Although some of the more immediate effects of the pandemic have been alleviated, others will take time. Understanding that these external factors are here to stay, many businesses are taking charge and embracing innovative solutions to solve supply chain issues. Here are the top problems businesses are facing and some of the ways they are tackling them.
Controlling Freight Costs
Increasing freight costs was already an issue pre-pandemic. A massive labor shortage of truck drivers has only amplified the problem. Now, with the pressure of increasing gas prices, businesses are turning to electric vehicles to cut down on freight costs. GM is one of the leading car manufacturers that has made it easier for businesses to make the switch. Offering cash allowances and incentives to participating businesses, GM is taking charge of transitioning America’s freights into all-electric vehicles.
Pressures of Fast & Free Shipping
It’s no secret that large eCommerce companies such as Amazon have created and capitalized on the demand for faster and cheaper shipping. With dominance over the industry and the capability to meet consumer demands, Amazon has created an unrealistic standard for others to compete with. This so-called “Amazon effect” has put strains on the already struggling small businesses. To keep up with consumer expectations, eCommerce based companies like Ryder are racing to expand their distribution center portfolios in an effort to provide faster shipping to their customers. Regardless, unless substantial shifts take place in the industry or consumer expectations, these pressures will continue to be felt.
Keeping Up with Technology
Another pressure that is felt by all businesses is to keep up with technology. As the competition ramps up, newer technologies are helping businesses cut down on costs and speed up their operations. However, lack of access to these technologies is a major issue due to supply chain problems. MIDCOM Data Technologies, a leader in printer and barcode scanner repair and sales, has introduced innovative solutions to help its customers navigate these challenges. “Most of our customers in warehousing and logistics are feeling intense pressure to move items in and out of their warehouses,” says Ken Feinstein, VP of MIDCOM Data Technologies. “Since the pandemic began, we’ve found higher demand for our Printer Protection Plans and refurbished equipment including thermal label printers and barcode scanners to keep the critical technology that all warehouses need to eliminate downtime and bottlenecks in the picking and fulfillment processes”.
The Future of Supply Chain
Experts estimate that many of the factors contributing to supply chain disruptions will remain well into 2023. Supply chain management has become a focus point for many industries, transforming the way they do business in a short amount of time. As businesses learn to coexist with these challenges, new technologies are emerging to alleviate the bottlenecks. These innovations will continue to create shifts in the warehousing and logistics industry beyond the effects of the COVID-19 pandemic.
SOURCE MIDCOM Data Technologies