Getting used to the unpredictable .
By Bart de Muynck
I
’ m writing this article around Halloween and while trick or treating is fun for kids in the neighborhood , for those involved in supply chain operations the words ‘ trick or treat ’ could take on a more ominous tone . Certainly , if you take a step back and think about all the challenges supply chains have faced in the last few years , it would be enough to frighten off the more faint-hearted from considering a career in the industry . Indeed , if you work with supply chain colleagues and they appear to have a somewhat haunted look , that is not just the Halloween spirit , there are real issues now and ahead in 2023 which must be addressed .
As my colleague Josh Brazil said recently : “ We are living through a unique convergence of economic , environmental and social challenges , and the supply chain , which was fundamental in keeping the world moving during the pandemic , is being tested like never before …”
So , if you are in the supply chain profession , or a company waiting at the end of a supply chain for goods that might be critical for your business , how do you get your head around these obstacles ? And more importantly , how do
22 you minimize disruption and maximize the potential opportunities that effective management of your supply chain can offer ?
Fundamentally , we must get used to operating in a state of permanent uncertainty , which is nothing unusual for the supply chain industry , but perhaps the level of unpredictability around economic , geopolitical and natural disruptions is what makes this even harder .
Surviving the scary season for supply chains
There are any number of real headaches facing both those operating in the supply chain industry and their end customers . Inventory build-up is a very real issue , because companies stockpiled goods in response to supply chain difficulties during the pandemic or due to late arrival of products that were ordered previously . This is now leading to surplus stock . In our October Ocean report , Nike was referenced as having $ 9.7 billion of goods on its balance sheet in the first quarter , up 44 percent on the same period last year . Amazon and Walmart faced similar inventory woes . Total retail inventories in the US set a new record in July at $ 731.6bn . With the