One of the biggest issues the world is currently facing is the global supply chain crisis. Even in developed nations, there are food shortages and consumers are fighting each other to grab their products off the shelves.
As a result, many entrepreneurs are worried about how to manage the global supply chain and how it’ll affect their business.
This article will look deeper into the issues facing the global supply chain and possible solutions to reduce them.
Here’s what you need to know about global supply chain issues:
What Is the Global Supply Chain?
The supply chain refers to the method and logistics of transporting goods from one area to another. The global supply chain is an international supply chain where countries import and export their goods to foster the global economy.
As one can expect, it’s crucial for the global supply chain not to be interrupted. At it’s worst case it can mean that there are food shortages and even famine! This is a current issue going on with the world’s wheat supply.
So what are the major challenges facing the global supply chain?
Thanks to fast shipping and delivery times from eCommerce stores there’s a greater expectation for fast delivery times in the global supply chain.
If your business focuses on global supply chain you must focus on increasing your delivery speed. For example, you might wish to focus on truck transport for domestic deliveries. If available, you should consider drone delivery for domestic orders.
Air transport is superior to freight transport. The latter should only get used if there isn’t sufficient space on an aircraft to transport goods.
Political and Legal Changes
These changes are often unexpected and can be the greatest hindrance to a global supply chain.
For example, some companies will have to deal with increased delays and additional fees and permits to deliver goods from the EU to the UK following Brexit.
On the other hand, additional regulations and taxes imposed by the EU can lead a company to focus on handling bureaucratic needs rather than delivering goods!
One wants to ensure that one’s supply chain company deals with favorable jurisdictions. For example, many cruise companies register their ships in Liberia due to that country’s lax regulations.
In our globalized world, we have to find ways to communicate across cultures and languages. A global supply chain company must hire employees who can speak multiple languages.
Those employees must also connect with other cultures. This ensures that there are no communication issues when transporting goods internationally.
Improve the Global Supply Chain
Now you know how the global supply chain works and what serious issues you’ll have to face.
You’ll have to first find ways to improve your delivery times. Often, eCommerce businesses give us the best ideas on how to expedite delivery speeds.
Make sure you keep abreast of political and legal changes. Start your company in a more favorable jurisdiction. You should also hire employees that are multilingual and understand different cultures.
You can find more business advice on our blog.