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Climate Change: Yet Another Source of Global Supply Chain Risk and Disruption

BlueYonder

to the recent devastating floods in Pakistan , we’re witnessing a series of natural and humanitarian crises unfold as a result of global warming. Following on the heels of COVID-19, port closures, labor shortages and geopolitical conflict, climate change-related events are emerging as a significant source of supply chain disruption.

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As Inventories and Capacity Expansion Grew Too Quickly in 2022, Customers are Forcing Suppliers to Bear the Brunt of Optimistic Forecasts

NC State SCRC

However, I’ve been hearing more and more stories about how the rapid over-expansion of many brands and retailers in 2021 has proven to result in all kinds of problems, specifically around additional inventory, excess capacity, and over-expansion of the workforce.

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Podcast: Rob O’Byrne on Digital Transformation, Sustainability, and Diversification in Sourcing

Requis

Sourcing has probably been the biggest thing over the last decade or two, coupled with that reduction in local manufacturing of course. Sourcing is now predominantly overseas: China is one of the big sourcing countries of course, along with India, Pakistan and Bangladesh, Vietnam and Thailand.

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Supply Chain Management in Apparel Industry

SCMDOJO

For the production, the appropriate raw material is sourced or produced based on the details provided by the fashion designers in the previous step. Countries, especially in South Asia, like China, India, Bangladesh, Pakistan, Vietnam, etc., This reduces the cost of keeping the inventory that would not sell.

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Three Benefits of a Resilient Supply Chain

Oracle SCM

This disruption can be responsible for events as disparate seeming as deep freezes in the UK , record snowfalls in the US , drought in the Amazon, and floods in Pakistan. When La Niña threatens the ability to source material, manage operations and inventory, or transport it, it becomes a supply chain problem.

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Ten Supply Chain Predictions for 2023

NC State SCRC

Inventory will remain bloated for the first half of 2023, – and supplier relationships will be tested. For instance, a large apparel brand requested about 20 of their largest textile mills (many in Pakistan, Singapore, China, and other regions) to travel all the way to San Francisco for a “Vendor Summit”.

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Top 20 Verified Supply Chain Experts You Can Hire

SCMDOJO

Expertise: Sourcing, Supply Chain Analysis, Logistics & Transportation, Logistics Management Consulting, Freight (Maritime, Land, or Air), Logistics Technology Solutions. They come from a variety of backgrounds. Hire any of them as your supply chain consultant and see the difference! You can Hire Matias or start a conversation from here