Demand is outpacing supply chain – Is yours at risk?
Businesses are experiencing a surging demand for supply chains across the globe. Consumers are shifting their preferences from traditional shopping to online shopping and businesses are taking note. Specifically, businesses are adopting a variety of different measures to survive and keep up with the demand and ensure seamless inventory management.
What caused this supply chain demand?
The industry has faced several challenges such as labor shortage, inventory management, transportation disruptions, supply chain inconveniences, and inefficiencies.
Post Covid-19, supply chain companies have been forced to juggle a very strong demand while facing extreme challenges in the industry. For example, the labor shortage has forced companies to cut back on production and miss deadlines from a supply chain perspective. Additionally, on a global level, supply chain companies cannot obtain the amount of inventory needed to meet the rising demand. Furthermore, the frequent power shortage in China and trade tensions between countries has caused a variety of problems. This has resulted in an increase in transportation costs and numerous delays.
Does your supply chain provider have the experience and capability to meet the demand?
This supply chain demand has also paved the way for new opportunities and sales along with expansions within the industry.
Companies must be evolving and improving to satisfy demand. Companies should be able to scale up or down in order to meet the demand fluctuations. Also, companies should have a strong, but flexible labor force, along with the facilities that enable round-the-clock operations. Companies should also have updated technology to properly update customers on the lifecycle status, documentation, and monitoring.
Ingram Micro is an expert in specialized fulfillment services with decades of experience in industries with customer profiles ranging from startups to established major enterprises.
What can supply chain companies ensure success during a down period?
The Covid-19 pandemic forced companies to adopt various measures to mitigate impacts and build resilience against future supply chain/demand problems. The Covid-19 pandemic forced consumers to use smartphones and mobile shopping methods much more so than in the past. And, it has created opportunities for companies and brands to interact directly with consumers. A study reported that 75% of people are shopping online at least once a month instead of going to the physical location. This has created benefits and challenges for supply chain companies. Many supply chain organizations were able to rapidly mobilize and initiate crisis management mechanisms. Additionally, supply chain companies increased demand forecasting to ensure proper inventory levels, labor force availability, and overall production fulfillment.
Ingram Micro is an industry leader with the knowledge and experience to handle the supply chain complexities and help ensure companies fulfill demand.