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Supply Chain Risk Mitigation: Now More Important Than Ever

Russia’s untimely invasion of Ukraine has created a potentially dangerous and turbulent situation for logistics. These disruptive circumstances are not only limited to the affected area but are also directly impacting other areas beyond the war zone’s boundaries, urging the nations to work on supply chain risk mitigation strategies.

Russian invasion into Ukraine is affecting the logistics sector primarily and creating havoc for the global logistics industry. The logistics industry is currently facing significant risks which include transportation modes such as air, rail, road, and marine freight and fuel services risks.

However, targeted strategies have been planned to cope up with the logistics disruptions and overcome the potential risks as mentioned above. Some of the sanctions implemented on Ukraine by Russia are making the situation only worse with each passing day. Logistics industry always is at the dying edge of the boat in such war circumstances. National leaders group themselves on a round table and develop different coping strategies in such situations; however, risk mitigation is the only strategy that really counts. Some potential risks are discussed below that can rip off various aspects of the global logistics industry.

Air Freight Risk:

Air freight risk will eventually result in increased cost and limited capacity. It will create no-fly areas due to which flight house will be increased, and so will the operating cost. The impact and likelihood of air freight risk is exceptionally high; therefore, an adequate mitigation strategy must be created to combat any large disruption.

Mitigation strategies for air freight risk:

  • Extend the pricing contracts For the next seven to eight months.
  • Implementation of index-based price managements should be made on immediate notice.
  • Take core partners in confidence and work closely with them to mitigate the increased cost.
  • Remove capacity if not needed in air transport.

Rail Freight Risk:

Rail freight services between Europe and Asia will face disruption. Pan-European rail freight services will also face considerable transportation disruption. The European continental rail network will also be disrupted in the areas outside Russian territory. The impact and likelihood of rail freight disruption will range from high to low.

Mitigation strategies for rail freight risk:

  • Shift modes of transportation to air and water freight services.
  • Utilize the rail linking rail between northern Kazakhstan and southern Turkey.
  • Try using shorter routes for transportation.

Road Freight Risk: 

The disruptions and affected areas of road freight will almost be the same as rail freight. Road freight disruptions will be seen in Eastern Europe and Pan-European territory. Due to the potential risk, routes will be shifted to alternate areas, eventually increasing the transit hours. Similarly, the areas outside the Russian region will be affected equally. The impact and likelihood of road freight disruption will range from low to high.

Mitigation strategies for road freight risk:

  • Work closely with affected road carriers.
  • Understand and learn the changes in routes and services. 
  • Find out whether your carrier of choice will apply a surcharge.

Conclusion: 

Logistics professionals should not lose their hopes but must prepare themselves for the worst as well. Some of the immediate actions mentioned below should be taken to combat disruption risks.

  • Plan alternates for every sort of logistic risk.
  • Prepare for the unexpected and the worse.
  • Analyze risk assessments and implement strategies on logistics networks.
  • Reduce the risk exposure and constrain the surface area.
  • Enhance the transport planning route time.
  • Re-evaluate network resilience and capacity.
  • Prepare alternate sources of supply and transportation.
  • Create emergency funding for incremental costs of increased fuel charges.
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Increff Funding Event: the Company Raised $12 Billion

Up to $12 million raised in Increff funding for expanding business

Increff is a widely known and acclaimed supply chain firm based exclusively on E-commerce and lifestyle brands. Increff provides its services to famous retail and high-end fashion brands. This year an investment of 12 million US dollars was raised in Increff funding for a billion-dollar valuation of the company and was successful in raising the round. The funding round was attended by Mr. Binny Bansal, the co-founder and CEO of Flipkart. Premji Investors Company and TVS Capital 021 Funds also showed interest and participated in the fund-raising round at Increff.

Series- B funding:

Increff utilizes series- B funding and works as a software specialist to ensure the proper functioning of their offices in different states of the US and Midwest Europe. Increff also tries to add more new and raw products. Increff the series-B funding program showed keen participation from seven huge angel investors.

