Supply chain crisis
Jarrod Kinchington, Infor ANZ vice-president and managing director How has the global supply chain crisis that unfolded in 2021 affected the manufacturing sector in the ANZ region? No vertical market appears to be immune to the hardships and challenges resulting from the global pandemic. As we find ourselves in the third year of the pandemic, the repercussions from severe supply and demand imbalances are still being felt worldwide with an immense impact on the manufacturing industry. From availability and increasing cost of labour, freight capacity, semiconductors, empty chassis and warehouse storage space, this crisis has now revealed itself to be multifaceted and an ongoing concern for 2022. Following the Omicron outbreak and amidst trade and shipping chaos, some emerging long-term patterns show that the manufacturing sector will continue to be impacted by the ongoing supply chain issues. The cost of ocean and air freight shipping will likely remain even after current congestion and capacity constraints have settled. It is expected that traditional ‘peak’ seasons will start earlier and run longer, whereas freight contracts are predicted to run for shorter terms. Is there a way smart manufacturing technology can help organisations predict and prepare for such events in the post-pandemic future? The supply chain crisis has taught enterprises worldwide that more needs to be done to secure their operations. While we are likely to continue managing supply chain disruptions that will increase in pace and impact, we must grow supply chain resilience and have the ability to forecast disruptions into the future. Organisations must prioritise first-mile technology investments and collaborative logistics service provider relationships. They cannot afford to be solely focused on price or low cost. Instead, they must have new goals for holistic and multi-dimensional forms of visibility for freight capacity, supplier work-in-progress and financial health, modal hand-off points and […]