5 Things You May Have Missed in Supply Chain News
Welcome to our monthly series where we give you the scoop on five things you may have missed in supply chain news. You can also catch the full rundown from our Blue Yonder Live video:
1. There are disruptions at the Chinese ports, again
With China’s recent rising Coronavirus cases and the country’s zero-COVID-19 policy restrictions, we’re starting to see shutdowns affecting the ports again. The already-lean supply chains will likely see ripple effects of these disruptions for months, just as we saw in July 2021.
2. Surging shipping container costs are driving inflation
Just a few years ago, the rate for a 40-foot container to the U.S. from Asia averaged less than $2,000. We saw that number climb to $20,000 in 2021, and ocean shipping rates are expected to stay elevated throughout 2022. All these costs are being passed to consumers, and analysts say if nothing is done to reverse the trend, the risk in terms of inflation and food security could grow very high.
3. Big tech companies still can’t find chips
Tech giants like Apple and Tesla have both said they expect supply to be down in 2022 because of the ongoing semiconductor shortage. Although new American chip manufacturers have been announced, we won’t see a reprieve in the supply chain shortage this year. It is worth noting that Apple is still expected to have an incredible earnings quarter despite the chip shortage, primarily due to their rise in services over hardware.
4. There’s a supply chain shortage of fresh flowers
Between the recent freezes, the shortage of vases, and the transportation worker shortage — fresh flowers are the next to be called on the supply chain shortage bingo card. Experts predict you should be able to still buy flowers, but they will come at a much higher cost. Maybe it’s time to brainstorm some back-up gift ideas for your sweetheart?
5. Blue Yonder’s Luminate™ Supply Chain Solutions Deliver a Potential 394% ROI
How much of an impact can intelligent supply chain solutions make? Blue Yonder commissioned Forrester Consulting to study the real-world, financial benefits generated by Blue Yonder’s Luminate™ solutions, and the study reveals that a $10 billion company can expect to realize a 394% return on its investment in Blue Yonder solutions over a three-year period. Read the full study here.