Contrary to reports that the supply chain crisis is easing, a new DispatchTrack study uncovered the vast majority of supply chain professionals (72%) are still experiencing significant challenges across the organization with fuel costs topping the list of obstacles followed by inflation and various delays outside their control. And those issues are expected to continue over the next six months. Nearly half of respondents also expressed fear over losing business due to the economy.
“The current economy is definitely having an impact on businesses and creating a wide range of supply chain challenges. That’s why it’s never been more important for businesses to deliver an excellent customer experience and preserve customer loyalty. Compromising service just isn’t worth it,” says Satish Natarajan, DispatchTrack co-founder and CEO. “Investing in the right systems and technology is absolutely key to being more cost-efficient while staying customer-centric. Ultimately, that’s key to weathering supply chain challenges.”
From PR Newswire:
- Inventory supply remains a concern among supply chain organizations, with one in three still grappling with inventory shortages while one in four are contending with oversupply.
- The data also signaled that supply chain leaders expect ongoing increases in operating costs. Six in 10 expect operating costs to be 10-20% higher this year than in past years. This likely explains why four in 10 businesses plan to increase fees to keep up with inflation and one in 10 are limiting warehouse space due to rising interest rates.
- Despite current challenges and feelings of uncertainty around future business, the majority of supply chain leaders are optimistic about the future with 61% reporting a positive business outlook for 2023. In the coming year, over half of supply chain organizations plan to accelerate technology adoption (57%) as well as hire more drivers and increase delivery capacity (55%).
- The top challenges supply chain leaders are currently experiencing include fuel costs (59%), inflation (46%), delays outside of their control (41%), unpredictability (38%), driver shortages (32%) and losing business due to the economy (30%).
- The top concerns supply chain leaders anticipate in the next six months include fuel costs (51%), losing business due to the economy (48%), inflation (44%), unpredictability (33%), driver shortages (32%), and delays outside of their control (31%).
- In the coming year, supply chain organizations plan to increase technology usage or adopt new solutions (57%), hire more drivers and increase delivery capacity (55%), add additional warehouse space (31%), and invest more in sustainability initiatives (23%).