NEWS & BLOG
Views: 9 Author: Site Editor Publish Time: 2022-12-28 Origin: Site
Most supply chain managers expect problems to last until at least 2024.
In a business survey of the logistics industry launched by CNBC Dec. 12-19, the survey polled 341 logistics managers over a one-week period at companies including: the National Retail Federation (NRF), the American Apparel and Footwear Association (AAFA), the Council of Supply Chain Management Professionals (CSCMP), the Pacific Coast Council (PCC), the Agricultural Transportation Coalition (ATC) and the Coalition of New England Companies in Trade (CONECT), which participated in CNBC's first supply chain survey.
Its results show that more than half of logisticians believe supply chain problems will not return to normal conditions until 2024 or later.
- 32% of respondents said their supply chains are operating normally.
- 61% of respondents said their current supply chains are not operating normally.
And when asked when normalcy will return,
- 22% were unsure.
- 19% were bullish on 2023.
- But 30% also said it would be 2024.
- Another 29% of practitioners said it would be 2025 or later, or never.
Respondents said they would still place orders six months in advance to ensure that goods are in stock.
When these logisticians were asked if they thought the Biden administration understood the challenges facing the supply chain, 59 percent of respondents said the government did not.
But the NRF's vice president for supply chain and customs policy said the government has taken steps to address supply chain challenges by sharing logistics data.
For example, earlier this year, the U.S. government launched a supply chain data-sharing pilot project called Freight Logistics Optimization Works (Freight Logistics Optimization Works). The Department of Transportation told CNBC that 46 participants are currently involved in the program.
But NRF also said, "The government needs to continue to bring together supply chain stakeholders to discuss ways to expand data sharing to create a truly digital supply chain."
While logistics managers and government officials have said that data sharing will speed up shipments and help reduce costs, the savings can be passed on to consumers.
But only 22 percent said they believed in the plan, while a total of 51 percent of logistics managers surveyed in this survey report said they did not believe a national supply chain database would be successful, and a further 27 percent said they were unsure.
The CONECT chairman said, "Hard data is the backbone of effective supply chain management, and intelligence on real-time freight flows is critical. the CNBC survey highlights the importance of data sharing solutions for the industry."
AAFA's senior vice president for policy told CNBC that the problems causing the supply chain crisis are far from over. He said, "It's time to redouble our efforts to bring all stakeholders together and create real solutions so we don't end up jumping from one crisis to another."
In this CNBC survey, management of logistics companies also spoke of inflationary, labor pressures that will lead to higher costs.
Respondents said that energy prices and labor are two inflationary pressures that are still pushing up logistics costs. On the labor front, they are concerned about the mental health of the workforce and the shortage of skilled workers, which adds to labor pressures. The survey results ranked these issues as: employee burnout (65%), lack of employees with the right skills (61%) and the need to rehire to address skill gaps (75%).
CONECT's stated, " Logistics is still a people-driven business, and without the right talent and expertise, none of these supply chain challenges will be addressed."