{"id":9940,"date":"2021-12-16T09:17:01","date_gmt":"2021-12-16T17:17:01","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=9940"},"modified":"2025-04-16T11:49:27","modified_gmt":"2025-04-16T18:49:27","slug":"whats-the-best-response-to-global-supply-chain-disruption","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2021\/12\/whats-the-best-response-to-global-supply-chain-disruption","title":{"rendered":"What\u2019s the Best Response to Global Supply Chain Disruption?"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9941&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">The global supply chain is facing a perfect storm of challenges, and dealing with it, according to <\/span><a target=\"_blank\" href=\"https:\/\/www.industryweek.com\/supply-chain\/article\/21179504\/supply-chain-snarls-akin-to-playing-whacamole-says-ge-ceo\" rel=\"noopener\"><span style=\"font-weight: 400;\">GE CEO Larry Culp<\/span><\/a><span style=\"font-weight: 400;\">, \u201creally is akin to playing Whac-A-Mole.\u201d As one headache is eased, another pops up. And the current <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/09\/bend-but-dont-break-3-issues-facing-todays-supply-chain\" rel=\"noopener\"><span style=\"font-weight: 400;\">global supply chain disruptions<\/span><\/a><span style=\"font-weight: 400;\"> may be sticking around longer than we might think.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Manufacturers know all the issues:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">U.S. ports are overwhelmed by staggering numbers of incoming vessels and containers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A lack of railcars to move cargo from the ports is adding more delays.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shortages of truck drivers are affecting the last mile of deliveries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Warehouses are full and short-staffed, affecting how merchandise is received.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Because import freight is sitting on docks longer and warehouses receiving containers are backlogged, we\u2019re also seeing a shortage of containers and chassis to move containers.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><em>IndustryWeek<\/em> conducted a<\/span><a target=\"_blank\" href=\"https:\/\/www.industryweek.com\/leadership\/article\/21180266\/manufacturing-ceos-share-whats-keeping-them-up-at-night\" rel=\"noopener\"><span style=\"font-weight: 400;\"> survey of CEOs<\/span><\/a><span style=\"font-weight: 400;\"> in October 2021 to identify supply chain pain points. It\u2019s no surprise that after talent recruitment and retention, the second most-often mentioned priority relates to global supply chain disruption. It could be another 12 months before any improvements occur.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Federal Government Actions<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In October, the U.S. federal government, in concert with major industry representatives, took steps to help alleviate the port problems.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Port of Los Angeles is joining the Port of Long Beach in doubling operational hours to 24\/7. The Ports of Seattle and Tacoma are likewise expanding gate hours.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The International Longshore and Warehouse Union, representing the stevedores, agreed to the extra shift changes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Six major corporations (Walmart, Home Depot, Samsung, Target, FedEx and UPS) will use the expanded off-peak hours to move cargo off the dock, freeing up dock space, by moving 3,500 containers per week during the night shifts at the two Southern California ports.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As a part of the <\/span><a target=\"_blank\" href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2021\/11\/06\/fact-sheet-the-bipartisan-infrastructure-deal\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">Bipartisan Infrastructure Deal<\/span><\/a><span style=\"font-weight: 400;\"> (Infrastructure Investment and Jobs Act) the government will allocate $17 billion to improve infrastructure at coastal ports, inland ports and waterways, and land ports of entry along the border. Among many other specific investments announced November 9, 2021, the Act will:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allow port authorities to redirect project cost savings toward tackling supply chain challenges<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fund the Georgia Port Authority pop-up container yards project by reallocating more than $8 million\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Launch the Port Infrastructure Development Grant program to modernize ports and marine highways with more than $240 million within the next 45 days\u00a0\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify projects for U.S. Army Corps of Engineers construction at coastal ports and inland waterways within the next 60 days with $4 billion to repair infrastructure and deepen harbors<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Even with these steps, it\u2019s going to take significant time for the economy to rebound. QAD CMO Carter Lloyds recently wrote about <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/11\/3-industry-disruptors-affecting-manufacturers-today\" rel=\"noopener\"><span style=\"font-weight: 400;\">three major industry disruptors<\/span><\/a><span style=\"font-weight: 400;\">, starting with shipping. He also described how central bankers believe the supply chain bottlenecks will continue, pushing inflation.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Recommendations for Manufacturers<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Lauren Pittelli, founder and principal of Baker Logistics Consulting Services, recently wrote an article in <em>IndustryWeek<\/em> titled, <\/span><a target=\"_blank\" href=\"https:\/\/www.industryweek.com\/supply-chain\/logistics\/article\/21178876\/as-the-port-of-los-angeles-expands-hours-nimble-suppliers-seek-workarounds\" rel=\"noopener\"><span style=\"font-weight: 400;\">As the Port of Los Angeles Expands Hours, Nimble Suppliers Seek Workarounds<\/span><\/a><span style=\"font-weight: 400;\">. In addition to aligning imports with the new hour structure, she also suggests that manufacturers:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Optimize inbound planning and decision-making with good data<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Communicate closely with transportation providers, supplying inbound and outbound forecasts and issuing delivery orders in advance of vessel arrival<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Coordinate actions with partners, suppliers and customers<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Her recommendations align well with <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD solutions<\/span><\/a><span style=\"font-weight: 400;\"> that enable <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/digital-manufacturing\" rel=\"noopener\"><span style=\"font-weight: 400;\">digital manufacturing<\/span><\/a><span style=\"font-weight: 400;\"> and integrated supplier management, including those in the areas of:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2020\/09\/integrated-supplier-management-boosts-performance\" rel=\"noopener\"><span style=\"font-weight: 400;\">Supplier Relationship Management\u00a0\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production Execution<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Global Trade and Transportation Execution<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Supplier Relationship Management<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We see it often \u2013 manufacturers managing sourcing and supplier management with spreadsheets, emails, phone calls and buyers\u2019 memories to track hundreds of supplier details \u2013 and the inefficiencies pile up. Supplier quality, performance and development issues are rampant with manual systems.