DispatchTrack, the global leader in last mile delivery solutions, introduced the Supply Chain Perspective report, which explores new and existing supply chain challenges organizations are facing today and how supply chain leaders are thinking about the year ahead. The research is based on a survey of over 100 logistics professionals completed last month.

Contrary to reports that the supply chain crisis is easing, the study uncovered the vast majority of supply chain professionals (72%) are still experiencing significant challenges across the organization with fuel costs topping the list of obstacles followed by inflation and various delays outside their control. And those issues are expected to continue over the next six months. Nearly half of respondents also expressed fear over losing business due to the economy.

Inventory supply remains a concern among supply chain organizations with 1 in 3 still grappling with inventory shortages while 1 in 4 are contending with oversupply.

The data also signaled that supply chain leaders expect ongoing increases in operating costs. 6 in 10 expect operating costs to be 10% to 20% higher this year than in past years. This likely explains why 4 in 10 businesses plan to increase fees to keep up with inflation and 1 in 10 are limiting warehouse space due to rising interest rates.

Despite current challenges and feelings of uncertainty around future business, the majority of supply chain leaders are optimistic about the future with 61% reporting a positive business outlook for 2023. In the coming year, over half of supply chain organizations plan to accelerate technology adoption (57%) as well as hire more drivers and increase delivery capacity (55%).

“The current economy is definitely having an impact on businesses and creating a wide range of supply chain challenges. That’s why it’s never been more important for businesses to deliver an excellent customer experience and preserve customer loyalty. Compromising service just isn’t worth it,” said Satish Natarajan, DispatchTrack co-founder and CEO. “Investing in the right systems and technology is absolutely key to being more cost-efficient while staying customer-centric. Ultimately, that’s key to weathering supply chain challenges.”

Key highlights include:

Challenges

• Supply chain leaders are still experiencing significant challenges. Despite reports that the supply chain crisis is easing, 72% of supply chain leaders are still experiencing challenges.

• Fuel prices and inflation top the list. The top challenges supply chain leaders are currently experiencing include fuel costs (59%), inflation (46%), delays outside of their control (41%), unpredictability (38%), driver shortages (32%), and losing business due to the economy (30%).

• Over the next six months, fuel costs and losing business are the biggest concerns. The top concerns supply chain leaders anticipate in the next six months include fuel costs (51%), losing business due to the economy (48%), inflation (44%), unpredictability (33%), driver shortages (32%), and delays outside of their control (31%)

• Supply chain organizations are still grappling with inventory shortages and oversupply. A third of organizations are struggling with inventory shortages this year while 1 in 4 are dealing with oversupply.

• 1 in 2 supply chain organizations remain uneasy about missing delivery windows. 53% of supply chain leaders are just as concerned or more concerned about missing delivery windows this year.

Costs and Inflation

• The vast majority anticipate further increases in operating costs. 62% expect operating costs to be 10% to 20% higher this year than in past years

• 4 in 10 plan to increase fees to keep up with inflation

• 1 in 10 are limiting warehouse space to counterbalance rising interest rates.

Outlook

• Despite challenges and feelings of uncertainty about future business, the majority of supply chain leaders are optimistic about the future. 2 in 3 expressed a positive business outlook for 2023.

• Over half of supply chain organizations plan to accelerate technology adoption as well as hire more drivers and increase delivery capacity. In the coming year, supply chain organizations plan to increase technology usage or adopt new solutions (57%), hire more drivers and increase delivery capacity (55%), add additional warehouse space (31%), and invest more in sustainability initiatives (23%).