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Supply chain issues currently in the business world

Partner Contributor by Partner Contributor
February 10, 2022 - Updated on February 11, 2022
in Business News, Consumer Alerts, Consumer Watchdogs, Financial News
Reading Time: 3 mins read
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One of the biggest problems that the business world is facing today relates to supply chain issues. These started to build up during the shutdowns and disruption that came with the pandemic.

But even as the world has started to open back up, the supply chain challenges persist. We’re going to take a look at some of the specific issues that businesses are having to face right now.

Digital integration

The whole logistics and supply chain industry has been adopting digital processes. IoT technology has been adopted at a greater speed than ever over the last few years. But with anything brand new and different, there are teething problems and issues.

Businesses try to integrate new technology in different ways and at different speeds. Paired with the pandemic, this has caused problems for some businesses.

Congestion and backlogs at ports are slowing down business

Ports are busier than ever before as businesses wait on their order going back months or even longer to be shipped to them.

business

In many cases, there’s a shortage of the hardware and infrastructure needed to lift and move shipping containers. That’s one of the things that’s slowing things down massively at the moment.

Progress is being made at many ports, but that progress is expected to be slow for the time being.

Scarcity of materials and storage for all aspects of business

There’s still a hangover created by the shutdown of factories and workplaces, particularly in China and Asia, as a result of the pandemic.

There are still intermittent shutdowns and lockdowns as new outbreaks occur. This has led to a scarcity of some materials and components. This obviously has a knock-on effect on the whole supply chain. The end buyer of those goods include businesses all over the world.

Because so many warehouses are being used to store items that can’t be shipped because of port problems and backlogs that are being worked through, there’s also a growing problem of storage scarcity. Many warehouses are running out of space for storage ahead of shipping. There are solutions; for example, they can use a new approach with a pallet rack system that increases the vertical space at their disposal.

Rising freight and transportation costs

Inflation is having an impact on businesses in many different ways, and that’s certainly true when it comes to freight and transportation costs. As there’s a huge increase in demand for these services post-pandemic, it means that prices also go up. The world is going through a period of inflation on top of that industry-specific increase in demand, meaning that prices are going up for most logistics and transportation services at the moment. And that’s something businesses have no choice but to contend with.

As you can see, there are plenty of supply chain problems that are still lingering over businesses across many different sectors and industries. Most of them are powerless to do much about the problem other than to wait them out and look for new opportunities that cut delivery time estimates.

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