Progress of Increff in last five years:

Increff has made phenomenal progress of almost 90% to 95% in the last five years, including the Covid lockdown, but the company did not take a significant financial hit. Increff is a relatively large company with inbuilt internal and efficient processes to run the firm on a larger scale. The administration is now working to advance the company by investing in new technology and introducing innovative warehousing services. Increff also aims to open new firms in the United States and Europe.

SaaS-based merchandising solutions:

Increff offers SaaS-based merchandising solutions and addresses all kinds of warehousing issues. Increff is currently the mainstay of solutions for more than twenty retailers across the United States and some parts of Europe.

Support for next-generation entrepreneurs:

Increff is a company based on innovation and thus supports innovative ideas and tries to provide moral and financial support to the next generation of entrepreneurs. Increff is raising financial rounds with new entrepreneurs by investing in them. New entrepreneurs have great skills and intelligence because they know about the increasing growth and importance of e-commerce in global supply chains. New entrepreneurs can change the direction of the tide in the company’s favor by working with competitive brands and using the right technological solutions.

Statement of Sailesh Tulshan: 

Sailesh Tulshan, the founder of 021 Capital, said, “Our company has been partners with Increff for the last five years and has raised investment rounds with them quite frequently. Increff is doing well in transforming and improving merchandising and curating new solutions for global supply chains.”

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How to achieve supply chain agility

Manufacturers should focus on improving by continuously working on new ideas and strategies to stay relevant. Moreover, they also need to drive out costs and improve customer service. 

It has been proven that companies that work on supply chain agility have better customer service rankings than their competitors. Companies using strategic supply chain models with interactive software build up the core of their business.

Supply Chain Agility

When a market responds to changes smoothly, it is referred to as supply chain agility. Moreover, these changes are vast and involve everything from what the customer prefers to economic and market volatility.

It isn’t just about adjusting the daily operations and workflow to meet internal KPIs. It is about changing the process internally by improving manufacturing supply chain agility. It means data management, adopting new technologies and vendor service agreements.

The aim is to maintain a responsive and informed supply chain that can get through the market changes without hassle.

What does a successful supply chain agility rely on?

Successful supply chain agility relies on the following.

  • Understanding what the external factors are shapes your supply chain logistics. It needs to be considered even if the business is stable.
  • The value chain components affected by the disruptions in the industry should be explored.
  • Integration of a proactive technology for addressing the value chain points.
  • The new process should be regularly analyzed, for example, production cost savings, and cross-functional collaboration. Moreover, adjustments should be made when needed.

How to improve supply chain agility?

Here are some strategies that can help you in improve your supply chain agility

Examination and Adjustment

A successful supply chain doesn’t start by isolating your company nor requires you to create key performance indicators just for new ones. If a business wants a true agile chain, it should respond to the changes within the broadest industry. It allows the organization to be aware of what is happening in the market, why it is happening, and what can be done about it.

Since the outlook is comprehensive, the companies face struggles managing the facilitation, considering a true agile system. The leaders expect changes in everything—for example, the labor, inventory practices, logistic providers, and product development relationships.

Real-Time Point of Sale

Manufacturers have started using software for demand planning. They gather insights for aggregate historical data and focus on making improvements through inventory. Moreover, their shipping schedules are based on the previous cycles. However, this makes the pattern monotonous. Though it is essential to supply chain agility, it should not be the only focus point. When companies balance their demand and planning, they witness greater success.

Production and Selling Data Synchronization

Production planning and scheduling data systems should be aligned with demand-driven sales. It creates a more efficient and effective chain of networks. When these databases are integrated, it removes the response times according to the variable demand cycles. In addition to reducing out-of-stock issues, and improving the overall control of inventory.

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Supply Chain Visibility: All There is to Know!

Why should you care about supply chain visibility? 

Supply chain visibility means being aware of what is happening in your supply chain. Moreover, although the meaning is simple, it isn’t something that can be achieved easily. Since the past few years, multiple organizations have experienced disruptions in their supply chain due to weather changes, unforeseen circumstances like fire, and natural disasters, for example, storm warnings.

