What is the State of Business Supply Chains in 2022

The pandemic of 2021 exposed the limits of our supply chain. As consumers and businesses adjust, supply chain knots will untangle. But the problem won’t be solved in 2022. Business supply chains will become more profitable in the coming years, and the pandemic will fade into history. Until then, businesses and consumers must work to adapt to these changes. But it won’t be too late to change how you do business.


As businesses prepare to enter the next decade, they must assess how the future will affect their supply chains. While the 2021 supply chain crisis illustrated some of the weaknesses in the system, the next two decades will see the issues resolved as consumers and companies adjust and the pandemic wears off.

Then, of course, the realities of maintaining profitability will prevent resolving these problems. According to Harvard Business Review, as the supply chain resilience improves, some companies will strengthen their just-in-time processes and move production closer to home markets. At the same time, others will remain offshore to serve local needs.


While disruption is likely to continue, it will also offer an opportunity for businesses to improve long-standing weaknesses. In 2020, supply chain analytics became top-of-mind for CEOs and consumers alike, and in 2021 chip shortages brought their full attention.

In 2022, supply chains were still in crisis mode, with goods stuck in ports and the Suez Canal. Here are some trends to look out for in business supply chains in 2022.

As consumer demands increase, so do consumer concerns. While companies have begun providing transparency about the sustainability of their supply chains, there’s a need for greater visibility into how they impact society.

As global trade evolves, companies will be more expected to explain how their supply chains affect the environment, society, and the economy. In 2022, transparency about supply chains may be mandated by law. But the benefits will far outweigh the risks.


While global economic growth and consumer spending power continue to drive the world’s economy, several factors pose new and persistent risks to business supply chains. These include geopolitical dynamics, cyber-attacks, and increased competition.

Deep integration and highly automated processes requiring massive data exchange will remain essential for future competitiveness. But these changes will also have a significant impact on business supply chains.

Water scarcity will be an increasingly pressing issue as the global population grows. As a result, water consumption regulations will be even stricter. For instance, extreme drought in Taiwan forced many companies to introduce water rationing practices.

The resulting regulations will further force companies to adopt measures to conserve water, which can significantly disrupt barge and cargo transportation. Furthermore, climate change and severe weather events may affect business supply chains, causing delays and increased costs.

Need for Continued Agility, Resilience, and Adaptability

As global competition intensifies, companies are looking for ways to improve their supply chains’ resilience and agility. They are looking for new ways to build capabilities into their supply chains, such as trading systems, planning and analytics, and additional logistics.

These capabilities can be provided as services, enabling more flexibility and cost control. When incorporated into a business’s supply chain, they can increase the organization’s resilience and mitigate future risks.

In the past two years, the global supply chain has been impacted by the COVID-19 pandemic. While the crisis has been primarily contained, it still highlights the need for change and a reset in supply chain design.

Global supply chains must be designed with resilience in mind, and governments must create them with this in mind. As a result, businesses and governments must build strength into their supply chains to better withstand adverse events.


The modern world has made it possible for consumers to access a variety of goods from around the world at affordable prices. Yet, even though this is a largely positive development, there are still issues in how business supply chains are managed. Global business supply chains’ sheer scope and complexity can prove overwhelming for organizations not equipped. However, there are many things companies can already do right now, no matter what size or industry they may be in. to help them manage their supply chain and make sure they maintain solid quality while remaining competitive in the marketplace.

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