The Supply Chain reports issued for 2022 state the global disruption because of the COVID-19 policies surfacing in many countries. In the words of Trade Credit insurer Euler Hermes, the second half of 2022 may see a little bit of change in the scenario. The zero-COVID policy disrupts and nag the supply chain in the next year. It can affect the manufacturing and shipping operations, and the appearance of the Omicron could give to another deal. The industry is even watching out for other challenges like labor and product shortages, extended port delays, extreme weather conditions, and health concerns when the demand for things is increasing rapidly.
Supply Chain Scenario In 2022
93% of the studies have reported disruptions in the supply chain in 2022. The month of October and November saw almost 17% of unfulfilled orders. Moreover, 70% of the retailers are skeptical about the pandemic and geopolitical events that will affect the supply chain movement. Most people involved in the supply chain believe that the impact of the last two years of a pandemic will be seen in Q1 of 2022.
However, the experts believe that an agile and resilient framework require to thrive in the logistics landscape in 2022. Manufacturers and retailers from across the globe are finding solutions to unlock any inefficiency in the system. Even the introduction of new technologies in the global supply chain will help meet the challenges and create growth opportunities.
The impact of the pandemic on the supply chain in 2022 seems huge, and it is currently testing the operational efficiency, commercial, organizational, and financial resilience in this field. Therefore, things like innovative technologies, automation of the processes, and investment in the ‘resilience’ for the next two years will improve the overall supply chain network.
Significant Trends In Supply Chain In 2022
- Sustainability Efforts: Most customers are choosing sustainable and environment-friendly products. So, the organizations are looking forward to sustainable resources from designing to packaging.
- Automation: Be it vehicles or equipment, automation will be in 2022. You can watch out for autonomous vehicles and robots working in the supply chain network.
- Personalization: The product and supply chain customization is the need of an hour. The customers will be requiring a more personalized experience, be it on delivery quality or meeting the demands of the consumers. Everything will get change from sending personalized emails to customized messages stating about product delivery in 2022.
- Increased Use of Cloud Technology: Cloud technology saw a boom in 2020 during the pandemic. With the surge in data, the adoption of new technologies and digital transformation has seen monumental growth. Even SMEs have started watching the boom in the use of Cloud Technology.
- Optimization for Reverse Logistics: The organizations will efficiently handle the inflow and outflow of goods. The supply chain management personal will be trained in handling the reverse logistics that will also support the circular supply chain. It will help in acknowledging how to reuse and resell the products.
The global supply chain scenario faces challenges as the economies are surging out of pandemics. But, the experts are hopeful that the Q2 of 2022 can experience improvements with less to no disruptions with innovative processes.