Fleet managers may need to prepare for continued supply chain disruption, with new research suggesting businesses expect geopolitical uncertainty, material shortages and transport challenges to persist.
A global study commissioned by the British Standards Institution (BSI) surveyed 1,600 professionals involved in supply chain, logistics, procurement, ESG, finance, legal and operational risk management.
The findings suggest disruption is increasingly feeding through into higher costs. More than a third (36%) of businesses plan to raise prices over the next six months to offset supply chain pressures, while 28% expect to reduce their range of products or SKUs.
For fleet operators, the research highlights the importance of building greater resilience into vehicle, parts and equipment supply chains, particularly as organisations contend with changing trade routes, freight risks and shortages of critical components.
Despite recent disruption, only 34% of respondents said their organisation had been fully prepared for raw material or component shortages during the previous six months. Two-fifths had experienced disruption linked to geopolitical events over the past year, while 35% had encountered problems caused by shortages of materials or components.
Businesses are now taking steps to reduce their exposure. Almost four in five (80%) are already, or are about to begin, stockpiling or creating strategic inventory buffers. Meanwhile, 78% are currently considering or pursuing nearshoring within the next 12 months.
Transport strategies are also changing. Some 79% of organisations are already changing, or plan to change, the modes used to move products in response to disrupted shipping routes and freight theft.
Over the next six months, 33% expect to identify new suppliers and 24% plan to shift trade routes. A further 24% anticipate cutting jobs or reducing recruitment because of supply chain pressures.
Tony Pelli, Practice Director, Supply Chain Resilience at BSI, said the era of “smooth, predictable global trade” had ended, with organisations now operating against a backdrop of geopolitical competition, climate disruption and growing uncertainty.
For fleet decision-makers, the findings reinforce the case for looking beyond vehicle acquisition costs when planning future operations. Supplier diversification, parts availability, strategic stock levels and greater visibility across supply chains could all become increasingly important considerations as businesses seek to minimise vehicle downtime and control costs.
BSI says stronger collaboration, improved supply chain visibility and more proactive risk management will be essential as organisations adapt to what it describes as a “new normal of near-constant disruption”.
Image credit: https://unsplash.com/photos/a-warehouse-filled-with-lots-of-cars-and-trucks-5M-72czGFl4
