2024-01-03 23:47:00
The world teams are once again in trouble supply chains because of both wars ongoing, of the more general geopolitical risks, but even of climate change, with global trade threatened again. In the new year, problems are expected in the transportation and distribution of everything from microprocessors to oil and from consumer products to grains.
Those companies that were ready to plan an alternative strategy in their procurement when the pandemic caused a heart attack in the supply chain, will now be forced to employ it sooner than they expected. A new inseparability prevails in global supply chains, as the movement of ships in the Panama Canal due to the reduction of available water, while in fact it has been completely stopped in Suez Canaldue to the risk of insurgent attacks Houthi of Yemen.
The combination of these destabilizing factors is putting pressure on businesses, which have tried to shield their operations and ensure flexibility in their movements to adapt to a rapidly changing environment in both shipping and manufacturing. As a related report by the American Wall Street Journal points out, the combination of sudden shocks puts ocean freighters, trucks, and a number of cargo carriers and logistics companies in a very difficult position this year, which have to change routes and direct goods elsewhere.
The American newspaper points out, however, that some businesses, including some retailers, achieved spectacular success last year as they managed to put on the market huge stocks they had accumulated during the pandemic to deal with the heart attack in the supply chain and to adapt to the rapid changes presented by consumer preferences. In the US in particular, where holiday sales were up 3.1% year-on-year, many retailers reported inventory reductions.
In the new year, there are expected to be problems in the transportation and distribution of products.
During the pandemic, many retail businesses as well as manufacturing companies abandoned the strategy of immediate orders when the products are needed, be it clothing, electronics or furniture, and turned to the safe stockpiling strategy that gives them the ability to be ready to make these items available in the market so as not to miss sales opportunities. Above all, however, many companies turned to suppliers from their neighboring countries. In the US, for example, many businesses turned to suppliers from Mexico to replace their Chinese suppliers, who were unable to ship their products amid the lockdowns.
Thus, during November the orders transferred from Mexico to the USA were increased by 150% compared to the corresponding period of last year. At the same time, however, there are problems at the border of the two countries, and the Customs Authorities are sporadically stopping traffic in order to channel officials into border control to stem the waves of migrants. In short, changes in supply chains present new challenges and nothing will be easy.
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