A Normal Supply Chain? It’s ‘Unlikely’ in 2022. (Published 2022) (2024)

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A Normal Supply Chain? It’s ‘Unlikely’ in 2022. (Published 2022)? ›

Many months, and perhaps years, are likely to transpire before the chaos subsides. “It's unlikely to happen in 2022,” said Phil Levy, chief economist at Flexport, a freight forwarding company based in San Francisco. “My crystal ball gets murky further out.”

In February 2022, Peter S. Goodman, writing in The New York Times, argued that returning to the pre-COVID-19-pandemic global supply chain was seen as "unlikely" in 2022.

The pandemic continues to offer significant challenges for supply chains globally. Even in 2022, national lockdowns slow or even temporarily stop the flow of raw materials and finished goods, disrupting manufacturing as a result. However, the pandemic has not necessarily created any new challenges for supply chains.

“Over the course of the past year, but in particular in 2023, global supply chains have eased remarkably quickly — removing one of the biggest headaches in terms of activity and inflation,” the London-based bank said, while noting that the trend is largely the result of subdued global demand for goods.

The supply chain of the future will use artificial intelligence and other digital technology to automate execution. Not only does this connect decision making across the value chain, it also gives employees more flexibility with work design.

Long lead times and materials shortages

Supply chains have been overextended for quite some time. Bottlenecks at ports around the world were a problem before the COVID-19 pandemic, and lockdowns compounded the problem so severely that they're still not fully resolved.

Key actions to take in 2024 include:

Leverage low-code apps to go from managing supply chains to building agile, resilient and predictable supply chains. Use low-code platforms to modernize legacy systems, automate processes and connect disconnected systems.

A new wave of challenges are materializing for global supply chains, from shipping lane issues to increasing market regulations.

After several years of pandemic-related disruption and uncertainties, the global supply chain landscape appears to be on a tentative road to recovery in 2023. However, even though news has improved, this doesn't mean that all supply chain issues today have been laid to rest.

Since product shortages arose in the wake of the COVID-19 pandemic starting in 2020, the supply chain of goods has drawn more investor attention. In the global economy of 2024, supply chain issues are generally isolated, but events continue to call attention to potential vulnerabilities.

How long will supply chain problems last? ›

More than half of logistics managers at major companies and trade groups say they do not expect the supply chain to return to normal until 2024 or after, according to a new CNBC survey.

Supply chain resiliency is improving with increased transparency, better communication and collaboration, increased digitization, a focus on sustainability, and a move toward shorter supply lines as participants reexamine their sourcing strategies.

Geopolitical conflicts, strike threats and weather-related disasters tested supply chains in 2022, adding new headaches for businesses still grappling with the fallout from the pandemic.

The next big thing in supply chain is AI and machine learning. More brands are using AI for predictive analytics, demand forecasting, and automated decision making. Get news, trends, and strategies for unlocking new growth.

The consumers are becoming more demanding, and this is leading the supply chains to change and evolve at a faster rate. Modern operations are focused on technology and innovations, and as a result, supply chains are becoming more complex.

Since product shortages arose in the wake of the COVID-19 pandemic starting in 2020, the supply chain of goods has drawn more investor attention. In the global economy of 2024, supply chain issues are generally isolated, but events continue to call attention to potential vulnerabilities.

Supply chains in 2023 continued to improve since the Covid-induced downturn of 2020–2021, experiencing smoother operation, with less congestion and a more balanced supply/demand environment.

Risk factors for further supply chain disruption include a possible rebound in U.S. port congestion; spillover from the Russia-Ukraine conflict at Northern European ports; limitations on airfreight transportation, particularly along the Asia-Europe lane; COVID-19 lockdowns in China; and disruptions to rail freight, ...