CFS Ltd – Cargo & Freight Services
Road transport | Air transport | Sea transport | Intermodal transport
THE GROWING EMPHASIS ON END-TO-END SUPPLY CHAIN VISIBILITY
“Against All Odds, Trade Going Strong”
🚺Future trade growth
Resilient seems to be the key word to describe global trade today. Despite myriad challenges—the aftermath of the pandemic, inflation, the war in Ukraine, a rocky stock market—global trade is persisting at strong levels, according to the latest DHL Trade Growth Atlas, published by DHL and the NYU Stern School of Business. The report maps the most important trends and prospects of global trade in goods, covering 173 countries.
Key takeaways include:
- International trade in goods has surged as high as 10% above pre-pandemic levels, even in the face of significant supply bottlenecks that constrained further growth.
- Prospects for future trade growth remain surprisingly positive. Due to the war in Ukraine, trade growth forecasts have been downgraded, but they still call for trade to grow slightly faster in 2022 and 2023 than it did over the preceding decade.
- E-commerce sales boomed during the pandemic and forecasts point to strong cross-border e-commerce growth continuing.
- Trade growth is spread across a wider variety of countries. China accounted for one-quarter of trade growth in recent years and is predicted to continue to have the largest growth, but its share is likely to fall by half, to 13%. Vietnam, India, and the Philippines stand out on both speed and scale of projected trade growth through 2026. All three have potential to benefit from efforts by many companies to diversify China-centric production and sourcing strategies.
🚺End-to-end supply chain visibility
Many businesses struggle with supply chain operations simply because it involves so much monitoring and visibility. For even the simplest of businesses, the supply chain can be extremely lengthy and complex, involving many suppliers and steps. In order to manage one’s business properly, it’s completely necessary to see what is happening in the planning, sourcing, building, delivering, and returning stages.
End-to-end (also known as E2E) in supply chain management refers to the end-to-end process in the supply chain. It involves the process in its entirety, starting at the procurement of materials from suppliers and ending when the product reaches the customer. The process needs to be tracked with data logging and condition monitoring, and that collected data must be analysed.
In most instances, end-to-end supply chains will follow this formula:
- Procurement and inventory management
- Logistics and planning
- Sales and customer service
💢Despite a growing movement towards investing in tech and qualified personnel, many businesses struggle to achieve end-to-end visibility across the supply chain in its entirety. There is clearly a need for it, but in a competitive global environment, it is difficult to respond as quickly as necessary to all supply chain events that could impact customer experience and profitability. To put it simply, collaboration among the necessary teams, warehouses, suppliers, and stakeholders is necessary to have better visibility of your supply chain.