Supply chain disruptions pose a risk for BCOs and LSPs, but regulations are coming that will further complicate supply chain operations in the coming months. This week’s look at headlines from around the industry highlights how organizations are preparing for both unexpected disruptions and regulations that will soon go into effect.
Continue reading to learn more, and contact the Cargologik team to learn more about how our platform is empowering supply chain stakeholders to maximize their opportunities in the future.
Supply Chain Disruptions — And New Regulations
Supply chain stakeholders operating in Europe are no doubt familiar with the EU’s Supply Chain Act (also known as CS3D), which will “establish a corporate due diligence duty for sustainability. The Act, once enacted, means that firms will have due diligence duties related to both their own operations and the actions of their suppliers.
As the regulatory environment becomes more stringent, BCOs and LSPs will have more compliance tasks to keep up with to avoid violations and potential fines. It’s becoming clear that visibility platforms are not only helpful in supply chain management and overcoming disruptions, but they can also help create the audit trails needed to monitor compliance and keep up with new regulations.
Shippers Using Caution With Visibility Tech
While the supply chain has not returned to pre-pandemic “normality,” the chaotic environment has died down enough that “shippers have once again become measured about their direct investment into visibility data tools,” according to the Journal of Commerce.
As visibility providers look for the best way to go to market, it’s important to know that shippers emphasize accurate data feeds over fancy applications. Many also prefer visibility tools to be embedded into the tech stacks of 3PLs and offered as part of a suite of services. This prevents the shipper from needing to evaluate and implement their own visibility data tools. Instead, they are essentially buying visibility as a service through 3PLs.
Planning and Forecasting + Visibility and Connectivity
Planning and forecasting alone, no matter how accurate, are not enough to achieve operational excellence in the supply chain, according to Supply Chain Brain. It’s important to complement accurate planning and forecasting with data visibility and connectivity with supply chain networks.
As noted above, visibility is becoming increasingly important to sidestep disruptions and create the audit trail needed for regulatory compliance. Connectivity is needed so that disparate supply chain systems communicate with one another, preventing organizations from experiencing fragmentation.
How Retail and E-Commerce Businesses Deal With Disruption
Retail and e-commerce businesses are among those most affected by constant supply chain disruptions. Supply & Demand Chain Executive suggests several strategies for companies in these industries to overcome disruptions and their consequences. Those strategies include:
- Planning ahead
- Diversifying suppliers
- Constant monitoring and communication
- Effective inventory management
- Alternative transport methods
- Resilience planning
- Technology investment
On that last point, investing in technology can help with all of the strategies listed above. The key is to find a single platform that delivers the functions you need and is connected to your existing tech stack. With the right technology in place, retail and e-commerce organizations will be better positioned to thrive in a future where supply chain disruptions are commonplace.
It’s Not COVID’s Fault Anymore
The start of the pandemic is now more than four years in the rearview mirror, and the Food Industry Executive suggests it’s time to stop blaming COVID-19 for supply chain issues. This message echoes headlines about how the supply chain has not returned to normal and may never. What are organizations to do in response to this message?
As the previous section notes, investment in technology is essential. For many years, the supply chain and logistics industry was reluctant to invest in new technologies and prone to rely on manual processes or legacy tech (like shared spreadsheets). Perhaps the reliance on manual processes and legacy tech is more to blame for today’s ongoing supply chain issues than the pandemic at this point.
The U.S. Supply Chain: More Resilient Than Many Thought
The Council on Foreign Relations weighs in on how the Baltimore bridge collapse has tested the supply chain in the United States. It takes a somewhat counterintuitive approach of complimenting the supply chain on its resilience so far, stating that “the port’s temporary closure … caused a logistics challenge but not a major supply-chain crisis,” adding that “the global economy has been relatively unaffected.”
It’s possible that the pandemic helped increase the U.S. supply chain’s resilience to the point where it’s better able to manage a tragedy like the collapse of the Francis Scott Key Bridge in Baltimore. Supply chain stakeholders should continue taking steps to improve their supply chain with technology, both to enhance resilience and achieve operational efficiency while improving customer experiences.
A Platform Built for the Supply Chain’s Future
The future supply chain has arrived. With it comes regular disruptions and more regulations for BCOs and LSPs to comply with. At Cargologik, we’re helping our users make the most of the new supply chain, centralizing and streamlining everything from visibility to document management.
If you need the right technology for the new supply chain, get started now.