After a thorough analysis of the companies, the observation suggests that most companies were caught off guard since they had a poor supply chain. Furthermore, in some cases, companies were unaware of their supplier’s and sub supplier’s whereabouts. Some of them were also unaware of the critical dependencies. 

Supply Chain Visibility

There are various definitions for supply chain visibility. However, the most common one is the ability to track raw materials and components from the original manufacturers and suppliers. It is all through the organization’s manufacturing facilities provided to the customers. In addition, for retail operations, the goods are tracked from the suppliers to the end customers.

When the situation is ideal and the supply chain visibility is good, chief officers have access to the following data

  • Supplier’s order receipt
  • To complete the order, the status of the raw materials is available
  • Manufacturing program and status of the supplier
  • Supplier’s delivery date
  • Details of shipment
  • Regulatory and customer information
  • The status of the order regarding the progress plan

If companies want to gain full benefits of supply chain visibility, all the information should be trackable in real-time. However, some organizations can and do achieve this.

A manufacturer has the option to digitize his entire factory to track the transformation of raw material to finished goods. However, they will not be able to keep realistic estimates until they don’t integrate IT into their system with the suppliers. Based on that, there are two parts for visibility

  • Operational Visibility 

It means that you can gain visibility for your operations, for example, whatever product is under your care can be tracked at any time. Considering a factory, it can be the IoT sensors monitoring machine usage and inventory levels? Moreover, data silos are reduced when the IT network is interconnected.

  • Partner Integration

Partner integration means that a company can choose a partner to drive high-level internal visibility. Furthermore, they can also extend it to their supply chain partners. When you have your real-time tracking system, you can easily schedule a suite. This additional integration can help in covering the whole value chain.

Importance of Supply Chain Visibility

Modern supply chains are very complex in most cases. According to the statistics, supply chain complexity is unignorably when supply chain visibility is considered. A lot of companies also had the misconception that their company could achieve complete visibility over internal, inbound, and outbound aspects of the supply chain. Moreover, the surveys were all unanimous and most companies viewed the importance of improving supply chain visibility for availability and on-time delivery. In addition, companies with full supply chain visibility achieved a higher EBIT on average.

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3 Learnings for More Diversity in Supply Chain

Although the pandemic caused significant damage to the supply chain and logistics, supply chain organizations couldn’t stop staying committed to diversity, equity, and inclusion also known as DEI. Supply chain organizations are holding larger companies and depicting a solid representation of people of all colors. The main focus areas for diversity in supply chain are recruitment, learning, and development. These three areas are keys to DEI’s success.

However, the pandemic didn’t leave a chance to disrupt supply chain operations in the workplace and production units. But high levels of dedication and motivation of supply chain organizations and their employees didn’t stop them from working for their companies’ sustainability. The recent work survey by Gartner Research and the Association for Supply Chain Management released a report on the current state of DEI in supply chain. 

Dana Stiffler, VP analyst at Gartner, said that:

“Our 2022 results find that supply chain organizations show strong intent to encourage inclusion, diversity, and equity, especially for women and marginalized racial and ethnic groups. However, we also see a chasm between global, publicly held companies and the rest in terms of commitment and results.”

Scarcity of working talent:

Supply chain organization heads are currently dealing with an extreme shortage of working talent. To hunt for new talent, leaders need to closely reassess and evaluate candidates’ DIE’s commitment and relevant knowledge about supply chain management and logistics.

A study on diversity, equity, and involvement in the supply chain from Gartner in 2022 was conducted on a global level. This survey releases a report which stated three primary learning keys and methods for the respondents in Canada and Europe.

Learning No. 1: Big and global companies should lead the way

The major difference between global companies and smaller companies is the amount of commitment, interest and dedication of their employees. Besides these three factors, their pay equity is equally important. The reason behind this disparity and misbalance is a large amount of scrutiny that global firms face from their big financial investors and regulators. Their essential stakes are involved in the company; hence, if they wouldn’t scrutinize it, they have to bear potential losses.

However, color representation is better in all aspects of global companies. According to the data, 45% of full-time supply chain employees in international organizations are people of color versus 40% in their small peers.

