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Enduring Supply Chain Disruptions Call for Renewed Action

The widespread impacts of the COVID-19 pandemic on supply chains over the last year have grown more visible and reinforced the need to create more flexible and resilient operations to navigate any future disruptions. Continued issues in global shipping and supply chain shortages have prompted renewed calls for action from many.

As The Wall Street Journal reports, President Biden recently signed an executive order directing a broad review of supply chains for critical materials with the aim of spurring domestic production while strengthening ties with allies. The executive order mandates a 100-day review of supply chains for four areas:

  • Semiconductors, used in products from cars to phones
  • Large-capacity batteries used in electric vehicles
  • Pharmaceuticals
  • Rare-earth elements that are key to technology and defense

President Biden also called for a separate, one-year review of supply chains covering six broader sectors, from technology to food production.

According to a fact sheet released on the order, “Securing America’s Critical Supply Chains,” agencies and departments – which could include the U.S. Department of Transportation – will also be required to identify locations of key manufacturing and production assets and the role of transportation systems in supporting supply chains.

The hope with issuing the executive order is to produce a longer-term plan to help the federal government prevent future supply chain problems.

In a similar effort to address increasing demands in parcel shipping, the United States Postal Service (USPS) recently unveiled a contract for its next generation delivery vehicle (NGDV), set to hit the road in 2023. According to CNN, the vehicles will have more cargo space than current vehicles, allowing USPS to deliver more packages, a growing and profitable part of its business, rather than traditional letters, a segment that’s shrinking.

Many, but not all, of the NGDVs will be electric vehicles; the rest will be what the USPS calls high-efficiency traditional gasoline engines. With electric vehicles changing rapidly and the vehicles designed to last decades, the USPS contract calls for the electric versions to be retrofitted to keep pace with advances.

These recent actions by the White House and USPS are among many signs that governments and organizations worldwide continue to make substantial modifications to their supply chains to avoid disruptions in the wake of an unprecedented year that altered the global supply chain industry.

When supply chain disruptions caused by events like the COVID-19 pandemic occur, a cloud Transportation Management System (TMS) for parcel shipping is a lifeline to supply chain professionals seeking to rapidly increase their available shipping options to manage any issues that arise and improve coordination across the supply chain. The use of an advanced TMS for parcel shipping will increase agility and transcend supply chain boundaries during a supply chain disruption by providing shippers with the ability to quickly onboard, leverage, and optimize multiple carrier services while producing the data and analytics necessary to understand where logistics performance is sub-par and uncover opportunities to increase performance and savings.

Contact us today to learn more about how Logistyx’s cloud TMS for parcel shipping can help you navigate increasing shipping complexities and create a more resilient supply chain.