Global Supply Chain

Phil Ellis, Chief Operating Officer at Southgate, discusses what’s causing disruptions in global supply chains.

 

Global supply chains have been crumbling under the strain of unprecedented demand. Since 2019, global container shipping rates have more than quadrupled and schedule delays have increased.

 

The conflict in Ukraine is only the latest hit to global supply chains. Disruptions from the pandemic, climate-related events and geopolitical tensions were already causing disturbances.

 

Whilst many countries are on the road to recovery, supply chains are still severely impacted. This is in part due to the pandemic but also a result of tensions around trade.

 

With the rising material and transportation costs, delays and shortages, it has become challenging for most companies to meet customer demands and remain profitable.

 

Facing more obstacles, supply chains have become less reliable as companies aim to respond to and match supply and demand.

 

As companies move forward and rethink sourcing, there will be many new factors to consider.

 

Supply chains will continue to face uncertainty throughout 2022 as we, our suppliers and their suppliers come to terms with rising costs.

 

Southgate value all its customers and are working closely with supply chains to keep up to speed with demand issues. Customers are at the forefront of the business and will always be kept up to date with any delays that may arise.

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