Published: June 15, 2023
Supply chains have come under unprecedented pressure in the last two years, with the coronavirus pandemic and Russia’s war on Ukraine leading to a worldwide shortage of everything from microchips to wheat. Logistics companies are at the forefront of getting supply chains working again, and for many, the collapse of reliable supply routes has led to both opportunities and challenges.
Supply chains are under record pressure, according to some metrics. In the US, the Logistics Managers Index, a monthly survey of logistics managers on their operations, hit an all-time record high of 76.2 in March 2022, which indicated that logistics managers were experiencing supply chain problems at intensities never felt before.
“Continued inventory congestion has driven inventory costs, warehousing prices, and overall aggregate logistics costs to all-time high levels,” said the report accompanying the index, which is issued by Colorado State University. “This is putting even more pressure on already-constrained capacity.”
While supply chain problems affect almost every industry, from automotive to hospitality, logistics companies are on the front line of helping ease supply chain pressures.