Whether you focus on business-to-business fulfillment, specialize in retail orders, or mainly provide products through direct-to-consumer sales, it’s always essential to keep supply chain issues top of mind.
From inflation and changes in consumer behavior to international conflicts wreaking havoc with supply chains, and problems with extreme weather delaying shipments, there are many issues for your team to be aware of and overcome, so you can better manage the intricacies of your current supply chain.
The Top 2024 Supply Chain Issues
The supply chain issues 2024 has experienced affect companies ranging from small startup businesses to the largest enterprises shipping products around the globe. The better you and your colleagues are at addressing various supply chain problems, the faster you can deliver products, keeping customers happy and satisfied.
With that in mind, here is an overview of the top supply chain issues for 2024, followed by some tips to help you address these issues in 2025.
Inflation and Consumer Behavior
With mounting inflation, consumers adjust their behavior and may stop buying items that they’d like to purchase but do not necessarily need. Or, they do continue to purchase their usual products, but less frequently or in smaller amounts for each sale. Meanwhile, because of inflation, your organization may need to control costs and order less expensive parts and supplies too so you can maintain a healthy bottom line while still meeting customer demand.
Geopolitical Conflict
With unpredictable conflict and wars, you may experience sudden shortages of materials and parts in locations that you once considered stable and always open for business, despite your careful planning. When war closes down ports and forces suppliers to take longer routes that require more time to travel, you should anticipate higher costs to deliver your goods.
Tariffs and Trade Policy
Your company is subject to expensive tariffs if the government makes changes to its trade policy with other nations, which can act like a tax on the goods you need to import. One policy currently under scrutiny is a tariff law loophole from the 1930s. This exemption allows packages valued under $800 to enter the United States without shippers paying import duties and with less scrutiny than larger shipments. However, this rule is subject to change at any time, potentially increasing costs for companies dependent on low-cost international imports.
E-commerce companies may be particularly vulnerable, especially if they rely on goods from a single country instead of diversifying supply chain partners. In response, many companies are turning to onshore suppliers or expanding their network of international suppliers to reduce their risk exposure to tariffs and potential new regulations.
Extreme Weather
You must be prepared for more extreme weather events, which can destroy factories, displace workers, and harm transportation channels, such as damaged highways or ports. A hurricane 1,000 miles away from your company could have a devastating impact on your ability to receive materials as well as distribute your products.
Increased Freight Prices
Freight costs will increase in response to conditions such as rising fuel prices and a lack of skilled labor in the freight industry. You need to be aware of higher freight prices and prepare to budget your shipping expenditures accordingly.
Port Congestion
When ships carrying freight arrive at a port already operating at capacity, they cannot unload or load. This leads to congestion that may delay your receiving products or prevent you from distributing your goods for an unknown period of time. Sometimes, the most suitable response is to resort to air carriers when you cannot rely on ports to handle your freight.
E-commerce and Consumer Channels
It pays to meet your customers where they are and to communicate with them using their preferred channels, especially for e-commerce sales. Adopt an omnichannel approach that lets you communicate with them via voice, email, or text messages. Remember that most customers will want to see real-time status updates about their shipments through these communication channels.
How to Overcome These Issues for 2025
As we head into the new year, you’ll need to be prepared to overcome these supply chain issues in 2025.
Diversify Sourcing Strategies
When raw materials, parts, and other items are in short supply, you can address the problem by diversifying your vendor network or suppliers. When you have multiple suppliers to rely on, you can exercise options if one of them experiences shortages. In the face of a disaster, global pandemic, civic unrest, or labor issues, you may able to continue operations because you made an effort to diversify vendors.
Use Alternative Shipping Ports
Research alternative ports so you can meet your scheduling requirements, even if there is an issue at your primary port, or when a port is overwhelmed and you have to fulfill a growing number of customer orders due to unexpected product popularity or seasonal demand. The goal is to protect your company against congestion at one port that could dramatically delay shipments.
Improve Demand Forecasting
Harness automated systems that use analytics to examine historical data in conjunction with current situations so you can do a better job at forecasting demand. An automated system can process much more information than people can, from a variety of sources to assist you in keeping up with new consumer demand.
Remain Flexible
Avoid complacency and strive to operate with flexibility so you can react to emerging conditions that would threaten your ability to deliver products on time. Maybe it’s time to check your inventory and determine which products are well-suited for bundling together. That’s better than keeping unused dead stock on the shelves. Offering discounts can also help you free up space in the warehouse.
We’re Your #1 Logistics Partner
You can count on the professionals at B&C Logistics to be your #1 logistics partner. With our many years of experience in third-party logistics services, we’re standing by when you need to outsource shipping, especially when there are uncertainties in the supply chain.
We will be happy to advise you on tactics such as diversifying your sourcing strategies, using alternative ports, and helping with better demand forecasting.
For more information on our 3PL expertise or to get started with improving your supply chain, please contact us today.