What Are The Major Supply Chain Issues?

The supply chain plays a major and vital role in the global economy as it is the network between businesses and suppliers to produce and distribute products to end-users. The supply chain is made up of people, entities, resources, as well as information Supply chain issues can drastically affect how businesses and consumers operate around the world. While every business will always have some sort of supply chain challenge, the Covid-19 pandemic created a plethora of new supply chain issues. Let’s take a look at some of the major issues supply chain leaders are facing today!

What Are The Major Supply Chain Issues?

Cost of Transportation

One of the main factors businesses consider when pricing a product is the cost of transportation. A big challenge for the supply chain is to keep the transportation costs as low as possible. If the cost of transporting increases, then this will lead to an increase in costs to the end-user.

End users are constantly looking for the cheapest option or alternatives to the products they are looking for. As a result, this adds pressure to other areas of the supply chain to keep their prices as low as possible in order to make a profit.

Meeting Customer Expectations

As consumers, we have become accustomed to receiving goods quickly. Therefore, supply chains are under tremendous pressure to get products to the consumer fast enough to meet expectations. When consumers do not receive their products in a timely manner, they will turn to competitors. Businesses need to ensure that they can deliver the goods efficiently while also eliminating possible issues along the way. Today, many consumers expect to receive goods within two days of making their purchase.

Having Effective Courier Solutions

There are many couriers that offer transportation services to businesses. In fact, businesses, suppliers, and sellers rely heavily on courier services to ensure goods will be delivered to end-users on time. Taking the delivery out of the control of the business and trusting in a separate party to meet expectations can be hard for many businesses. Courier services are under a lot of pressure to deliver goods on time as they have the eyes of both the consumer and competitors on them.

Free Shipping Policies

One of the hardest challenges for a business to compete with is those that offer free shipping. Unlike most small businesses, larger organizations are able to cover the cost of free delivery and attract end-users that are looking to save money. The ability for bigger businesses to offer free shipping puts pressure on smaller businesses to compete on pricing in order to attract consumers.

Additional Information: Why the Pandemic Has Disrupted Supply Chains – Whitehouse.gov

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