Years after the onset of the COVID-19 pandemic, the global supply chain is still feeling the impact, as the crisis tipped off supply chain issues that have yet to be reconciled. This has many employers wondering how to maximize profitability during continued market uncertainty. 

Supply Chain Design Flaws

A major factor contributing to today’s market issues is how supply chain and warehousing models are currently set up. In recent years, due to global connectivity, the world relied heavily on “just-in-time” (JIT) supply models. These models focus on receiving orders precisely when needed to reduce storage costs for inventory and help increase product turnover. 

However, when a JIT model is disrupted at any point, the entire system slows down, putting it at risk. During the pandemic, this occurred on a massive scale across virtually every industry. 

As the challenges for creating and shipping goods linger—albeit to a lesser degree—there is still more demand than supply. This has kept inflation and prices on the high side.

Workplace Impact

Employers are concerned about the current market situation. Supply chain disruptions and elevated costs rarely lead to beneficial outcomes for anyone. Employers continue to see the confluence of these factors within their own workplaces, with top issues including:

• Difficulties attracting and retaining workers
• Struggles to offer competitive compensation amid high inflation
• Employees’ financial uncertainty
• Decrease in employee well-being

Potential Solutions

Many experts believe supply chain issues could linger for two to three more years. This makes it critical for employers to consider ways to overcome today’s challenges and stay flexible amid uncertainty. Here are some solutions a growing number of workplaces are exploring:

• More competitive employment perks – Compensation remains a top employee motivator, and, due to record inflation, some employers are increasing wages and benefits to stay competitive and aid retention.
• Improved employee flexibility – Workplace flexibility, such as remote working opportunities or flex scheduling, has emerged as a must-have perk for many employees. 
• Greater focus on worker well-being – As an increased number of employees are reporting feelings of burnout and financial uncertainty, employers are seeking solutions through voluntary benefits and other methods.  

Moving forward, overcoming the challenges presented by lingering supply chain issues will require inspirational leaders who can think creatively and be ready to adapt to developing situations.

We’re Here to Help

To learn more about supply chain issues and human resources solutions that can impact your business, reach out to the HR specialists at VTC Insurance Group. Call 248.828.3377 or visit vtcins.com.

This blog is for informational purposes only and is not intended as legal advice.