<\/span><\/p>\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/10\/qad-srm-an-introduction\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD SRM (Supplier Relationship Management)<\/span><\/a><span style=\"font-weight: 400;\"> removes those inefficiencies and error-prone processes by giving manufacturers and their suppliers a single point of entry that promotes real-time communication, streamlines procurement processes and reduces inbound supply risks. The<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/data-sheets\/qad-srm\" rel=\"noopener\"><span style=\"font-weight: 400;\"> solution<\/span><\/a><span style=\"font-weight: 400;\"> offers features that deliver value and improve supply chain management:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a target=\"_blank\" href=\"https:\/\/www.qad.com\/data-sheets\/qad-auctions\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD Auctions<\/span><\/a><span style=\"font-weight: 400;\"> tailors the auction design to the negotiation situation and awarding strategy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a target=\"_blank\" href=\"https:\/\/www.qad.com\/data-sheets\/qad-demand-and-delivery\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD Demand and Delivery<\/span><\/a><span style=\"font-weight: 400;\"> ensures visibility and collaboration on inventory, schedules, orders, shipments, invoices and replenishment requirements.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a target=\"_blank\" href=\"https:\/\/www.qad.com\/data-sheets\/qad-sourcing\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD Sourcing<\/span><\/a><span style=\"font-weight: 400;\"> manages the electronic RFQ process with suppliers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a target=\"_blank\" href=\"https:\/\/www.qad.com\/data-sheets\/qad-supplier-management\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD Supplier Management<\/span><\/a><span style=\"font-weight: 400;\"> manages all supplier information to reduce discovery, onboarding and qualification cycle time.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Production Execution<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Manufacturers achieve real value when they can access operational data across all information silos, to optimize production and respond when exceptions crop up. Having trustworthy operational data also results in better decision-making, improved customer satisfaction and more efficient inventory control.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/data-sheets\/qad-production-execution\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD Production Execution<\/span><\/a><span style=\"font-weight: 400;\"> delivers the operational data and production insights manufacturers need. It ties ERP and shop floor operational processes together in real time. Among its major features are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Optimized operator-centric interface \u2013 a highly visual, contextual and intuitive interface for automated and operator-initiated shop floor transactions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Comprehensive operational data capture \u2013 delivers time-stamped production order, operator and equipment events, to gain actionable analytics and respond to product traceability requirements.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Data-driven decision-making \u2013 cross-functional awareness of active status and immediate access to order progress allows for exception management and clearer insights.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Strategic information alignment \u2013 promotes uniform access to application data and a streamlined strategic application.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">System flexibility, integration and ease of maintenance \u2013 manufacturers can adapt to a wide variety of production environments while maintaining a standardized connection to core ERP and business systems functionality.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Global Trade and Transportation Execution<\/span><\/h2>\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/transportation\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD Precision Global Trade and Transportation Execution<\/span><\/a><span style=\"font-weight: 400;\"> (GTTE) features give manufacturers an end-to-end global solution to digitize and automate global trade logistics. It provides the means to manage the inbound and outbound flow of goods, control costs, respond to disruptions and increase ROI. The solution sets the stage for real-time collaboration and data sharing among supply chain partners and delivers access to a global carrier network. Manufacturers need 360\u00b0 visibility into trade and transportation operations. QAD Precision GTTE provides that visibility and also manages global trade regulation compliance and connects to regulatory bodies and customs agencies.<\/span><\/p>\n<p><b>Learn more about the latest <\/b><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/10\/introducing-qad-adaptive-erp-2021-1\" rel=\"noopener\"><b>QAD Adaptive ERP features<\/b><\/a><b> for managing global supply chain disruption.<\/b>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9941&#8243; img_size=&#8221;full&#8221;][vc_column_text]The global supply chain is facing a perfect storm of challenges, and dealing with it, according to GE CEO Larry Culp, \u201creally is akin to playing Whac-A-Mole.\u201d As one headache is eased, another pops up. And the current global supply chain disruptions may be sticking around longer than we might think. Manufacturers know [&hellip;]<\/p>\n","protected":false},"author":56,"featured_media":9941,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,2045],"tags":[340,1946,93,1945,1944,1943,1896,1696,92,1598],"class_list":["post-9940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-supply-chain-trends","tag-global-supply-chain","tag-global-trade-and-transportation-execution","tag-logistics","tag-qad-gtte","tag-qad-production-execution","tag-qad-srm","tag-shipping","tag-supplier-relationship-management","tag-supply-chain","tag-supply-chain-disruption"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What\u2019s the Best Response to Global Supply Chain Disruption? | QAD Blog<\/title>\n<meta name=\"description\" content=\"Here are recommendations for manufacturers to take to handle global supply chain disruption and tools and actions that can improve business.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.qad.com\/blog\/2021\/12\/whats-the-best-response-to-global-supply-chain-disruption\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What\u2019s the Best Response to Global Supply Chain Disruption? 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