5 Challenges of Supply Chain Flexibility

 The majority of businesses in the e-commerce sector rely on supply chains, which frequently undergo fundamental changes as a result of abrupt changes in demand patterns. To address this dilemma, these companies retain supply chain flexibility. 


The global market for supply chain management was valued at USD 16.64 billion in 2021, and from 2022 to 2028, it is likely to expand at a CAGR of 10.8%. In such a case, the importance of supply chain flexibility in today's global supply chain management and warehouse fulfilment increases. The capacity to react swiftly and effectively to changes in demand will decide the fate of e-commerce companies in cut-throat competition. 


Flexibility in the Supply Chain: A Basic Understanding


Flexibility in the supply chain refers to a company's capacity to react swiftly and effectively to changes in demand. An organisation can prevent inventory shortages, manufacturing bottlenecks, and other disruptions by having a flexible supply chain.


5 Major Challenges to Supply Chain Flexibility


1. Insufficient resources


Since the beginning of the pandemic, there has been concern about a lack of inputs because of a rapid, unprecedented rise in consumer demand. Even now, merchants and suppliers are struggling to match this demand due to the limited supply of raw materials. 


2. Increases in freight charges


Contrary to initial expectations, container shipping has risen sharply in significance over the course of the pandemic. Online sales have soared as a result of global lockdown measures, increasing demand for imported raw materials and finished consumer goods (a large percentage of which are moved in shipping containers).    



3. Challenging market analysis


Demand forecasting in the midst of a pandemic around the world has made supply chain management even more complicated for many companies. COVID-19 completely destroyed the expectations of many merchants and producers of consumer goods/services, leaving them clueless on matters of inventory management and warehouse fulfilment. 


Also Read: 5 Post-Purchase Strategies To Improve CX



4. Port blockage


Port congestion brought on by the pandemic is still one of the largest problems for supply chain flexibility, and port owners, carriers, and shippers are still looking for a practical solution to this problem. 


5. A significant shift in customer behaviour


The pandemic has also had a huge impact on consumer attitudes and behaviours, which has resulted in lower delivery standards and higher expectations for positive customer experiences. 


Final Remarks



In the wake of radically shifting global market trends, your company must partner with the appropriate logistics supplier who can adapt to the continuously shifting demand patterns in the logistics and shipping sector. One such refuge for e-commerce companies is NimbusPost, a shipping aggregator committed to providing cost-effective domestic and international shipping, smart warehousing, and fulfilment services. 


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