Supply Chain and Logistics Challenges for 2022

Warehouse Manager giving direction

The transportation and warehousing industry makes up more than $1 trillion as an industry. No matter what segment of the business you’re in, you need to understand what challenges you’ll face this year and beyond.

World events, economic constraints, changes in technology, and other matters are driving these evolutions. You can navigate accordingly when you’re aware of the challenges and how you can adapt. So which points of information should you know? We’re happy to explain.

Keep reading to learn some of the most critical logistics challenges for 2022 and the foreseeable future.

The Ukraine Crisis

Russia invaded Ukraine on February 24, and not only did that lead to thousands of deaths and more than 4 million people displaced – but it also created a shift that will have economic implications for years to come. The world had already been experiencing supply chain issues, and Russia’s invasion exacerbated these issues.

We’re dealing with rising freight costs and changes based on imports and exports. Commerce is largely globally-connected, which creates ripple effects anytime a resource is limited or disrupted. For instance, Russia exports more than $6 billion in wheat every year.

Sanctions and shortages have created all sorts of supply chain issues. We’ve started to get some relief from the pandemic due to COVID-19 numbers going down, but now the crisis in Ukraine brings more challenges.

Inflation Is on the Rise

Inflation is the next challenge on the horizon that you’ll need to understand with your supply chain and logistics needs. Consumer prices rose roughly 9% recently compared to last year.

Consumers are tightening their pockets, and it costs more to do business. Demand is on the rise, inventory is low, and transportation challenges are all issues that you’ll need to navigate. Put your heads together with financial experts, certified public accountants (CPA), and logistics experts. They can help you stay profitable and manage your expenses in the meantime.

This pressure on supply chains is something that you’ll need to manage for the foreseeable future.

Warehouse and Transportation Needs and Constraints

Get to know the different warehouse challenges that are at play in 2022 and beyond. We’re dealing with growing labor shortages, which lead to a warehouse labor shortage across the board.

Transportation costs are leading to increased freight charges. This will affect your billing and shipping. You’ll need to manage your fleet maintenance costs and watch how your vehicles and equipment are depreciating. As automation becomes more commonplace, you’ll be able to handle your warehousing and distribution needs in a way that works in your favor.

Expect to see a rise in eco-friendly vehicle and logistics methods. This will help you cut consumption and take advantage of green-friendly tax credits.

Address These Logistics Challenges for 2022

The points above explain some of the biggest logistics challenges for 2022. When you’re looking into the help of some logistics providers, these are points that you will have to keep your eye on.

One of the best things you can do is reach out to professionals that can put together a game plan that’ll serve you. Handling your business with strategy will allow your company to thrive in the face of these challenges.

Let Amertrans help you with all of your logistics needs. Take the time to contact us or give us a call at (847)725-7750.

Related Articles