Supply Chain Strategies for 2022

Posted by Land Link Traffic Systems on Dec 28, 2021 3:42:15 PM

These last two years have presented both logistics planners and provider with the most volatile supply chain environment in decades. Supply chains have been severely impacted by COVID-19.  A recent Statista survey found nearly 72% of businesses suffering detrimental effects related to the pandemic. Now, even as disruptions persist, supply chains the world around have begun picking up the pieces and charting new territory to recover. Here are some strategies a qualified 3PL can help you deploy to manage what may be ahead.

Supply Chain Elasticity

The past year has shown more than ever that supply chains must be responsive and flexible in order to deal with market fluctuations and unforeseen outside influences. The days of reducing inventory to the furthest possible degree may be ending. Instead, organizations will need to respond to growing volatility in consumer behavior with “elastic” strategies — the flexibility to expand and contract capabilities to meet demand within a given time frame.

The concept of elasticity is especially useful when companies come to recognize supply chain execution as an end-to-end process, starting with order entry and extending through procurement, manufacturing, inventory and warehouse management, and transportation and distribution. When implemented successfully, an elastic supply chain can scale up or down, even with the most unanticipated patterns of demand. It can help to reduce costs, improve service, minimize risk and enhance a company’s competitive edge.

Objectives and Key Performance Indicators

Objectives and KPI can play important roles in operationalizing supply chain strategies. Measuring what matters is crucial to the success of any business, regardless of whether it’s embracing new trends and technologies. KPI's allow companies to focus on measurements that matter and eliminate those which have no impact on supply chain performance. Most companies, in fact, do not have the proper measurements and KPI's in place necessary to drive intelligent business decisions and to serve as support to the policies that are relied upon to drive day to day business activities.

Some Long-Range Supply Chain Predictions

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. Here are IDC’s worldwide supply chain predictions for 2022 to 2026. These predictions support our position that manufacturers will need to improve operations through the use of technology. The treacherous part of this path is identifying the weaknesses in your organizations supply chain protocols and implementing the most solution.

  1. By the end of 2022, half of all manufacturing supply chains will see the benefits of supply chain resiliency, resulting in a 10% reduction in disruption impact.
  2. By 2023, 50% of all supply chain forecasts will be automated through the use of artificial intelligence, improving accuracy by five percentage points.
  3. By 2024, to improve long-term supply chain profitability, 70% of manufacturers in global supply chains will invest in software tools to support sustainability and circular economy business models.
  4. By 2025, 30% of all direct procurement transactions will be based upon capacity availability instead of units or volume.
  5. Resulting from pressure to improve service, by 2026, 60% of Forbes Global 2000 original equipment manufacturers will establish a service parts control tower approach, increasing first-time fix by 35% and shrinking spares inventory by 12%.
  6. By the end of 2022, chronic worker shortages will prompt 75% of supply chain organizations to prioritize automation investments resulting in productivity improvements of 10%.
  7. To improve delivery speed, agility, and visibility for business-to-business and business-to-consumer customers, 35% of manufacturers will invest in order management software by 2024, resulting in a 25% improvement in on time and in full (OTIF) fulfillment.
  8. By 2025, 40% of Forbes Global 2000 organizations will invest in supply chain systems to increase information and inventory velocity to improve last-mile delivery efficiency and boost customer experience.

The transition to the digital supply chain has been ongoing. The application of Artificial Intelligence, Robotics, Block Chain Technology, and the Internet of Things are all finding their useful applications in the worldwide supply chain. The acceleration of these technologies has been greatly advanced by the Covid-19 pandemic. Make the commitment today to start planning for 2022. Contact us at today to get started on your supply chain planning for next year.  

Stay Safe Everyone.

To stay up to date on these and other Logistics topics subscribe to our blog @

Michael Gaughan
Technology Officer
Land Link Traffic Systems


Topics: Supply Chain Management, Third Party Logistics, Transportation News, Reducing Freight Rates, Logistics Business, Maximizing Routing Efficiencies, Logistics News, Industry Trends, Technology