MODIFI’s H2 2022 Predictions Report assesses factors affecting global supply chains
Global fintech MODIFI, has released its Global Supply Chain Disruptions: H2 2022 Prediction Report .In this report, Industry experts from around the world weigh in on their predictions for how supply chains will change and businesses must adapt from the impacts caused by the Covid-19 pandemic and recent world events.
Expert viewpoints on the external factors disrupting and transforming the supply chain industry, including economic challenges caused by rising inflation, skyrocketing fuel prices, and international conflicts are explored. The report also highlights how the retail industry is affected by emerging technology that enables exporters and importers to match supply with demand patterns, and track modern purchasing habits and choices.
One of the biggest trends being seen is geographic dispersion of a buyer’s supplier base. “The crisis in Ukraine and Russia, as well as other supply chain disruptions, such as Covid-19 lockdowns, staffing shortages and labor unrest, have caused many businesses to look at more localized manufacturing and shorter supply chains. The accelerated transition is resulting in more companies increasing their investment in countries such as Vietnam, Thailand and India,” said Brian Dowd, sales director – North America.
To combat supply chain disruptions, our experts have also identified that technology is becoming critical to supply chain success in the US as businesses invest in innovative tools to provide more insight into the movement of goods and inventory. Emerging technologies such as AI, predictive analysis, risk analysis and monitoring, are helping companies deal with disruptions and external obstacles by enabling leaders to make instant executive decisions within their supply chain.
And while many countries in the world, especially the U.S. and across Europe, are emerging from the Covid-19 crisis, the virus still casts a long shadow over China. As Chinese authorities implement strict pandemic restrictions in major cities and suspend operations at factories and businesses, this is affecting manufacturing and supply chains around the world. The report acknowledges that the global supply chain remains stretched, but predicts that we are over the peak, although it remains to be seen how long it will take before domestic transport returns to normal.
Buyers and sellers are also also using global payments to manage liquidity and risk. “When dealing with supply chain disruptions, both sellers and buyers are often unable to match payment term expectations, and the waiting period for payment can go up to 90 days.” said Brian Dowd, sales director – North America. In addition, since “Container shipping prices have only fallen 16% and continue to decrease slightly, but not drastically, so businesses are trying to diversify their risk by using models that pass some of the costs to buyers.” said Ankit Goel, senior vice president – global accounts.
The global supply chain market is in a period of turmoil and organizations across the world are attempting to build resilience into their systems. This means shifting to local suppliers, scrutinizing suppliers, investing in or stockpiling inventory, and investing in supply chain security. Organisations in every country are using technology to transform the way they do business to secure opportunities in an uncertain future.
To learn more and access MODIFI’s Global Supply Chain Disruptions: H2 2022 Predictions Report, please download the report here.