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A combination of higher inflation rates and persistent shortages continues to challenge supply chains. Higher inflation increases the costs of production, shipping, raw materials, energy, and transportation, which severely impacts businesses. Furthermore, these costs can slow the rates of production, shipping, and transportation, ultimately stalling supply chains.
Studies show that global shipping costs are almost 5 times higher than pre-pandemic, accounting for as much as 40% inflation. Overall, higher shipping costs from inflation can cause a higher demand for assets, which causes more downtime and quickly drains operational efficiency. Inflation rates, shipping costs, and disruptions force businesses to find new, proactive solutions. New technologies offer enhanced features that can implement innovation to help manage inflation.
Moreover, innovative technology also helps create scalable operations to drive new sources of growth. It is essential to act now and gain a competitive advantage to beat the inflation-disruption cycle and minimize expenses. A demand for proactive problem-solving is why 73% of organizations plan to begin modernization by equipping workers with mobile devices. The right modernization strategy can create scalable operations in the supply chain to minimize disruptions and the impacts of inflation. To decide what to look for in a proper modernization strategy, consider the following:
Devices that empower shifts, connect teams, and withstand challenges manage the inflation and disruption cycle. Contact us today to learn more about how you can reduce the impacts of inflation in your supply chain.