While there's no denying supply chain logistics are always evolving, it's safe to say 2020 caused disruptions that most consumer goods brands aren't accustomed to seeing. Now, in 2021, there are new challenges companies must tackle to remain successful within the competitive e-commerce space. With that said, a shift to online retail, increase in consumer confidence,pent-updemand, andamassedsavings alladduptoatremendousopportunityfor digitallynativebrands.

Companies who survived the volatility of 2020 likely did so by way of getting lean, selling through inventory, and focusing on working capital. At times, the last year's challenges have no doubt felt unwieldy. Suppliers and manufacturers from all overtheworldhavelargelybeenputtothetest,encounteringmassive stockshortages,fulfillmentdelays,andlengthy backorders on common inventory items.

We expect that supply chain challenges will persist, to some degree, for the remainder of the year driven by increased consumerspend onproducts,sustainedappetitefortheconvenienceofbuyingonline, andcatchuprequiredfromlast year's bottlenecks. And yet, in spite of 2021's fragile supply chain network, companies are acclimating to these changes by addressing inefficiencies head on and seeking to work smarter, not harder.

The COVID-19 pandemic continues to disrupt the supply chain ecosystem with new and unforeseen barriers to both productivity and profitability. The following are 2021's biggest supply chain challenges faced by product-based businessesfrom all over the globe.

1. Materialscarcity

Insufficient inputs have been a concern since the pandemic began, due to an abrupt rise in consumer demand like never before. Even now, companies and suppliers alike are struggling to meet this demand in the midst of limited availability formany parts and materials. In speaking to growth stage brands in our network, we've encountered everything from furniture manufacturersfacingfoamshortages tobikemanufacturerslosingpayment termsduetomaxedoutcomponentsuppliers. Infact,arecentsurveyconducted bytheInstituteforSupply Management(ISM)revealed' record-longleadtimes,wide- scale shortages of critical basic materials, rising commodities prices, and difficulties in transporting products across industries.' In light of these scarce inputs, a brand's ability to sustain its growth is highly dependent on working capital to weather downtime and ramp up for peak seasons.

1. Increasingfreightprices

Contrary to initial expectations, the need for container shipping has increased considerably throughout the pandemic. With worldwidelockdown measuresincitingasurgeineCommercesales, theresponsehasbeenagreaterimport demandfor rawmaterialsandmanufacturedconsumer goods(alarge percentageofwhich aremovedinshippingcontainers).And since this demand was much more substantial than anticipated, it was met with insufficient shipping capacity and an unprecedented shortage of empty or available containers. As it often does, this scarcity has led to a spike in pricing. In thelast year, freight rates from China to the West Coast have jumped by 240%.

1. Difficultdemand forecasting

Demand forecasting in the middle of a global pandemic has added a new layer of complexity to many companies' supplychain management. The onset of COVID-19 essentially shattered the forecasts for countless retailers and suppliers of consumergoods/services,leaving themwithoutaguideastohowmuchinventorytostockormanufactureatanygiven time. The challenge, then, has come from trying to improve predictions for customer demand, while in many ways having to rely on gut instinct rather than data-driven research.

Inthissituation,supplychainmanagers areencouragedtoabandontheir bias,pursuenewdatasetsforforecast models, and continually refine their results for the greatest accuracy.

1. Portcongestion

Port congestion caused by the pandemic remains one of the top challenges for the world's supply chains, seeing as port owners, carriers, and shippers are collectively still scrambling for a viable solution to this problem. Congestion occurs whenever a ship arrives at a port but cannot load (or unload) because that station is already at capacity. Although the loading/unloading process typically goes according to plan, labor shortages and social distancing associated with thepandemic has notably steered things off course, creating major bottlenecks at a number of busy global docks. Due to this congestion andthebacklog ithascreated,amyriad ofcompaniesareunabletogettheir goodsoutthedoorontime which means carriers are also unable to adhere to their specified delivery commitments.

1. Changing consumer attitudes

Consumerattitudesandbehaviorshavechangedinsomebigwaysduringthepandemic, aswell,likeloweringthe thresholdfordeliverytimesandraising therequirementsforapositive customerexperience.Thechallengecomesin having an agile supply chain that can harness the power of automations to optimize fulfillment and handle accelerateddemand with ease. An excellent example of this supply chain flexibility comes from a multichannel order fulfillment services and inventory management software.

"The pandemic drove eCommerce demand to an all-time high. While a rise in order volume was a plus for merchants, new infrastructural needs and supply chain disruptions were major points of concern and the subsequent focus for our clients. Strategically, one of our biggest takeaways was the relationship management with customers through shared product forecasting, a defensive tactic that served to prevent negative experiences and maintain brand integrity."

1. Digitaltransformation

When it comes to supply chain operations, digital transformation and IoT can be a mixed blessing. Still, there are several technologies with potential to enhance the way we approach the traditional supply chain, including: artificial intelligence,dronesandrobots, electricvehicles,andon-demanddelivery. Buteventhoughthesesystems/servicesareintendedto make ecommerceprocessesmoreefficientandcost-effectiveinthelongrun,thechallengeliesinimplementingthem across a company's existing supply chain.

Question1 (25Marks)

With reference to the above case study, critically discuss how Artificial Intelligence (AI) can assist in creating more accurate and reliable forecasting to strive towards reducing the impact of the issues noted in the case study.

Question2(25Marks)

Inrelationtotheabovecasestudy,critically discussthe"Bullwhip"effectcausedbythesupplychainissues.

Question3(25Marks)

Basedontheabovecasestudy,criticallydiscusshow"Big Data"and"DataScience"canassistinreducing thecongestion at the port.

Question4(25Marks)

It has been argued in the case study above that, when it comes to supply chain operations, digital transformation and the InternetofThings(IoT)canbeamixedblessing.Critically discusshowtheIoTcanbeusedtocreatea"Lean

ValueChain" to reduce the issues discussed in this case study.