From the COVID-19 pandemic to the Russia-Ukraine war, adverse global events have put supply chains on high alert. While the impact of these events is felt by all, it’s especially difficult for companies in the manufacturing and logistics sectors to overcome them. An over-reliance on global trade routes leaves businesses vulnerable to unexpected events. Supply chain disruptions are not just a logistical headache that delay product delivery and drive up prices; they can also damage brand reputation and erode consumer trust.
Several factors cause supply chain disruption, including natural disasters, power outages, supplier bankruptcies, policy changes, geopolitical conflict and transportation infrastructure issues. When these factors occur, they create shortages of raw materials, halt production and cause transportation delays. This in turn leads to product shortages at retail and consumer goods stores.
As the supply of products declines, consumers lose patience and shop elsewhere. This frustrates manufacturers and brands, who have to spend more money on advertising and marketing to make up for lost revenue. Moreover, it can be expensive for retailers to keep shelves stocked with products that don’t sell.
Building resilience in the face of supply chain disruption requires careful monitoring and predictive analytics. Real-time transportation visibility platforms and AI tools allow businesses to spot issues with their inventory and production process and take corrective action. Establishing clear channels of communication also helps prevent minor problems from escalating into full-blown crises. And implementing stringent quality control protocols can help ensure that products meet the highest industry standards.