The COVID-19 pandemic may be officially over, but the global supply chain disruptions it caused are far from resolved. Yikun Shao, Head of Supply Chain for Alibaba’s North America B2B business, understands the challenges that businesses face in this volatile environment. In an interview with Retail TouchPoints, Shao shares valuable insights and strategies for companies, especially small businesses, to adapt and thrive in 2024.
During the pandemic, many businesses took reactive steps to survive, such as rapidly adopting technology and expanding into ecommerce. As a result, they realized the benefits of these actions and are now expediting their adoption of new tools and technologies. This includes the continued integration of AI and chatbots into their operations.
Supply chain visibility has become increasingly crucial. Real-time tracking of shipments, inventory levels, and production processes allows businesses to maintain efficiency and make informed decisions. Shao emphasizes that post-pandemic, there is a shift towards proactive planning for supply chain resilience. Unexpected disruptions, whether caused by extreme weather or geopolitical issues, continue to test a company’s capabilities.
Regarding the Panama Canal, ongoing disruptions due to drought necessitate greater visibility into the supply chain. Shao highlights the rising adoption of digital tools like blockchain, AI, and predictive analytics to enhance transparency and efficiency. Alternative routes and transportation methods, such as air cargo or localizing the supply chain, are also viable options for businesses.
Looking ahead to 2024, supply chain pressures are expected to shift from the supply side to the demand side. Small businesses face the challenge of managing excess inventory while also being prepared to meet fluctuations in customer demand. Additionally, global economic conditions, including inflation and fluctuating shipping costs, pose significant challenges for businesses’ inventory management and pricing strategies.
In conclusion, businesses must remain agile and embrace technological advancements to navigate the ever-evolving supply chain landscape. By leveraging digital tools, optimizing visibility, and adapting their strategies, companies can position themselves for success in 2024 and beyond.