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State of Supply Chain - LMA Consulting Group, Inc. LMA Consulting Group A top consultant worldwide and ranked #16 SAP’s Supply Chain Influencers START
Introduction We’ve attended several conferences, worked with clients, and collaborated with colleagues and trusted advisors related to e-commerce, logistics, manufacturing, and the supply chain, and our takeaways aren’t telling a good story.
Bullwhip Effect/ Roller Coaster Ride • The supply chain remains out of alignment, spurring further disruptions as companies try to figure out how to get the right products to the right place at the right time while not losing their shirts in terms of profitability and cash flow.
E-commerce is Insane • E-commerce is expected to grow to 26% of retail sales by 2025 and is already overwhelming transportation/ last mile, warehousing (no space is available), labor and/or automation needs (as it is far harder to ship pieces than boxes), etc
Gas Prices • Not only is inflation running rampant, but increasing gas prices are driving truck drivers out of business. In the last two days, I’ve heard from multiple sources that truck drivers are hanging up their hats especially those supporting the agriculture industry as they cannot stay in business with the price increases.
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