The Current & Future State of Global Supply Chain
Know the Impacts, Act on The Insights
Global markets are still reeling from the downstream effects of multiple heavy-hitting global crises. From hurricanes and tsunamis to geopolitical conflicts and labor shortages, there is no shortage of supply chain predicaments. These events cause postponed deliveries, shut-down shipping ports, cargo flights to be canceled, and spikes in price inflation for even the most basic commodity.
Common Reactions to Supply Chain Impacting Events
How can companies navigate supply chain disruptions? Here are some common reactions by supply chain and procurement managers within our industry:
- “Wade out the storm and hope for the best.” No changes made to operations
- Pivots made to sourcing and procurement
- Shifting production operations to unimpacted regions
- Halting or delaying foreign investment plans
- Stalling capital expenditures
- Moving growth investment over to other territories
Is there an appropriate response to natural disasters or even geopolitical conflicts and wars, to neutralize any impact to your supply chain?
The first step is to identify the risk and measure its impact. However, most companies don’t understand the extent of the disruption due to a lack of relevant data, lack of prescriptive and actionable insights. Another critical skill is to tie that knowledge into creating proactive strategies to mitigate future disruptions, enabling control and resilience for “future-proofing” their supply chain.
How Technology Drives Supply Chain Management
As organizations look for relevant data and insights into their supply chain, they are investing in technology to be more data-driven in their decision-making. Many platforms and service partners are available to stand up data analysis and insights for market volatility impact reporting and market forecast tools.
The future of global supply chain management IS data technology. Companies can effortlessly optimize inventory levels, manage shipment lead time, check supplier availability and transportation capacities. This is achieved through data collected from automated workflows across people, systems, information, processes, and the investment capital of an organization.
To “future-proof” their supply chain management, companies can plan for changes based on forecasted events, drawing a healthy balance between expenditures, service, and business opportunities.
An example – By forecasting events, such as typhoon season (June – November) in Japan, companies can either shift some of their distribution networks to other countries or carry extra inventory in those months while balancing the cash flow needed against the risks.
Get Your Own Access: Free Market Volatility Impact Reports
Are you looking to explore how data can help your company with mitigating supply chain disruptions? We’re offering free supply chain market volatility impact reports by extending our platform to those being affected by global supply chain disruptors.
As a trusted partner within the electronics and intelligence sector, SiliconExpert tracks heavy-hitting geopolitical incidents and natural catastrophes daily, to stay responsive to the needs of the electronics industry.
To guide and assist others in understanding what and how current global events are impacting their supply chains, we have launched our New! Supply Chain Impacts site.
We invite you visit and download our FREE supply chain impact reports. Refreshed weekly, our impact reports deliver critical information on raw materials, components, and suppliers being impacted by today’s most prevalent and invasive global happenings.
Businesses must be capable of adapting to major disruptions and be resilient to today’s complex challenges. Let us help ensure you are better prepared for tomorrow.