1. Choose Any four of the seven Supply Chain Issues listed in the document below, for each of the selected challenge recommend 2 strategies to address aspects of each of the 4 challenges you selected (10 marks each strategy times 8 equals 80 marks). Each strategy should be supported by data and references. 2. Write an overall summary of your recommendations. (15 Marks) 3. References (5 Marks) What Supply Chain Issues Is Canada Facing in 2022? Online Article Adapted from the MacMillian Supply Chain Group, August 23, 2022 Fluctuations and uncertainty about the predictability of global supply chains have impacted the Canadian supply chain industry. Some aspects of the Canadian market have recovered, while others are still struggling. The Supply Chain Issues Canada is Currently Facing Supply Chain Issue #1: Increasing Inflation in Canada Ever since the COVID-19 pandemic, prices across the globe have increased. This, of course, has also affected the supply chain industry, and impacted how fast and efficiently goods can be moved from one location to another (i.e., price hesitation at different steps of the supply chain leads to decision delays). Experts claim that inflation numbers have been high for many different reasons, but also partially due to a shift in consumer demand in sectors such as entertainment, consumer electronics , and food products. Supply Chain Issue #2: Labour Shortages Across Canada One of most common reasons for increased costs in Canada are labour shortages. With less workers available, existing employees are often working overtime and demanding higher pay. Therefore, a rise in demand often cannot be met, resulting in supply chain disruption. Some other reasons for labour shortages are: An aging workforce retiring People quitting due to health issues Staff searching for more flexible jobs Not enough people meeting the job requirements People starting their own businesses A study by the Canadian Journal of Agricultural Economics highlights the impact of COVID-19 on employment and workers in different industries (in this case, food and agriculture) across Canada: "Lowwage workers were hit particularly hard, including restaurant workers. The production and distribution of food being essential and agrifood supply chains being resilient, other workers in the agrifood sector were less impacted by public health measures and the pandemic. Employment in grocery stores remained steady and employment of agricultural workers, including temporary foreign workers, proved more robust than expected. Dealing with contaminated workers proved challenging in meat processing plants. Temporary plant shutdowns and slowdowns created livestock queuing problems and temporary increases in meat prices. The federal and provincial governments implemented several programs to mitigate the pandemic's adverse effects on labor markets." Supply Chain Issue #3: Delay in Delivery Times More than ever, companies are struggling to find workers for production and distribution centers. When there's not enough staff to fulfill orders, shipments are delayed. This, in return, causes companies to invest more in technology and human resources to keep production going, contributing to rising prices. The trucking industry in Canada is also facing a staffing shortage, making increases in demand difficult to manage without delays. In some cases, goods must be left at the warehouse until enough drivers are available to ship them. In an article by Canada's National Observer, it's mentioned that the federal government will take action regarding transportation issues to recover Canada's economy: "The government also plans to spend money on projects that could immediately ease domestic supply-chain congestions, such as moving goods from backlogged ports," Alghabra said. Alghabra says there are signs that problems are beginning to ease, and suggests every step the government takes, and every policy it makes, will look to avoid straining trade problems anew. Supply Chain Issue #4: Raising Wages in Canada A shortage of workers results in a raise of wages, often because existing staff is working more hours. A common trend that has been observed throughout 2022, is that staffacross any E-Commerce or retail industryis paid overtime and or compensated in different ways to account for additional labour. Supply Chain Issue #5: Weather Unpredictability Unpredictable weather greatly impacts order fulfillment in Canada. During winters, snowstorms and blizzards can disrupt a supply chain and delivery times. This also happens during Hurricane season from June 1 to November 30. A reliable third-party logistics provider (3PL) stays up to date on the weather situation to minimize weather disruptions. Supply Chain Issue #6: The Effects of Globalization in Canada Problems can arise when exporting or importing goods between countries. With the increase of globalization (changing cross-border agreements), supply chains across the globe are seeing strong fluctuations. Some countries have regulations and restrictions in place that restrict the movement of goods, while others have more "open borders" that allow for a better flow of goods. Until better globalization protocols have been established, decision makers working with supply chains should expect to see fluctuations in efficiency. Supply Chain Issue #7: Increased Fuel Prices When fuel prices increase, companies have to invest additional money into the transportation of goods. This, in turn, leads to increased product prices, which can compromise customer satisfaction. References Larue, Bruno. "COVID19 and labor issues: An assessment." Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie vol. 69,2 (2021): 269-279. doi: https://doi.org/10.1111%2Fcjag.12288 Published on: August 23, 2022