OPINION / VIEWPOINT
Five Predictions for Supply Chain Management in 2022 Amel Gardner, Vice President and General Manager, Infor Middle East & Africa, gazes at her crystal ball to make five predictions for the global Supply Chain Management this New Year.
2021 has been a crazy year for supply chain professionals. The global supply chain industry got extensive media coverage for reasons as diverse as a the giant container ship the ‘Ever Given’ blocking the Suez Canal for an extended period of time to a chip shortage for auto makers. A world of people who had no idea what a supply chain was at the beginning of the year now have a much better understanding of how the goods they purchase get from one place to another. The reality remains that a lot of the transport issues manufacturers are facing in 2021 are not going away. Be ready for plenty of supply chain news in 2022 including these important trends.
Prediction 1: Supply shortages will continue to keep ocean container rates high As long as several global economies continue to thrive, the demand for goods and services will continue to hold transportation rates, particularly ocean container rates, at record levels. However, with inflation rearing its head in various parts of the globe, higher prices on products may lead to a consumer slowdown, allowing manufacturers and their suppliers some breathing room to restock their supplies.
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Amel Gardner, Vice President and General Manager, Middle East & Africa, Infor.
That said, the backlog of existing demand will keep ocean transport rates higher until bottlenecks drain out. As we see supply and demand begin to balance out in the second half of 2022, transportation rates should creep lower heading into 2023.
Prediction 2: Sustainability initiatives will not be equal across the board Even with Heads of State coming to an agreement on sustainability requirements, it will largely fall on individual companies to enforce these standards upon themselves. While many organizations have already expressed, and even implemented, plans to reduce or eliminate carbon emissions, many have yet to adopt any strategy to make both immediate and long-term impacts. Without a unified, standardised pact that holds both countries and companies
accountable, minimal change will be made. Until such a standardisation exists, consumers and investors are the ones most likely to force companies to make the necessary shifts, as the younger and more environmentally conscious generations continue to grow into the largest global consumer base.
Prediction 3: Organizations will bring their supply chains closer to destination With supply shortages stretching from groceries to semiconductors, many organizations have been forced to examine ways to bring crucial components closer to final production process to ensure history doesn’t repeat itself. With many global organizations looking to localize larger portions of their supplier base, supply chains will find themselves better equipped to handle large demand spikes as they occur.
