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The latest about the rising costs in the supply chain

Jul 17, 2022 | Supply Chain

Lately businesses have been seeing an incredible phenomenon in the supply chain and logistics management, we are talking about the rising costs in the supply chain. The latest in this supply chain news indicate that there are various supply chain problems causing it and various supply chain solutions to survive this era. We tell you more about it.

 

How much did the costs in the supply chain increased?

Just when business and companies were starting to resettle their supply chain network with their inventory’s levels, the cost of supply chain management and logistics management increased about 20% and if we are talking about money is about $1.85 trillion dollars!

 

And what is affecting the supply chain sustainability?

There are various causes to this phenomenon and some of them are not fully related to supply chain problems, it can go from the rising inflation to the rapidly changing consumer demand after the pandemic.

On the other hand, we have direct transportation prices increasing about 22% and inventory costs about 26% compared to 2020 due to also a supply chain strategy of trying to get ahead the disruptions in orders.

It is very important to say that these dramatically changes in the costs of the supply chain were previously expected by the experts in the industry.

 

How do we solve this problem or at least reduce the damages?

In some supply chain news, we have seen that some companies are starting to expect drops in their profits due to high inventory levels and marketing strategies to reduce them and get rid of the costs.

Other solutions that companies are starting to implement is working closely with logistics provider in the area they are developing, geographically speaking.

 

Want to use the solution experts are using?

If your company right now is facing one of the impacts of the rising costs in the supply chain management, then you can also use the solution other are using…the help of a 3PL in Mexico and USA.

With an independent logistics solutions company, you will get your transportation, distribution, international load, storing, packaging and other sections in the supply chain handle by an expert third party.

 

Let us tell you more about our solutions to the supply chain management!

With our solutions, our digital communication channels and our premium service attention lines.

Have more questions about our services? Send them to us! We will be please to answer you.

Don’t forget to follow A&T Supply Logistics, the logistics solution of modern companies.

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