What To Expect in 2022

In 2022, the only constant is change. While logistics and shipping has always been an evolving field, the pandemic brought an entirely new set of challenges.

And you can be sure, when challenges arise, change is around the corner. But no matter what curveballs the industry throws, it’s up to your 3 PL provider to problem solve and figure out how to get goods on the road and into the hands of customers. Knowing what to expect will make that easier on both ends, so here’s MKM’s top observations of what to expect in 2022:

1. Customers are over-inventoried

   1. Stocking issues have been a recurring theme for the last two years. What started with a toilet paper frenzy by consumers has turned into a supply chain bottleneck from lack of resources and workers. When either of these issues arise, business owners tend to over-purchase because, of course, everyone wants to have the products needed for customers. That’s usually a win-win, unless it leads to over-inventoried warehouses.

   2. For providers, there’s a fine line between being adequately prepared and having an unnecessary stock pile of goods sitting in storage. The main issue with this is there’s not enough space to store all these goods. If they aren’t flying off the shelf, they accumulate and take up space. Or, as one customer experienced after accumulating a mass amount of their product—people were not buying it. Simple as that.

   3. So as you move forward in 2022, keep realistic stock of what you have and what you will need. Don’t allow the panic of others to misguide your decisions. When we look at the entire picture of what the customer really wants and needs, making these types of tough calls can become easier.

2. Expectations have shifted

   1. For years, most of us became used to the ease of online shopping, of items arriving sometimes even the same day. Now, long gone are the days of overnight deliveries as the standard. Now, prices are the same (or higher), and shipping takes longer. We’ve gone back to the way it used to be, remember those? When items took 5-7 business days or, sometimes, even months.

   2. Shifting our expectations during a time like this—when inventory is in flux and carriers have lowered their standard—is paramount. Whether it’s due to inventory and staffing shortages or a shift in expectations among companies and consumers, the important thing here is to step back and recognize that the standards have changed. If you make business decisions keeping all the various curveballs in mind, you’ll have a much easier time when a new one comes your way.

3. Being nimble and strategic is more important now than ever before

   1. 3PL providers have always had to juggle. There are hundreds of details and hundreds (not sure about this number haha) of clients. Not to mention the constant adjustments and changes that occur every hour.

   2. Problem-solving is our specialty.

   3. But in 2022, this skill is more important than ever before.

As we continue through 2022, knowing what to expect in the world of logistics is crucial, not only to help your business, but to communicate effectively with customers. When everyone is prepared with realistic expectations, every step is easier. But none of us can do it alone. So put your trust in a 3PL like MKM, a company with decades of experience that has dealt with all the changes in the industry. Let us help you navigate and face obstacles head on.

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