Learning No. 2: Goals and prompt accountability are key to success

This does not mean supply chain team heads in smaller companies are supposed to make little progress in their respective firms. Everyone should work to their maximum capacity and implement the finest methods of supply chain sustainability which will result in DEI success. 

Goals ultimately need a working and active implementation of ideas. This is one of the working keys of global companies. Larger organizations have three times more fixed DEI initiatives. These organizations enhance and try to grow DEI outcomes at equal priority as other business goals. 

Learning No. 3: Recruitment should be an investment priority.

After you have understood your DEI goals, your immediate next step should be on how to accomplish those goals. With this, you also should realize how powerfully you can implement your DEI initiatives. Recruitment, learning and development, and employee engagement are essential aspects of supply chain organizations. Recruitment initiatives should focus on various interview panels and diversity referral programs.

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Metal Price Hike in US Amid Shipping Cost Surge

Rising prices of raw materials used for electrical appliances like refrigerators, microwave ovens, motorcycles, and plumbing tools depict no clear signals of lower cost because the United States supply chain crisis shot up indefinitely. It resulted in an unprecedented metal price hike.

John Gillespie, the current commodity manager of Superior Essex Company, stated in one of his press conferences that he is clearly seeing the significant problems and issues that will accelerate in the country in the upcoming days due to the inflation surge. Superior Essex contributes to supplying a more substantial amount of metal wiring to electrical grids, stations and homes in the United States. John Gillespie said that with the ongoing shipping costs surge across the United States, shipping and logistics of aluminum and copper are highly affected.

Pandemic lockdown also caused a significant rise in the costs of rail freights and trucks to transport things across the state, which indirectly affected delivery timings and caused delays in transporting raw materials to the customers. Manufacturers and owners of production facilities are paying all-time high prices to buy copper, aluminum, neon, zinc and other essential raw metals that are needed for something as large as automobiles and as small as a simple electrical socket at home. The shipping cost of copper and aluminum in the United States is record high right now if we match the data to 2004 when raw materials prices were also fluctuating. Aluminum transport solely makes up 30% of the total metal price.

Ships and boats are stuck in one place for days and rail freights do not have enough working staff and team. Eventually, rail yards are overly crowded with people and raw materials because it also been stuck in about 2000 cars and trucks. The working team is limited and they have to extensively dig it out with man force, which takes longer than usual. The ongoing storm also imparts a ripple effect and customers are demanding raw material but unfortunately, the material is not even present there anymore. 

Supply chain surge is all over the news bulletin and headlines these days stating that inflation surge is a rebound consequence of pandemic and key commodities prices are at record-highest right now which never happened in more than fifteen years. The reason for inflation is the limited supply of raw materials due to the ongoing pandemic. Federal and regional governments are trying to take immediate action on this matter but seems like things are out of their hands too. They are attempting to reduce the inflation surge and hoping that moderate hang-ups will help in smoothing out the stock market in the year 2021-2022. 

According to Fast markets, the premium price range of copper jumped up to almost 10 cents per pound which is nearly 25% higher than what it used to be back in 2004. Consumers who used to buy copper via Comex in the Midwest of the United States are paying double the rates after the pandemic to buy copper for the same quantity.

The cost surge is even worse and economically unbearable for aluminium. Over 50% surge has been recorded in aluminum rates in the past three months. Customers are paying an additional amount of eight hundred dollars per metric ton and the raw material price of 4000 per ton. Customers who buy aluminum from the London Metal Exchange in the Midwest of the United States are facing a surge of almost 40-50% over premium prices of aluminum.

As the year 2021 tapered off, the overall pricing of industrial metals came down drastically but another wave of inflation was observed with the discovery of the omicron variant. This developed even more pressure on the already shambled supply chain. In late January, a record increase in the price of industrial metals was observed.

