Integrating sourcing management tools, such as CBX Software, can help alleviate issues and communication between vendors and retailers.
A report by CNBC revealed a severe spike in retailers and manufacturers placing premature orders and over-ordering goods has occurred due to the ongoing supply chain crisis. Supply chains have experienced massive disruptions this year on a global scale, including container shortages, severe floods, and COVID-19 outbreaks closing ports.
With consumer demand skyrocketing as economies reopen after the worst of the pandemic, industry experts project that the crisis will continue to worsen as long as the panic persists.
Heading into the holiday season, CBX Software’s industry-leading total sourcing management tool continues to provide relief for businesses encountering supply chain-related issues.
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A Forbes piece found that after COVID-19 caused an economic slowdown that slashed the global demand for goods in 2020, ocean carriers, manufacturers, and logistics workers all felt the lasting effects. When the federal government implemented a massive fiscal stimulus plan last summer, things slowly returned to normal for the supply chain industry, for a short period of time.
However, as demand continued to rise as the year progressed, the predictability and precision that powered the global manufacturing machine were seemingly nowhere to be found. With Cyber Monday and Black Friday just weeks away, the supply chain industry is preparing to brace for impact. The expected rise in consumer demand is likely to put pressure on the entire system that transports raw materials and finished products around the world.
While effective global sourcing strategies require carefully planned coordination with both internal teams and global sources, the most important element businesses need in 2021 is a sense of tenacity.
CBX Software’s global sourcing platform provides customers access to vital information related to their supply chain management, target audiences, product development and sourcing processes, and more. Users can optimize the decisions that impact private label product development, such as overall costs, product specifications, and any other product management processes. Such accessibility and optimization ability are crucial for business owners as they aim to build profitable companies.
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“Supply chain management will continue to be a critical part of operations for thousands of business owners in the U.S. and abroad for the foreseeable future,” said CBX Software CEO Michael Hung. “The winter season always brings about increased consumer demand as people begin to ramp up their gift shopping in preparation for the holidays. Our global sourcing platform puts users in the driver’s seat by providing them with the most important and relevant information as they manage their supply chain systems, as well as their product development and sourcing processes.”
The Harvard Business Review projects consumers will continue to seek low prices as the recession continues into the new year. Additionally, the article reviews how firms will not be able to charge more, even if they manufacture in higher-cost home markets. Companies will inevitably be forced to find ways to make their supply chains more resilient without weakening their competitiveness. To do so, Hung recommends that managers get a genuine understanding of their company’s vulnerabilities before making any adjustments.
“We are obviously trying to play our part, but other companies need to take some time to reflect upon their own weaknesses if we want to collectively alleviate the issues at hand,” said Hung. “Business owners and managers need to review their supply chain processes and identify where they are inefficient before looking to alter their infrastructures or workflows. Many of these vulnerabilities that we are seeing across the industry were present before the pandemic. If we want to bring an end to this crisis, managers need to take time to evaluate what is working and what is not before moving to optimize.”
