Supply Chain Rough Sledding

In the US market, transportation and warehouse costs are going up, up, up. Supply Chain shipper managers are being asked to find ways to save money. There will be thoughts of network changes, carrier changes, and administrative changes.  A period of rough sledding is ahead but let us remember, the issues of the moment, will not last forever.

We are in a period of transportation supply shortage, a era of warehouses being full, and era of market changes in the supply change. How many stories on last mile deliveries, Amazon, robots and blockchain software have you read?  There is no shortage of supply of challenges, are there?

It is appropriate to ask: What can be done to improve my operation? Will spending the money make things better?

When you are going through these issues, remember that time those not stand still.  What happened the last time transportation prices rose rapidly? A few years later, they were dropping.  With US tax cuts, there will be a lot of financial stimulus to the economy. The chances of inflation increases are high. In almost any prosperity, there are the drivers for the next downturn of the economy.

If your business is looking good over the next year, respond to the market. But remember things change and there will be a time when things will not be as good.  Plan for resiliency for those changes.  Meet the challenges of good economy but remember things can change.

 

 

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