No one could have predicted Russia’s invasion of Ukraine to have such a long duration, and consequently has set off a series of new supply-chain bottlenecks around the world.
Though they are not responsible for producing computer chips used by global automakers, Ukraine is the world’s leading source of neon, a gas needed for the lasers used in the chip-making process. Fortunately, many chipmakers stockpiled neon ahead of the invasion and sanctions blocking trade, however there are serious concerns for the long-term availability of the gas.
Germany is heavily reliant upon Russian energy and suppliers across Eastern Europe, and has posted the steepest one-month drop on record. Factories are facing diesel and parts shortages, as well as delays moving cargo through key North Sea gateways as their traditional travel paths have been extended to avoid off-limit zones.
In addition, Covid surges across China have led to temporary lockdowns, as the country sees it’s worst outbreak since the early days of the pandemic. With factories closed, and only truly essential workers able to leave home, the disruption of production of finished goods is monumental.
China is home to close to one-third of global manufacturing and produce goods like Toyota and Volkswagen cars, Apple’s iPhones and components like circuit boards and computer cables. Unfortunately, the global supply chain is paying the price as the country as chosen a zero-tolerance approach to outbreaks that call for stringent lockdowns and mass testing to eventually resume production.
As global supply chain challenges continue to rise, nearly 80% of leading supply chain players surveyed said they’re accelerating their digital transformation due to the disruption of the pandemic.
Digital Transformation
As companies were prepared for the supply chain challenges of the past few years to continue, they were not however prepared for this current environment and short-term recovery is always a painful process.
Nearly 64% of supply chain leaders are increasing tech investment in technologies – including AI, predictive analytics, inventory and network optimization, and many, many more. All around, this will help elevate the industry but now is the time increase tech investment in your eCommerce business.
Automation
One comprehensive software solution reduces the cost of multiple software packages needed for your order processing and fulfillment needs, so that you can keep up with increasing consumer demand.
It improves order accuracy to 99% as well as drives labor costs down so that you can fulfill additional orders immediately without the added expense of hiring, training and retaining (the even trickier part in a labor shortage).
Pick, pack and ship becomes the primary focus of the team, as well as inventory optimization through automation. This allows you to have real-time data to make decisions, know your products and make informed decisions as this volatile market continues to shift.
Reduce Expenses
One comprehensive solution drastically reduces EDI expenses. As connection to all retailers, supplier and warehouses continue to increase, finding a software that includes the expense and simplifies the process is critical.
Strengthen Relationships with Retailers
Consumers are patient, but it is critical for eCommerce businesses to optimize delivery time as best as possible. Improved technology and automation provides real-time data on inventory and delivery details that provide a transparent communication between suppliers and retailers and customers. Everyone is aware of the numerous supply chain issues, but communication is key to better set expectations of delivery.
Simplify with OPAL’s 4-in-1 Software Solution
EDI | Order Management | Warehouse Management | Shipping
OPAL is the innovative solution to simplify your small to mid-sized to enterprise business fulfillment needs in today’s rapidly transforming retail world.
As complications continue to arise around the world and supply chain issues continue to grow, it is time to enhance your systems through automation with OPAL to keep up with this competitive industry.
To learn more about how OPAL has partnered with many to scale their business to new levels of success, click here!
Click here to book your customized demo today. We are here to support you through this time of change and are here to help you innovate and thrive!