2020 was the year the world stood still, and two years later, many sectors are still trying to strengthen their foothold. One of such segments is the eCommerce sector, especially how players have come to terms with eCommerce logistics. The pandemic brought to the forefront a problem that many eCommerce brands believed they had effectively meandered: the supply chain crisis.

Global Supply Chain Disruptions of 2022

Inaccessible cargo, increased shipping cost, overstocked warehouses, lack of cargo deliveries, and the safety of transportation workers are a few factors plaguing global eCommerce logistics. While many stakeholders derive pleasure in blaming the COVID-19 pandemic, others argue that the pandemic was the pressure pot that sent the issues bubbling over.

Global supply chain disruptions have impacted the capacity of eCommerce logistics to perform optimally, and end-consumers are at the receiving end of things. But even with the current state of things, a resolution is only a few solutions away. Issues or not, the progress of many businesses and customers’ satisfaction is heavily reliant on the swiftness of eCommerce logistics providers.

As these stakeholders have a crucial role in this crisis, the pertinent question emerges; "how can your business navigate supply chain disruptions in eCommerce logistics?

The Root Cause of Supply Chain Disruptions

Arguably, the first step towards navigating this crisis is by identifying its root causes and source of challenges all stakeholders are facing, and we can narrow them to the following;

1. COVID-19 Pandemic: The Covid-19 pandemic was the trigger for all that we are witnessing, and 2020 showed just how much a pandemic could upend organizations. A novel virus broke out that affects everyone, irrespective of your age group. Numerous eCommerce logistics companies disrupted their regular schedules and ran with a ghost crew to minimize risks. The pandemic unsettled supply chains across different regions and time zones, starting from manufacturers down to the final consumers and all parties in between.

2. Border Policing and Restrictions: The effect of border restrictions and policing is trickle-down results from the pandemic. Due to the unpredictable nature of the coronavirus, countries became more apprehensive (with some even closing their physical borders) to unsanctioned movements, even when it comes to cargo. All these restrictions have led to disruptions in the supply chain.

3. Disruptions in Raw Material Supply: Raw materials like; plastics, semiconductors, petrochemicals, etc., which were crucial to eCommerce, have become slow and expensive to produce over the last few months, and this is due to a host of factors. When a manufacturer fails to receive its desired quota of raw materials, the overall supply chain becomes affected.

4. Increasing Demand for Products:  Asides from keeping people at home, the pandemic also disrupted consumer culture. The uncertainty that came with the lockdowns saw consumers being mindful of their spending down to only the essentials. But as the lockdown restrictions were relaxed, so did consumers' appetite grow. The increased demand we keep witnessing is a response to this and partly due to more disposable income (savings and government stimulus packages) in the hands of consumers. Today, demands of consumer items are quickly outpacing what the supply can dish out, altering supply chain patterns, and eCommerce logistics is feeling the impact.

5. Transportation Limitations: Trucker shortages, high energy costs, and many other factors severely impact the state of transport. And in eCommerce logistics, successful product delivery lies with the number of transport facilities available. Supply chain disruptions occur when logistics companies have multiple deliveries in different locations but not enough transportation means or a limited amount of operators to carry out deliveries.

How to Effectively Navigate Supply Chain Disruptions?

Whenever a supply chain disruption is mentioned, it usually boils down to one of the above causes. But instead of dwelling on the problems, how can eCommerce stakeholders navigate these uncertain times? Well, we have outlined a few solutions.

1. Effective and Resilient Communication: Communication is needed when navigating supply chain interruptions. And for communications to be effective, it needs to carry everyone along, from the manufacturer to logistics partners and even the end-consumers.

Customers appreciate transparency over radio silence. If supplies are late, or there is a hitch in delivery, explaining the situation to your consumers impacts their user experience positively.

2. Utilizing Digital Technology (Order Management Systems): Order management systems help eCommerce logistics companies effectively process and track orders. Updating your technology to include an order management system ensures that you know the location of your cargo at all times. Utilizing digital technology can also predict potential supply chain threats.

3. Leveraging All Data Sources: Having too much information is never wrong, especially when handling supply chain issues. Collecting and acting on all data sources enables eCommerce logistics to predict and circumvent potential bottlenecks before they arrive, thereby guaranteeing the seamless movements of goods from the source to the final destination.

4. Partnering with a Reputable Logistics Service Provider: Nothing makes for a smooth supply chain than working with a trusted eCommerce logistics provider. eCommerce logistics companies should ease the stress of product delivery by ensuring that products move from manufacturers to final consumers as fast as possible. YunExpress is a top example of such logistics providers with an order management system and open communication channels with clients.

Conclusion

eCommerce logistics providers are essential to satisfactory deliveries and enhanced customer experiences. If all other aspects of a supply chain disruption are out of your hand, the one thing you can be in charge of is the choice of a logistics company that will handle your deliveries. Choose wisely by going for YunExpress.

YunExpress is home to over 50 global partners for seamless product deliveries worldwide.

YunExpress has been a top name in cross-border logistics for years and has delivered cargo to over 10,000 clients. Supply chain disruption or not, YunExpress delivers.