TARGET OPERATING MODEL (TOM) RELEASEDMay 24, 2023
benchmark analytics to maximize freight spendMay 24, 2023
- After two years of disruption, supply chains are finally starting to stabilize.
- Freight rates have fallen from record highs, and the ship queue off the Port of Los Angeles has disappeared.
- However, there are still threats to supply chains, such as a faltering economy and labor strikes.
- Businesses are right-sizing their operations and making their supply chains more productive in response to these threats.
- In the future, shippers will need to be prepared for further turmoil, such as the war in Ukraine and China's reopening.
- Labor strikes are also a potential threat to freight movement in the U.S.
- To learn more about the major trends that will shape supply chains in 2023, read the stories below.
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- The war in Ukraine has disrupted the supply of critical commodities, such as wheat and fertilizer.
- China's reopening could lead to a surge in demand for goods, which could put additional strain on supply chains.
- Dockworkers at West Coast ports are negotiating a new contract, and a strike is a possibility.
- UPS workers have also threatened to strike if a new contract isn't reached this summer.
Overall, the outlook for supply chains in 2023 is uncertain. Businesses will need to be prepared for further disruptions and make their supply chains as resilient as possible.