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Published: Wednesday, November 17, 2021 - 13:00 (LMA Consulting Group: Claremont, CA) -- Manufacturing and supply chain expert, Lisa Anderson, president of LMA Consulting Group Inc., predicts that supply chain disruption will continue well beyond 2024. LMA Consulting Group works with manufacturers and distributors on strategy and end-to-end supply chain transformation to maximize the customer experience and enable profitable, scalable, dramatic business growth. “The supply chain disruption is real and will last for quite some time,” says Anderson. Every supply chain is a complex set of connections that spans from the supplier’s suppliers to product or service accessibility for the end user. “Let’s look at the ‘why’ of the disruption,” she continues. “If you remove industry nuances, there are three main causes of the disruption. The first cause is labor. The pandemic exacerbated the ongoing drain of skilled ‘boomer’ workers, many of whom took early retirement. The pandemic also caused workers to reassess their priorities. That resulted in people deciding that they didn’t like their industry or job or their boss. This has manifested into what many are calling the Great Resignation.” Labor shortages exist in almost every industry and position. “Manufacturing, transportation, distribution, none of these industries are exempt. And, most of these industries affect the consumer, who has felt the supply chain pinch the worst,” Anderson adds. The second reason for supply chain disruption is misalignment. “The pandemic caused a shift in demand. When people experienced an out-of-stock, they found new products that were either similar or better. This shift caused a supply chain misalignment: having the wrong products in the wrong places at the wrong time. So, even when the original products were in place, the demand was no longer there because it had shifted,” says Anderson. The most expensive reason for supply chain disruptions is equipment. “There is a shortage of equipment in all sectors,” Anderson continues. “This includes chassis used to off-load trailers from ships. Trucks are in short supply, and laws are requiring equipment upgrades. Medical device equipment, farming and construction equipment, food processing equipment, and equipment needed for technological upgrades are all in short supply. “It all comes down to creating a never-ending supply chain circle, almost like the supply chain is chasing its proverbial tail. I don’t see that this is easily solvable by initiating new laws or enticing workers with more money. Sure, it can help, but it’s not an easy fix. It will take recognizing that there may be no new normal. Essentially, the supply chain will be in a constant state of evolution. The successful manufacturers will be adaptive, resilient, and forward-thinking as they respond to changes in demand and recognize an ever-evolving supply chain,” Anderson concludes. Quality Digest does not charge readers for its content. We believe that industry news is important for you to do your job, and Quality Digest supports businesses of all types. However, someone has to pay for this content. And that’s where advertising comes in. Most people consider ads a nuisance, but they do serve a useful function besides allowing media companies to stay afloat. They keep you aware of new products and services relevant to your industry. All ads in Quality Digest apply directly to products and services that most of our readers need. You won’t see automobile or health supplement ads. So please consider turning off your ad blocker for our site. Thanks, For 40 years Quality Digest has been the go-to source for all things quality. Our newsletter, Quality Digest, shares expert commentary and relevant industry resources to assist our readers in their quest for continuous improvement. Our website includes every column and article from the newsletter since May 2009 as well as back issues of Quality Digest magazine to August 1995. We are committed to promoting a view wherein quality is not a niche, but an integral part of every phase of manufacturing and services.President of LMA Consulting Predicts Supply Chain Disruptions to Continue Beyond 2024
Successful manufacturers will need to be adaptive, resilient, and forward-thinking
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