Production owners and metal traders released an official statement in which they said that aluminum and copper are now available; however raw metals are not in an adequate quantity and place to be utilized due to the limited functioning of trucks and rail freights. Canada is one of the largest aluminum suppliers and makes up almost 60% of the aluminum supply to the United States. For that very reason, truck drivers across Canada and US were motivated to get vaccinated and be more active at work but somehow this twisted the matters even more.

Jorge Vazquez, a managing director and researcher at Harbor Intelligence, said it is highly likely that shipping rates and logistics will come down to the standard pricing range by the last six months of this year. The apparent reason for this decline can be the dissipation of logistics gradually. Harbor Intelligence also said Federal Reserve would revise its monetary funding policy and increase interest rates.

Jay Richman, the founder of New Jersey-based E.W. Berger & Bros., said that his company and relevant product services have to wait almost three to four months to deliver their delayed orders in time. He also added that according to last year’s data, their orders were delayed about seven to eight weeks and before the pandemic, the waiting time was around one to two weeks.

In one of his latest press conferences, Richman said that his company receives copper in pieces. If the company asks for 700 pieces, they will only receive 70 pieces, sometimes even less than that. There is no betterment so far. Richman is one of those manufacturers who buy from domestic and local sellers like Amtrak. Richman’s company suffers from a downfall because of the inflation surge and lack of raw materials.

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What Do Supply Chain Trainers Say About The Present – NESCON

NESCON is a yearly one-day virtual summit for the supply chain industry, including instructional sessions from leading supply chain trainers, including economy, leadership, procurement strategies/tools, and operation/logistics tools. The conference for this year will be placed on October 3, 2022. It has been happening every year since before 2008 and has proved to be beneficial for business owners globally.

Here is a list of some key benefits:

  • Don’t worry about your training budget because this conference is free!\
  • The keynote speakers are expert supply chain trainers
  • Learn about the most recent cutting-edge issues, trends, and technologies in the field of supply chain management (SCM)
  • Assist your company in transforming its supply chain into a proper value chain.
  • Transform your creative ideas into readily implementable and practical solutions for you and your company.
  • Take advantage of a quick return on your time and your organization’s money.
  • Earn 5.0 CEHs towards your certification or recertification.

Provocative keynotes and expert technical presentations on present economic situations and uncertainties that affect trade and job growth, new adaptive practices in business operations, technological projections and roadmaps for 2030, and expert insights into the future workforce and customer-driven organizational transformation are among the topics on the NESCON agenda.

Kenneth Glasser, the NESCON executive chairperson/producer, while talking about NESCON, said: 

“The supply chain community’s purpose for this summit is to inform regional producers and retailers on trends that will have a substantial influence on businesses. We will present the greatest ideas and techniques to senior decision-makers, as well as create a forum for them to learn about and address the urgent requirements of the dynamic supply chain network. Our thriving community has accepted these once-a-year summits, which bring together elite thinkers and doers, even if they are held online. The free and virtual nature of the summit has rendered it very approachable to all supply chain trainers.”

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Supply chain disruptions reported at Ports nationwide.

How Supply Chain Disruptions Are Affecting Different Ports:

The nearby Port of Long Beach saw a 7.55 percent year-over-year decrease in December, handling 754,314 cargo versus 815,885 in 2020. The port moved about 15.7 percent more TEUs than the previous year, with 9,384,368 TEUs compared to 8,113,315 TEUs. Long Beach exceeded 9 million containers for the first time in 2021, and volume has more than doubled since 2003.

“In 2022, I’m looking forward to boosting productivity by accelerating our transition to 24/7 terminal operations, adopting data-sharing technology for our industry partners, and continuing infrastructure upgrades,” said Mario Cordero, Executive Director of the Port of Long Beach.

The Port of Oakland closed in 2021 with an 18.6% drop in December, handling 169,659 cargo compared to 208,339 the previous year. Last year, the port processed 2,448,243 containers, down from 2,461,262 the year before, a 0.5 percent decrease.

Although the port officials have claimed that the success of Southern California ports and soaring international shipping charges have greatly contributed to this decline. Despite the unloading delays in Los Angeles and Long Beach, it is still much more profitable for shipping companies to travel directly to their base locations in Asia and return to the US rather than making a stop at Oakland.

