Brands and retailers rely on the supply chain so that they can continue to operate and get products to customers. However, with fresh challenges, a cost of living crisis and many other factors getting in the way, the supply chain for many of these brands is struggling, which is impacting operations all over the globe.
The supply chain in the UK has been in crisis since 2021 and in the year ending June 2022, it was estimated to have cost small and medium-sized businesses £3.9 billion, which only begins to highlight the magnitude of these issues.
If you’re currently dealing with supply chain issues or would just like to learn more about this issue that is ravaging profits all across the globe, then we’re here to help. We’ve prepared a detailed guide on the state of the supply chain in 2023 and information about why it’s like this. Plus, we’ve highlighted some of the ways that you can reduce or divert these issues from hitting your business any harder now and in the future. Read on to find out more.
The state of supply chains in 2023
Last year saw manufacturers and suppliers all over the world faced with never-ending doubt that they could fulfil orders and deliver with stock shortages, long backorders as well as delays in fulfilling orders but many still managed to stay afloat. Unfortunately, the same issues are predicted to persist for the rest of this year too.
The main reason for this is due to customers spending more money. These new orders combined with the need to catch up on last year’s orders means the supply chain will likely be stretched for the rest of the year. However, with so many inefficiencies coming into light during this trying time, the future may look brighter with new ways of working being developed to prevent this issue from happening again.
What are some of the other challenges?
Aside from the previously highlighted issues, these are some of the main reasons for supply chain struggles in 2023:
- Material shortage
- Higher freight prices
- Port congestions
- Inflation
How can you pivot and respond to these challenges?
If you’re part of a supply chain, be that a manufacturer, supplier or brand and you’re facing these challenges, then you may think the future is looking bleak. However, the following tips may prove to be the solution you’ve been looking for in solving your supply chain challenges:
- Use a reliable same-day courier service to fulfil orders on time and at speedy rates
- Ensure you have access to flexible cash available at all times to pay for priority manufacturing when needed
- Find alternative shipping ports
- Improve demand forecasting to get ahead of orders
