Supply Chain Changes in 2016

2016 was an eventful year for the supply chain. There have been events which have had an impact on the supply chain and changes that have occurred. Some things which have happened that have an impact on the supply chain:

1) Brexit

Brexit has impacted the supply chain and changes will come due to this. Some companies may benefit from the Brexit because foreign customers may be expecting cheaper exports from the UK. This could allow UK companies to lower prices and at the same maintaining a profit. For example, a company usually sells a product for £100.00, they know that international customers could be purchasing the same product for $150.00. UK companies could reduce the price of their products while still making a profit and especially if the products are bought in bulk. However, there is also the opposite where any negative impact from Brexit could mean higher costs of products as companies may pass on some of the increased costs.

2) Amazon same day delivery service

Amazon started offering same day delivery to Prime customers in Vancouver and Toronto. The service has been available in the U.S. but is slowly rolling out in Canada. This has increased customer service levels as this allows customers to receive their products the same day they are ordered. This creates an advantage for Amazon Prime users and has raised the stakes in the competitive e-commerce industry. Also, since this is launched before the holiday season, users will use this to their advantage when online shopping. Online retailers have begun to invest more in their e-commerce as customers look to more convenient ways to purchase products.

3) Truck driver shortage

There has been a lot of discussion surrounding the truck driver shortage. Every year more drivers will be required to fill empty spots but there will not be as many drivers to fill the need. A way to fill the shortage is a suggestion of considering autonomous trucks. With technology continually advancing, there has been an interest in researching the use of self-driving trucks and seeing how they can fit into the supply chain. While there is still a lot of research to be completed, this may be a solution to fill the shortage.

The supply chain changes every year and it is important that companies can keep up with these changes. ADLI Logistics can adapt to any changes that happen in the supply chain and are flexible to meet the needs of our customers. For more information about our freight shipping, warehousing and distribution services, fill out our contact form or call 1-877-363-7281!