“We’re pleased that our import business has stayed strong,” said Bryan Brandes, Maritime Director of the Port of Oakland. “Right now, our focus is on resolving supply chain disruptions that have harmed our export customers.”

The combined ports of Seattle and Tacoma, Wash., increased by 12.5% year over year, handling 3,736,206 containers compared to 3,320,379 last year.

Port Houston had a successful month as well, processing 303,204 cargo, up 9.7% from the 276,443 in December 2020. Last year, the port processed 15% more containers than the year before, with a total of 3,453,226 compared to 3,001,164 in 2020.

Condition Of The Supply Chain Improvements At Port Of Los Angeles:

Supply chain improvements at the Port of Los Angeles are under threat as Rail issues, increased container dwell time and backlog of ships from China continues to be a major issue. But, despite this ongoing crisis, port authorities and union leaders believe that the situation is under control and a surge of cargo can be handled efficiently.

In March, cargo volumes were somewhat higher, with 958,674 TEUs passing through the docks. That’s up a smidgeon over last year, and the port concluded the first quarter with volumes up 3.5 percent year over year.

Following a solid March 2021, the increase in cargo was unexpected, according to Port of Los Angeles Executive Director Gene Seroka at his virtual monthly briefing. He attributed the increase in tonnage to enhanced dock fluidity and increased labor availability due to COVID-19 requiring fewer dockworkers.

The nation’s largest port, Los Angeles, processed a record 10.7 million 20-foot-equivalent containers by the end of the year. While official December figures aren’t yet available, port personnel are anticipated to have moved 800,000 containers. The volume for 2021 surpassed the previous calendar year’s record by 13%. For this Gene Seroka, credited and appreciated the work done by the longshoremen and other workers who worked day and night to unload hundreds of vessels.

Covid-19 And Its Effects On Supply Chain Improvement:

Many dock workers have lost their lives to the global pandemic of COVID-19. COVID restrictions and lockdowns all around the world have caused a reduction in the available workforce which has resulted in delayed clearance of cargo vessels, which has resulted in a worldwide cargo backlog.  

Bargaining with the ILWU is underway ahead of the expiration of the union’s contract on July 1. In a pre-recorded, waterside interview, Willie Adams, ILWU International President, and Frank Ponce De Leon, ILWU Coast Committeeman, joined the port executive during the briefing. Indicated Gene Seroka.

More than 40 people have died from COVID-19 during the outbreak, according to both union leaders. They urged bystanders who were worried about the negotiations to stay out of it.

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How Supply Chain Trainers Suggest Communicating Delays

Communicating Supply Chain Delays Better To Customers

Contrary to popular belief, supply chain trainers emphasize on maintaining happy customers, as it is the most important factor that can influence your brand’s image online. It is not only about being the best in your field, but also ensuring that your customers know your worth. 

Many businesses are great at manufacturing better quality products than their competitors, but lack a strong customer-interaction team, which gives them a hard time to secure their place in the market.

When you are lacking behind at some point of your supply chain, the customers want you to acknowledge the circumstances they face and wait for a clear, reasonable answer. Failing to do so, obviously, results in customer dissatisfaction and poor customer experience. 

In this blog, we will talk about tactics to communicate supply chain shortages and delays to your customers in a healthy way.

  1. Role Of Supply Chain Leaders:

Many businesses fail to understand the need for honest, straight-forward communication. While customer-management teams are the frontline communicators, there must be a collaboration between supply chain leaders and customer-care specialists in any event of disruption.

The customers may not welcome the shortages and delays, but they will always appreciate your transparency which drives more credibility to your brand’s name. Supply chain trainers can provide more authentic, real-time information about the issues that can provide a better customer experience, and hence more satisfied customers.

  1. Key Practices To Employ At All Times:

The most important practice is cross-functionality. Bring the supply/demand planners, logistics, marketing, and manufacturing teams all at one page to get a better visibility of which customers are served and which are not. The impact of imbalance is best recorded when all the teams are working together, and hence helps in delivering a unified image/answer externally when a disruption hits.

