September 2022 - Supply Chain: updates and challenges

The entire global supply chain has recently faced many difficulties, largely caused by the ongoing pandemic which has also highlighted how interconnected the world is.

Below are listed five main causes and issues that have influenced the global landscape in recent months.

The electronics and components market, especially those coming from Asian territories and destined for Western markets, is one of the sectors most affected by supply delays. As of today, delivery forecasts for many products could experience significant delays.

However, with a more in-depth analysis, it is easy to realize how interconnected the entire planet is. Just as these issues on the supply of raw materials and products have made deliveries difficult for companies and industries, the entire resulting market is naturally affected, including stores, couriers, warehouses, and individuals.

As a result, not only have related costs increased, but the quantities and availability of various common goods have also changed. On the other hand, the rise in bills and the impact of inflation have potentially reduced demand itself.

Here are five potential problems that the supply chain has had to face and that could substantially influence purchases next winter.

1.

The increasing inflation has seen entire families struggling due to rising prices. Consequently, the fact that many consumers have to cut costs and consumption has led the demand for goods and services into a state of absolute uncertainty. Furthermore, the pandemic has strongly contributed to these changes, making predictions and estimates on the trend of such demand even more challenging in 2022.

2.

The rising cost of living has led workers to demand increases to cope with the impact of inflation on their paychecks.

Consequently, all union actions following this exert direct pressure on supplies. Strikes in South Korea have heavily influenced the supply chain related to the IT sector, as well as railway strikes in the UK causing delays in many deliveries.

The same goes for port workers in both Germany and the UK, leading entire hubs in Ireland to be congested due to strikes at the port of Liverpool. Some unions in the UK are organizing and planning coordinated strikes in the coming months, which would undoubtedly bring further disruptions to the entire supply chain.

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