2021 was the year of the supply chain. In this QAD Precision
Report, we look at what’s to come for global trade and
transportation and how to prepare for the unknown in 2022 and beyond.
With homes being transformed into makeshift offices, gyms, and
screen-reliant classrooms, and businesses adapting to growing demand
and changing regulations, it is no surprise that COVID-19 completely
changed how the world operates. In 2021, we witnessed a dramatic
shortage in shipping containers, chips required for electronics
production, truck drivers and general laborers, and more. All of which
caused severe bottlenecks in the supply chain.
The common denominator of these disruptions is the fractured supply
chain. Demand is exceeding supply while inflation skyrockets. No
industry has been immune to the impacts of the exhaustive disruptions,
and band-aid solutions simply aren’t enough.
All is not lost, however. As we look to the year ahead, there are
many ways companies can prepare to navigate unpredictable supply chain
logistics. First, let’s look at what we’re up against.
With inflation hitting the United States at a 30-year
high and rising, coupled with potential
impacts of a new variant, one thing is guaranteed: the global
economic outlook for 2022 is completely uncertain, according
to the UN Conference on Trade and Development (UNCTAD).
While the latter half of 2021 saw strong economic gains, UNCTAD
claims this uncertainty is caused by “demand due to subsiding
pandemic restrictions, economic stimulus packages, and increases in
The overall nervousness surrounding the pandemic and its aftershocks,
such as new variants, more lockdowns and halted production on factory
floors, have ultimately led to immense global supply chain issues. For
example, getting products out the door to customers is a difficult
task (i.e. logistical hassles like cargo ships idling outside of ports
and truckers waiting in exasperatingly long lines outside of loading
docks). These disruptions have not eased much this year and are
predicted to spill over well into 2022.
While these supply chain issues are likely to persist, there are ways
global companies can remain agile and flexible to stay ahead in the
Struggling through persistent supply chain woes is not only
stressful, it’s harmful to the bottom line. Despite bottlenecks,
e-commerce continues to undergo fantastic
booms. Managing these volumes and keeping up a high level of
customer service is no easy task.
With material, transportation and labor scarcities, going into a new
year with the same challenges is undoubtedly overwhelming.
From a product leaving the manufacturer to arriving at the customer’s
front door, an experienced global trade partner can help navigate a
supply chain in the midst of recovery. To prepare for the year ahead,
companies should prioritize two areas of their supply chain:
Transportation and Compliance.
A huge kink in the supply chain this year has been in transportation
and logistics - with a shortage of cargo ships, truck drivers and raw
materials, just to name a few issues. To curb these challenges and
help meet deadlines and quality control standards, QAD Precision’s
transportation solutions can help mitigate challenges, including:
execution - integrate into a worldwide carrier network for
inbound/outbound shipments, giving you the power of choice while
still maintaining uniform shipping procedures across your enterprise.
carrier shipping - compare carriers to secure the best
rates, transit times and arrival dates based on the unique details
of each shipment.
exception - oversee all shipments as they move through the
carrier network using a global delivery tracking software with
analytics - view real-time operational insight across all your
shipping operations for the current day or a date range. At a
glance you can see what is happening across all your shipments,
monitor key performance indices and proactively take action if and
when issues arise.
bill audit pay - gain more visibility and control over
shipping spend. A robust freight invoice auditing solution can
help identify consolidation opportunities, cut unnecessary freight
and trim costs by making smarter transportation decisions.
Overall, these flexible and customizable solutions increase
efficiency and deliver shipments on time at a low cost and with far
Navigating global compliance is overwhelming, but meeting
international regulations is essential in an efficient supply chain.
Compliance management solutions keep materials out of the wrong hands,
help avoid fees or penalties due to audits and customs issues, and
streamline international shipping processes. QAD Precision's global
compliance management software offers solutions for:
management - automate import/export processes, documentation
production and customs reporting, adhere to regulatory
requirements and reduce the hidden costs associated with global trade.
trade agreements - easily assess your entire product line
under FTA Rules of Origin, obtain a full detailed audit trail of
the results, and generate outbound and solicit Certificates of Origin.
zones - enable manufacturers and distributors to maximize the
benefits of FTZs.
party screening - program and automate compliance screening
to perform due diligence, stay up-to-date with denied parties
lists and create audit-ready electronic reports.
compliance analytics - survey on-demand dashboard views of
key operational statistics, along with metrics and trends. These
include the number and types of shipment holds as well as
Restricted Party Screening volume.
While the future is uncertain, we can guarantee one thing: having the
right technology in your global trade toolbox will ensure companies
have the agility and flexibility to meet whatever challenge comes
their way. The first step is to partner with an experienced global
trade management provider. Then, unlock the value, predictability and
ROI that is key to navigating the supply chain in 2022 and beyond.
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CHANGES IN THE HARMONIZED SYSTEM 2022
BENEFITS OF INTEGRATING COMPLIANCE AND MULTI CARRIER SHIPPING SOLUTIONS
PRECISION SOFTWARE UPGRADE ENHANCES SUPPLY CHAIN VISIBILITY AND CONNECTIVITY