ReleaseWire Connect

The pandemic has created a broad spectrum of challenges for those working in logistics and supply chain. Key among them has been the way that consumer behavior has changed in response to conditions such as lockdowns and travel restrictions being imposed and lifted. 2020 was the year in which many retailers realized that there may no longer be just one peak shopping season but that micro peaks could occur all year round, often with very little warning. Technology-enabled warehouses are becoming essential in terms of supporting omni-channel retailers in finding ways to respond to these unpredictable shifts in buying patterns.

The past year has presented challenges for businesses across the globe. Those that have been agile and constructive in their approach to the pandemic have fared the best over this difficult time. This is specifically relevant in regard to supply chain management, where there are so many people and variables involved. Taking a systematic approach to supply chain management entails evaluating the whole supply chain and determining the risks that could impact manufacturing or final delivery. Proactive supply chain management requires a high level of flexibility. Being adaptable involves providing reliable replacements and contingency measures for all procedures involved in manufacturing, transport and delivery.

Procurement professionals play an important role in establishing resilient supplier networks. Discussions around increasing resiliency focus on increasing transparency and visibility in our supply chains, particularly given recent technological advancements. However, technological advancements such as artificial intelligence (AI) can be used in a variety of ways. Resiliency is heavily reliant on the ability to adapt in the face of adversity. AI can support category managers to stay on top of industry trends as well as find additional suppliers in the global market, making agile supply sourcing a reality.

Manufacturing production in the United States rose at a slower rate in April, hampered by input shortages as increasing COVID-19 vaccines and major fiscal stimulus released pent-up demand. The Institute for Supply Management (ISM) released a report in May that revealed record-long lead times, widespread shortages of essential raw materials, increasing commodity costs, and transportation challenges across industries. Supply chains have been greatly affected by the pandemic, with organizations and manufacturers continuing to struggle and satisfy rising demand rates due to the impact of COVID-19, according to the ISM. Worker absences, short-term shutdowns, and difficulty filling open vacancies could restrict manufacturing's growth potential, according to the report.

The reliance on multiple organizations to produce components has never been a greater driving factor in a company's success or failure in today's manufacturing industry. Global procurement and processing have resulted in an ongoing, complex, supply chain ecosystem, with a plethora of coursing and production options. As a result, a dynamic, interconnected network of vendors has emerged. Situations such as the COVID-19 pandemic highlight and intensify supply chain flaws, and with producers pursuing lean principles, the supply chain is stretched even further.

President Joe Biden has recently outlined an extensive list of environmental aims for his administration. Establishing a climate plan for the Amazon, is one of the US' key environmental goals, since it acts as an important component of a US strategy toward South America, as well as its pivotal position in a global response to the climate crisis. In 2012, the US played a key role in establishing the Tropical Forest Alliance (TFA), a coalition of governments, businesses, and civil society to end deforestation in commodity supply chains.

The US Government spends over $500 billion on goods and services per year to support and finance its activities, making it the single biggest consumer in the world. When the federal government spends money tactically, it can operate as a dominant industry leader, influencing whole markets. Experts have suggested that targeted spending on clean energy, electric vehicles, and greener construction materials can have an effect on sustainability and this in turn, can help support the fight against climate change. Procurement experts have indicated that although federal strategic spending would affect the climate crisis, it is likely that this will take years and should not be seen as an immediate solution.

Since 2016, Uber freight has allowed independent truckers and van drivers to connect with shippers and freight forwarders. 2021 has seen the ongoing development of the San Francisco-founded company via its introduction of 'Market Access'. This strategic procurement channel enables shippers to source capacity in real-time whilst maintaining market visibility and control over cost. This feature also allows the user to access competitive rates on inconsistent volume, which is especially vital in a tight market. Furthermore, Market Access guarantees price transparency and it has been developed to enable shippers to pay carriers the costs incurred over the Uber Freight marketplace, plus an agreed-to fee upon delivery.

The domestic US logistics industry continues to thrive as we approach the anniversary of the shelter-in-place mandate, which resulted in a significant boost for American e-commerce. However, the sector is also facing cost increases, new market demands, and staffing challenges. Simultaneously, new technology means that delivery via autonomous vehicles and drones is quickly becoming a reality, with key commercial sector regulatory approval expected to be rolled out by the end of March 2021. According to recent market research and industry forecasts, the logistics sector is well-positioned for additional growth.

The logistical efforts for the distribution of the COVID-19 vaccines present global challenges on a never-before-seen scale. Complex and detailed plans and procedures must be put in place to maintain the different vaccines at different temperatures and enable effective transportation to isolated and hard to reach areas. Lufthansa Cargo's pre-COVID $5 million investment at their base in Chicago O'Hare Airport has allowed them to handle vast amounts of pharmaceutical cargo.