Another key is to set priorities. You may use a variety of priority techniques, such as first-come, first-served or priorities based on marketplaces or profitability. The key is for the management to support best use of resources both internally and with customers, establish clear guidelines, and align on the core values.

Last, but not the least, develop tailored messaging for all accounts. The reach differs between top-tier and low-tier accounts, hence the communication should be done accordingly. Post proper updates, brief regularly about how you are working to mitigate the issues, and how soon the problem will be resolved; ensure that you keep the customers in loop!

  1. Transparency – Do, Or Don’t?

Transparency is a 100% do, but the extent must be clearly defined. Various businesses struggle to find the right balance between what to tell the customer and what not. Customers should know if the problem’s root cause is under control and manageable, or not.

However, ensure that they have faith in your capability to proactively handle interruptions throughout the entire supply chain. Inform your clients of the steps you are currently taking, and keep them informed of any long-term strategy or investment adjustments that can assist reduce risk. That is how transparent you should be!

Best Way To Go About A Delay:

There is no universal method that works for all consumer communications. Customers differ in their choices for frequency and format. Count on sales to communicate with clients frequently to comprehend their preferences. 

Supply chain trainers suggest ensuring that all your teams are working together and give off a positive brand image altogether by communicating appropriate information at the right time – both internally, and externally.

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How Did Supply Chain Disruptions Affect Supply Chain Management Jobs

We are well aware that supply chain disruptions was at its peak with the outbreak of Covid-19. While we will be discussing the challenges and risks the supply chains witnessed, we will also be talking about supply chain management jobs. Usually, this role is a significant one. Every company tries its best to have the best supply chain management team onboard. However, as the disruptions increased, there was a noticeable decrease in management jobs. 

Covid-19 did not just cause a small scale turmoil. Rather, it affected people globally – from the rich to the poor, no one was able to secure themselves from the impact of it. We noticed big differences in consumer behaviours. For example, the sales of sanitary, and health-related products and equipment witnessed a new milestone. Similarly, many people avoided buying snacks, carbonated drinks, and other such items which disrupted the supply chains of that sector. 

All the consequences of covid-19 resulted in the following supply chain challenges:

  • Supply chain operations have started to get more expensive. Sometimes, the global and e-commerce expenses for a firm are one of the greatest costs.
  • Due to the newly formed societal implications, the supply chain activities and operations do not meet the stakeholders’ expectations. Environmental conditions are also a drawback.
  • Due to a huge number of deaths, and infected employees, we noticed a shortage in talent in supply chain operations. This lack results in heavy reliance on manpower.
  • Due to global disruptions, the supply chain lacks resilience.
  • Flexibility in businesses witnessed a shortage as well. The raw materials, machinery and manpower are all the factors that affect the provision of customization and personalization facilities to consumers.
  • The outdated IT systems still rely on older technologies, due to which they are not credible, and efficient.

How Can The Federal Trade Commission Act To Fight Against The Pandemic?

The federal trade commission act has remarkably protected citizens’ rights through hard times. The Federal Trade Commission does not work on investigating businesses only but also tries to strengthen the government’s efforts for the betterment of the country’s economy. Needless to say, a stable economy is beneficial for both consumers and business owners. 

However, with time we have noticed that FTC has been rewarded with increased authority and power, which drives us to the question “how will the federal trade commission respond to supply chain disruptions?”

FTC has started a formal process through which they have requested all mega-retailers, wholesalers, and consumer products suppliers to share relevant information. FTC aims to use this information as a case study to find out the reasons behind this supply chain disruption. The orders by FTC require the companies to detail the primary factors preventing them from buying, transporting, and distributing their products. Plus, the impact of postponed and canceled orders, price hikes, and the commodities, suppliers, and components that are most affected. Furthermore, it should also include the initiatives these businesses are taking to lessen disruptions. At last, the businesses should discuss their strategy of allocating the products in their retail stores, especially those that are in scarce supply.

Through such steps, the Federal Trade Commission is trying its best to ensure that the supply chain disruptions turn into progress, as soon as possible.