Global supply chains face various difficulties and risks that can disrupt the flow of goods and materials around the world. These challenges can arise at any stage of the supply chain, from raw material procurement to last-mile delivery.
There are many potential causes of global supply chain disruptions. And the most effective way to deal with global supply chain disruptions is to have a comprehensive risk management plan in place. This plan should identify the potential challenges that could affect the supply chain and should put in place mitigation strategies to reduce the impact of these risks.
From 2020 to 2027, the worldwide supply chain market is projected to expand at a CAGR of 11.2%. Accordingly, the market will be worth $37.41 billion in 2027 as opposed to $15.85 billion in 2019. Hence, the market continues to grow despite the obstacles put forth by the post-pandemic world.
In this blog, we are going to discuss what the global supply chain challenges are and which are the 6 logistic startups that are efficiently tackling the global supply chain challenges. Businesses can overcome these challenges by hiring experienced 3PL partners that can provide ecom shipping solutions easily.Â
Global Supply Chain Challenges
There are a few global supply chain challenges listed in this blog that are tackled by e-com shipping companies.
- Port Congestion
It has become a major problem for many businesses. This can lead to late deliveries, frustrated customers, and lost revenue.
There are a few things that businesses can do to mitigate the risk of port congestion. First, they should try to work with suppliers who are located near major ports. This will help to ensure that goods can be shipped quickly and efficiently. Secondly, businesses should try to ship their goods during off-peak times. This will help avoid congestion at the port. Finally, businesses should work with a freight forwarder who has experience dealing with port congestion.
- Increase in Freight Costs
Rising freight costs are a major concern for supply chain managers. These costs can have a significant impact on the bottom line, and can also lead to disruptions in the supply chain. Two major factors to rising freight costs:
- The fuel price has a direct impact on the cost of transportation, and this cost is passed on to the shipper in the form of higher freight rates.
- In addition, the cost of labour is also a major factor in rising freight costs. Labour costs have been on the rise in recent years, and this trend is expected to continue. As a result, carriers are passing on these higher labour costs to shippers in the form of higher rates.
- Labour Shortage
These shortages have had a significant impact on businesses, particularly those in the manufacturing and construction industries. The most common cause of these shortages is an increase in demand for goods and services. This can be due to economic growth or other factors, such as natural disasters.
- Inflation
When it comes to inflation in the supply chain, there are a few things to keep in mind. First, inflation can have a major impact on the overall cost of goods and services. This is because as prices rise, the cost of inputs also tends to increase.
In addition, inflation can also lead to higher transportation costs and other indirect costs. As a result, it is important to carefully monitor inflationary trends to make sure that your supply chain operations are not adversely affected.
Six Logistics Startups that are Tackling Global Supply Chain Challenges
Following is the list of 6 startup e-com shipping solution companies that are efficiently tackling the global supply chain challenge. They are making domestic and cross-border shipping effective and prompt by using a well-planned shipping strategy. This avoids the problem of port congestion. They have also adopted a few different ways to measure inflation in the supply chain like Consumer Price Index (CPI) or Producer Price Index (PPI), etc.
- Hive
Hive is a German supply chain company that helps businesses with warehousing services. It also provides fulfilment services for packing and delivering goods to business customers. Their warehousing system can be used by businesses to quickly get into operation by integrating their current e-commerce stores. Hive manages all aspects of inventories, orders, and refunds, giving businesses comfort and assurance.
- NimbusPost
NimbusPost is one of the leading Indian companies for e-com shipping solutions. It offers logistics, shipping, warehouse and fulfilment services at the lowest prices. This platform offers 27+ courier partners and uses the latest technologies for integration with marketplaces like Amazon or eCommerce channels like Shopify. It thus solves the issue of port congestion, labour shortage, inflation and other supply chain challenges more effectively than other e-com shipping solution providers.
Their shipping rate starts at Rs 21 per 500 gm for domestic shipping. It covers 29000+ pin codes across the country. Their International cross-border shipping is also effective for making quick deliveries possible in 2 days for Rs 215/50 gm.
- Orbital Insight
The world leader in Geospatial Analytics, Orbital Insight is another renowned company for providing e-com shipping solutions to businesses that face supply chain challenges. The self-service analytics platform from Orbital Insight helps clients including Unilever, Airbus, RBC Capital Markets, The World Bank, and the U.S. Department of Defense make better business decisions, create sustainable supply chains, and enhance national security.
- Upparel
Upparel is a logistics company that helps businesses with their shipping and logistics needs. Their variety of services helps businesses streamline their operations and save money. It has a team of experts who can customize a solution for your business, no matter what your shipping and logistics needs may be.
- Trackonomy
Trackonomy is a company specializing in transportation and shipping services. Their services are designed to meet your needs, whether you’re shipping domestically or internationally. They have a team of experienced professionals who are ready to assist you with all your shipping needs and tackle all the challenges of supply chain management better. It is a little expensive but is dependable for e-commerce shipping solutions.
- Cogoport
Cogoport is a digital freight logistics company that provides importers and exporters with end-to-end global digital freight solutions, including transportation from warehouse to warehouse. The marketplace and aggregation principles are the foundation of their business model. The business also provides value-added services including analytics for shipments and delivery procedures and real-time tracking.
They are an international market for logistics data that helps its customers manage end-to-end freight logistics.
Conclusion
A well-designed risk management plan will help to ensure that the supply chain can continue to operate smoothly despite global supply chain challenges. By having such a plan in place, companies can minimize the impact of disruptions and keep their businesses running smoothly.
