A 72% majority of supply chain professionals are experiencing significant challenges across their organizations, from fuel costs to inflation to various delays outside their control, according to a report from last mile delivery software provider DispatchTrack.
And those issues are expected to continue over the next six months, DispatchTrack said in its “Supply Chain Perspective Report.” The research is based on a survey completed last month of over 100 logistics professionals in the industries of furniture and appliances, 3PLs, medical, auto parts, and others.
By the numbers, the top challenges supply chain leaders are currently experiencing include fuel costs (59%), inflation (46%), delays outside of their control (41%), unpredictability (38%), driver shortages (32%), and losing business due to the economy (30%).
The data also signaled that supply chain leaders expect ongoing increases in operating costs, as 6 in 10 respondents expect operating costs to be 10% to 20% higher this year than in past years.
But despite those challenges and uncertainties, the majority of supply chain leaders are optimistic about the future, with 61% reporting a positive business outlook for 2023. In the coming year, over half of supply chain organizations plan to accelerate technology adoption (57%) as well as hire more drivers and increase delivery capacity (55%).
“The current economy is definitely having an impact on businesses and creating a wide range of supply chain challenges. That’s why it’s never been more important for businesses to deliver an excellent customer experience and preserve customer loyalty. Compromising service just isn’t worth it,” Satish Natarajan, DispatchTrack’s co-founder and CEO, said in a release. “Investing in the right systems and technology is absolutely key to being more cost-efficient while staying customer-centric. Ultimately, that’s key to weathering supply chain challenges.”
Gartner, Inc.