Global Supply Chain Trends 2022

Jan 28, 2022

Those impacted by challenges in the global supply chain such as port congestion in the USA, a lack of inland transport and truck drivers to support recovery in the UK and continental Europe and an unprecedented increase in shipping freight rates as a result of global shortage of containers, can reflect on a troublesome year.

 

Supply chain challenges have come to the fore, bringing with them opportunities to search out new ways of transporting goods and services around the world.

 

E-commerce is driving recovery with more and more companies moving to a direct to consumer (D2C) approach for all fast-moving consumer goods in sectors including retail, food and pharmaceuticals. This approach represents a faster shipping model with potentially lower prices.

 

The New Year is an opportunity for companies to get ahead of the curve and consider future supply chain trends to change the way they move goods and become resilient to unforeseen disruptions:

 

1)    Develop a strong Order Fulfilment Strategy.

 

In 2022 the consumer expects every brand to have an e-commerce platform that can deliver a product within twenty-four hours of payment. This requires a competitive Order Fulfilment Strategy that can provide a complete end-to-end and reverse logistics supply model directly to the consumer. This may be a challenge for consumers located in hard-to-reach areas of the world. An adaptable and creative order fulfilment strategy is key to providing solutions.

 

Call Prism Procurement Solutions today to see how we can help you to meet online consumer demands.

 

2)    Lease Warehouse Capacity.

 

Many companies, particularly e-commerce operations, need more distribution centres which are closer to their customers, preferably without the burden and cost of owning commercial properties in every market. Leasing warehouse space from 3PL Providers for efficient order processing will increase sales and support a direct-to-consumer model. This of particular importance in countries in the Middle East or Africa which are further from global supply chain hubs. We have already seen increased demand for micro warehouses closer to the consumer to shorten delivery times.

  

3)    Optimise Sustainable Last Mile Logistics.

 

Transport and trucking shortages in logistic hubs in the USA, the UK and Europe this year encourage the use of innovative transportation methods.

 

The use of drones to deliver consumer goods will make traffic congestion a thing of the past and increase the effectiveness of real time customer data by order.  We’ve also seen growing markets for electric cars, vans and e-cargo bikes.  Forward-thinking companies will soon see cost efficiencies in reducing reliance on fossil fuels.  Last mile delivery is expected to flourish in 2022 as transport companies compete to deliver a sustainable delivery service that is faster than contemporary transport methods.

 

Brands which are greener and actively reduce the carbon footprint can also reap the benefits on the demand side with consumers increasingly looking at environmental credentials.

 

Liquified Natural Gas (LNG) container vessels are being trialled by major shipping companies.  Use of LNG-fuelled container carriers to ship container goods east to west is expected to become a pillar of global climate change policies.  Collaboration amongst 3PL and suppliers will be the key to a sustainable delivery service.

 

Our consultants are experienced in carrying out projects for clients across a range of sectors and are ready to help you take advantage of these supply chain opportunities in 2022.