Supply Chain Live
Below the latest supply chain issues and a collection of the supply chain news from around the world.
A potential economic recession and the supply chain bullwhip are colliding
Supply chains are experiencing a massive bullwhip from the COVID economy and have built up massive inventory levels. A slowdown in consumer spending caused by inflation and a potential recession will have a massive impact on freight demand and prolong an inventory drawdown.
As we look at the pandemic through the rearview mirror, the economy is shifting to a new phase. While the United States is currently experiencing full employment, American consumers are incredibly stressed about the state of the economy and personal financial security. Inflation, crashing stock markets, higher interest rates, and economic uncertainty are sapping any confidence that full employment should offer.
For supply chains, the consumer pullback couldn’t come at a worse time. The bullwhip effect has created a massive overstock of inventories and wreaked havoc on global supply chains as companies try to recover from the pandemic economy.
4 Ways To Optimize Procurement in 2022
Global disruptions still continue as industries walk out of the pandemic and face new challenges related to geopolitics. While organizations try to overcome these challenges by managing costs and cash flows, optimizing procurement can also prove to be an effective way to improve supply chain performance. Weak procurement processes can lead to production delays, stock-outs, and disruptions in the supply chain.
McKinsey identifies a positive correlation between improving procurement processes and corporate performance