Five strategies to get ready for supply chain disruptions in 2024: What to anticipate
Unpredictable disruptions have the potential to harm every supply chain. Logistics planning requires knowing where potential risks and weak points are and how to mitigate them. Although many factors are beyond their control, businesses can take precautions to mitigate or completely prevent the effects of interruptions.
1. Identifying several paths to market: During disruptive times, even the easiest path to market may be fraught with difficulties. Finding several routes to market and having the flexibility to accelerate or decelerate supply chain movements when necessary are two benefits of collaborating with an integrated logistics partner. During a disruption, this tendency will assist avoid supply chain bottlenecks, often known as hard stops, while still meeting customer needs.
2. Developing backup strategies: There are two types of disruptions; Predicted and unforeseen. Unpredictable events like political upheaval and unique natural occurrences like earthquakes and volcanic eruptions cannot be anticipated in advance.
It is sometimes possible to foresee and include anticipated interruptions, such as more extreme weather occurrences like hurricane/typhoon seasons and drought seasons, into supply chain resilience planning.
Businesses should look for innovative methods to collaborate with integrated logistics companies that can use their network to assist deliver predictive data and lessen the effects of interruptions in the upcoming year.
Businesses will lessen some of the disruptive stresses in their supply networks and maintain their resilience by developing stronger, workable contingency plans.
3. Making use of choices nearer the market: Disruptions can have far-reaching and enduring domino impacts. While previous circumstances, such as the Russia-Ukraine crisis, have emphasized a drive towards near-shoring in place of far- and offshore, the COVID19 pandemic underlined the necessity for more flexible supply chains.
Some businesses may profit from near-shoring if unpredictable events, such as shifting weather patterns and political unrest, become more frequent. Certain firms might enhance their resilience against delays and interruptions by relocating their manufacturing and material sourcing to the same continent or area.
This is supported by the apparent trend in globalization towards more regionalized trading patterns. By utilizing solutions closer to the market, businesses may further safeguard against interruptions and more effectively adjust to changes in the wants and behavior of their customers. It makes fair to anticipate that this tendency will pick more steam in the upcoming year given the erratic political landscape we currently find ourselves in.
4. Putting new technology to use: There has been a noticeable rise in customer expectations for delivery and visibility of goods movement between the 2010s and 2020s. Technological advancements have improved climate and temperature control, reduced delivery times, and provided a greater understanding of the product path.
Thanks to technology advancements, businesses may now optimize their supply chains and save costs by fine-tuning their routes. But when unforeseen circumstances force a plan to change, businesses will find themselves in need of a logistics partner that can leverage technology to slow down, speed up, or stop completely.
5. Working together when it counts: The year 2023 brought attention to the necessity of forming alliances that provide practical solutions that function when and where businesses need them most. Although the pandemic presented difficulties for many companies, the post-pandemic phase would be marked by novel and unforeseen requirements.
Naturally, as customer expectations continue to develop and the market adapts to meet those requirements, many sectors will encounter new challenges. The appropriate collaborations will guarantee that businesses can be more sustainable while still meeting the demands of their customers, especially in light of the growing need for more environmentally friendly solutions.
Preventing interruptions in supply chains by 2024
2024 will bring even further changes for the sector globally. Even though no one is in possession of a crystal ball that can predict the future, businesses can still be ready to handle supply chain disruptions in 2024 by modifying their backup plans, reevaluating their routes, utilizing improved technology (like forecasting), and collaborating with integrated logistic partners who can both support and prevent disruptions.
Moreover, purposefully weaving resilience into the supply chain can function as a buffer against outside disturbances, enabling businesses to design a supply chain that serves their needs on an as-needed basis.
Source: https://www.maersk.com/insights/resilience/2023/11/08/prepare-for-supply-chain-disruptions by: Cecilia Larsen Customer Communication Manager