Four current and upcoming challenges to be met this year
There is a big risk for manufacturers as order cancellations loom large presenting a potential challenge in the near future. Consumerism built on 1-2 day delivery cycles is struggling as consumers look at big-ticket items with timelines pushed 2 to 4 months out. Sourcing locally or foregoing a purchase could slow manufacturing in the next six months.
Just in Time Impact
Raw material and component shortages are forcing manufacturers to re-think their production models, rolling to a build-to-order model with confirmed inventory of raw materials and components required to produce a finished product.
Sourcing products, components and parts is evolving to mitigate risk exposure. Development of procurement strategies will be needed to evaluate risk to the supply chain as another key element alongside cost and quality.
Truckload Market Capacity
Traditionally a mix of non-asset providers delivers small carrier capacity to shippers. The challenge: how to ensure your non-asset strategy is not inflating already higher index rates used to price spot market truckload rates.
Implementing Supply Cycle Design: Managing the supply chain from an end-to-end perspective has to give way to understanding the dynamics of equipment capacity, congestion points and market-rate triggers to embrace resiliency in your supply chain. In addition to the supply cycle, supply chain strategies must encompass a broader view that includes the source and movement of your raw materials, components and finished goods.
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