In 2020 and 2021, supply chains reached their breaking point due to the pandemic. However, in 2022, there is some semblance of recovery as most services come to their pre-pandemic levels. Despite the challenging times in the past two years, there are many lessons that businesses can take from the occurrences. Businesses need to rethink their approaches to material sourcing and logistics. Businesses can capitalize on the problems they faced last year to ensure that their supply chains recover fully and are resilient enough to face the potential problems they encountered in the past year. This comes down to investing in artificial intelligence (AI), Machine Learning (ML) and automation, all of which are critical in the digitization of the supply chain and diversification of manufacturing.

COVID-19 has created a significant imbalance between the supply and demand of goods, affecting global supply chains. At the height of the pandemic and lockdowns, every part of the value chain was put under stress, from raw material sourcing to the end customer. Furthermore, areas like commercial, operational, financial and even organizational resilience were put under an unexpected test. The stress on the value chain during the COVID-19 period highlighted risks and gaps in the resilience of every company, including the bigger ones. As CEOs look to make things better to avoid large-scale disruptions in the future, some believe that innovation is the only route to resilience, while others believe that increasing investment in disruption detection will bear good fruits.

The COVID-19 pandemic was indeed the hardest disaster that man has ever faced. It was the worst nightmare for many industries, resulting in massive losses. One of the most hit areas by the pandemic is the supply chain. With the closure of many airports and ports to curb the spread of COVID, there were rippling disruptions that continue to hurt the markets to date. Although 2020 and 2021 were the toughest years for supply chain providers, we continue to experience challenges even in 2022. Below are challenges that supply chains are struggling with in the year ahead.