Top Post-Covid Supply Chain Pain Points

IEEPA Refund Calculator Investor Relationship Financial Overview Company Overview Financial Overview Corporate Governance Overview Board of Directors Committees Internal Audit Regulations Shareholder’s Insights Shareholder’s Insights Shareholder’s Report Investor Contact Investor FAQ Contact MyDimerco English繁中简中 Home » Top Post-Covid Supply Chain Pain PointsTop Post-Covid Supply Chain Pain Points by Dimerco | Sep 12, 2023 During the first half of 2023, we asked supply chain executives to name their top post-Covid supply chain pain points. Two emerged as the dominant choices: market uncertainty and high transport costs. All other responses were far down the list. The concern over high transportation costs comes at a time when demand is down and rates are falling. But this survey result is not totally surprising. When consumer demand is soft there is pressure on corporate bottom lines, and that puts a spotlight on controlling logistics costs. The top pain point – market uncertainty – is the real headline of these survey results and provides a strong clue about the characteristics of tomorrow’s logistics operations. Uncertainty is painful, why? Because when markets change, so must logistics operations and freight networks. That’s easier for some than others. Some comments from our survey participants: “Balancing inventory post-Covid has been hard. With market uncertainty, we have been left second guessing more.” “In this volatile market, we cannot execute long-term plans.” Large global companies are at a disadvantage in unpredictable markets that require quick reaction to changes. That’s because change happens slower at such organizations. If market uncertainty is the new normal, then these large enterprises need to figure out how to become more nimble. One way to do that is to align with a 3PL that can move and flex quickly, providing the agile logistics infrastructure required to compete. But be careful here. Some of the largest 3PLs are as slow moving and bureaucratic as their big customers. In this market, don’t underestimate the advantages of speed and agility. When HP needed to integrate data feeds among 30 different suppliers and carriers, Dimerco Express Group (one of HPs global transportation partners in Asia) handled this complex EDI project within 30 days. That prompted HP’s procurement manager to comment that “similar integrations have taken us 2 to 3 months.” To compete in the future, large enterprises must transform their supply chains and distribution operations to adapt quickly to changing market conditions and customer requirements. Agile 3PLs can help. Traditional Supply Chain Planning is Obsolete Uncertainty is also painful because it makes traditional supply chain planning obsolete – plans with suppliers, with carriers, and with 3PLs. When you study the success stories of pioneers like Thomas Edison, Bill Gates, and Elon Musk, all talk about the importance of failing fast. Of scrapping existing plans, recalibrating on the fly and adapting quickly to what the market wants. That need is certainly evident among our survey respondents: “Presently we are reorganizing and relocating to several new markets. That’s got to be done quickly and done well.” “During the pandemic, many companies collapsed because they couldn’t adapt.” When change is the only certainty, logistics operations must be able to support this “change fast” ethos. Dimerco’s eBook on The Logistics of China Plus One includes several examples, including this one: In the face of punishing tariffs and falling market share, a maker of steel equipment for the solar panel industry relocated from China to Malaysia to avoid China-origin tariffs. Dimerco advised the company on local duties, compliance regulations and free trade zone usage in Malaysia and transitioned the operation seamlessly with minimal disruptions. Supply Chain Pain Points Supply chain curriculums inside and outside universities can teach us how to evaluate and plan logistics to achieve the right balance of service levels and inventory – in a predictable world. But they don’t teach us how to build a supply chain and distribution infrastructure that can flourish in an unpredictable world. If market uncertainty is your biggest post-Covid supply chain pain point, you may need a global logistics partner like Dimerco that can turn change into your competitive advantage. Need to connect your Asia-made products and components with the rest of the world? Let’s talk. Post Tags: Air Freight | Asia Pacific | Freight Forwarding | Ocean Freight | Road and Rail Freight | Supply Chain Solutions We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.ACCEPT Cookie settingsManage consent Close Privacy Overview This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience. Necessary Necessary Always Enabled Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously. CookieDurationDescriptioncookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. Functional Functional Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Performance Performance Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. Analytics Analytics Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Advertisement Advertisement Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads. Others Others Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. SAVE & ACCEPT