Supply Chain Delays Replace COVID-19 Concerns: Report

Findings from DHL show that business executive's concerns shift the more supply chain disruptions become prevalent. Most companies are already preparing for the holiday season due to delays.

Adobe Stock 297916104

DHL releases a new report that surveyed United States subject matter experts (SMEs) regarding business planning and operations for 2022. Only 12% expected COVID-19 to their biggest problem this year, exhibiting a decrease in concern for organizations. However, 61% expect supply chain delays to be the biggest challenge, a jump from 54% last year. And, 65% are already planning for the holiday shopping season because of it. 

Per DHL:

  • When asked about what is causing supply chain challenges this year, 42% said logistics costs, 32% said product availability, 15% said Customs compliance and 11% said varying laws in international markets. To overcome these challenges, many businesses (37%) have prioritized making new international business contacts (whether new manufacturers, distributers, etc.), which can help them conduct business and ship more efficiently.
  • In last year’s survey, 50% of the respondents said staffing was not a challenge. This year, more companies are feeling the impact of the “Great Resignation”, with just 38% saying they are not impacted by the talent shortage. To address the talent shortage, nearly one-third of respondents have invested in employee perks/bonuses, 18% are investing in robotics and new tech, and 17% are investing in an online presence vs. brick & mortar.
  • 42% have experienced changes in their international sales due to inflation; 26% have seen a decrease in international sales as a result of inflation and 16% have seen an increase. However, 30% of respondents said they are unaffected by inflation.