So we have all made it halfway through this year, and even though what feels like the worst is behind us, we are still seeing new problems and issues stemming from our past and current global economic and health situation.
The supply chain has yet to get back on its eighteen wheels to keep rolling past barriers that lead us down the garden path of months-long delays, shortages in every way possible, and congestion that seems impossible to penetrate.
So what does that look like for the supply chain in Latin America? How has this region gotten on with these issues? Unfortunately, due to the state of the industry and the world, we see new situations in this region affecting the logistics industry's ability to transport and move goods promptly.
Wherever you turn, you are sure to hear the word shortage. It has been one of the root problems that has led to a slew of issues touching every aspect of the supply chain.
Lack of drivers, goods, and transport vehicles are a large part of the logistics issues in LATAM. There is currently a shortage of shipping containers worldwide. These containers can range in different sizes and are one of the primary means of transporting goods in and out of ports.
We are still looking at vessels stuck at sea, unable to dock and unload the vast amounts of goods they are holding. That leaves little resources left to move what is able to other places. In addition, empty shipping containers cannot be retrieved, which leaves many manufacturers and transporters stuck between a rock and a hard place.
Issues In Tracking and Tracing
We have explored many options for logistics, and supply chain companies can get better connected with technology to help drive better customer experiences, tracking and tracing things such as inventory and delivery.
However, we are still seeing a lack of utilization of technology here in LATAM. Companies and manufacturers are seeing the value of how machine learning, advanced systems, and AI can boost the overall efficiency in supply chain management across LATAM.
The greater issue is implementing these technologies quickly and across a wide range of operations. Moreover, it's important to note that the technologies implemented into your workflows should be the best match for the needs of your operations.
This is why it's essential to work with a technology partner that understands your needs as a logistics company. We have created many technology solutions for our partners' supply chain tracking and delivery across LATAM. You don't have to create something from scratch either! By looking at the technology and systems your company already has available, we can create an innovative solution that addresses your tracking and delivery needs.
Fuel Prices Soar
This industry can't move without fuel. It is one of the higher costs assisted in the industry and is hard to mitigate. Without it, all forms of transportation would be sitting ducks, and goods could not get to other destinations. This, in turn, affects economies and other industries at large.
With the prices continuing to climb and no sign of it slowing down or tapering off, companies have to find solutions to keep the fuel costs down. That could include sending less freight, making shorter delivery schedules, or cutting staff.
This, of course, puts a burden on all other industries that depend on supply chains to move goods. Not to mention the rise in costs in other areas of the supply chain to compensate for the increase in fuel prices. Overall puts a strain on the industry and makes transportation of imports and exports much more difficult.
Many industry leaders and experts are hoping that by the year's end, we will see some of these challenges addressed, and companies can begin improved operations. But, until then, the supply chain will need to try to meet demand in the best and most efficient way possible.