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Factors extending supply chain stress

AMG Logistics

We won’t soon see an end to our “new normal” global consuming reality. Not just e-commerce, viral purchases and the ensuing effect or the availability of transport lifts are to blame for shortages. Your capacity to gather goods and find transportation to service consumers is further stressed over time by other circumstances.

Many millennials with purchasing power will put pressure on the world’s supply chains for consumer goods. There are 400 million millennials in China alone. The supply and transportation networks will be impacted for at least 20 years by millennials with money in emerging economies. Can the present transportation systems handle that much more strain?

Migration is being fuelled by viruses, remote employment, and baby boomer retirement tendencies. Additionally, when more people move, more homes are constructed and equipped. Boomers have plenty of money and want to spend it. New distribution patterns in the United States will self-configure based on shifts in the north-south, coast-to-inland, city-rural, high-crime/low-crime, and high-tax/low-tax directions.

If there are open borders, there is also movement from south to north. Numerous newcomers with families will move to metropolitan areas, driving consumption in several different ways.

Birth rates are rising. Sales of baby supplies, school supplies, clothing, toys, and gadgets will all experience boomlets after the lockdown baby boomlet. All that merchandise, plus more, is passing through your preferred port.

Consumption of industrial and consumer goods will continue to be fuelled by government investment in infrastructure and stimulus programs. It looks that the DC money engine will continue to function for some time, creating the surge of industrial spending required to propel the trillions designated for upgrading supporting infrastructure, including ports, highways, airports, rail links, and intermodal linkages.

The private sector continues to invest globally in operations, facilities, new demand-focused warehouses and DCs, technology (robotics, AI), and disruption readiness inventory safety stock.

Secure enduring partnerships with your logistics partners and carriers. Be prepared to spend the extra money and put up a battle to get a lift. Maintain your shift from a push to a pull paradigm while adjusting client purchase and planning signals. Utilizing improved visibility and top-tier partners, match demand and supply as best you can, and align your business process to accommodate that change.

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AMG Logistics is a Lagos-based TRACE certified logistics company. Our services include Freight Forwarding, Customs Clearance, Trucking, Distribution, and Warehousing within Nigeria.

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