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4 Factors that will impact the future supply chain

As the world has learnt many things with the passage of the Covid-19 pandemic, its effects are still being felt throughout the supply chain. Over the globe, various industries have gone through different things, whether the sector is related to computer chips or any other patio furniture; the shortage of products has resulted in delayed orders, rising prices, and customer frustration.

The pandemic is far from an issue that could disrupt the supply chain of the products. On the other hand also, companies must be prepared for the factors that could throw off their everyday operations—especially when working with international manufacturers.

Controlling every factor in the organization of the supply chain, such as understanding the risks, will help you to perform better to continue normal operations.

1. Implementation of new technology

New supply chain technology has significant potential for improving the efficiency of the entire industry. On the contrary, the introduction of this technology can create disruptions in the company, particularly when different vendors and suppliers are at different stages of the process.

2. Transportation issues

The delay in the transportation of the product is one of the significant supply chain issues. The pandemic outbreaks are causing shipments to be made by using rerouted to different ports or forcing containers to wait in port for weeks when they would normally be processed in less than a day.

A lack of transparency regarding the shipment status and condition is a serious issue for all businesses, even when the business belongs to shipping sensitive or fragile items.

3. Natural disasters

The cause of a fire, hurricane, tornado or any other unforeseen natural disaster can create significant disruptions in the supply chain of the product, particularly when a company’s supply chain is dependent upon the geographical boundaries of the area or the country.

4. Pricing fluctuations

No matter what industry your business belongs to, price fluctuations in seemingly unrelated spheres can disrupt the supply chain. A supplier could raise their prices on crucial components that are utilized to manufacture the products. For some of the commodities, the pricing prices exists including the crude oil that have a direct impact on shipping costs.

A change in price for such a factor related to your business’s supply chain can create a domino effect that your business must account for. A thought must be given by the companies about are they will raise their own prices, switch suppliers, or simply endure a temporary reduction in profits by keeping things as they are.

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