We may need many months or even years to deal with the chaos in the supply chain segment.
Havoc at ports is showing no signs of slowing, and a vast array of products is still dealing with a heavy rise in prices. Time alone is not expected to solve the great supply chain disruption that has hit the retail segment hard. We have to channel the required amount of investment, refashion the incentives, and revise technology across all businesses. To deal with the ongoing issue, we will need additional warehouses, more ships, and many truck drivers, which is very difficult to procure in a short time for cheap. We may need many months or even years to deal with the chaos in the supply chain segment.
Flexport’s chief economist Phil Levy has stated that the supply chain chaos won’t subsidize in 2022, and it is difficult to predict when things will go back to normal. For people who are keenly following the global supply chain, the very idea of going back to normal will seem impossible because we might just have to learn to live with the new normal. Reliable and cheap shipping is no longer an option for manufacturers; hence, they might have to set up a new production facility closer to the consumers. Manufacturers now have to go back to a more primitive approach to deal with the ongoing chaos.