PHOENIX - GlobalTranz Enterprises, LLC., a leading technology-enabled third-party logistics solutions provider, today released the results of a survey of U.S. supply chain leaders. The survey findings, published on the heels of GlobalTranz’s strong Q4 performance to close out 2020, revealed optimism around future supply chain performance while noting sustained challenges in solving final mile problems, rising transportation costs and workforce demands.
This latest survey from GlobalTranz shows a strong belief among supply chain leadership that we are in a robust economic rebound from COVID-19 and a feeling that supply chains are ready to meet surging consumer demand. The data comes a year after the initial pandemic disruption of supply chains, and follows GlobalTranz’s survey of supply chain leaders in the fall of 2020, which indicated that decision makers did not feel prepared for shifting logistics needs.
“Over the past year, companies serving both individual consumers and businesses have had to deal with changing buyer behaviors and inventory management techniques that have created significant supply chain volatility,” said Bob Farrell, Chairman and CEO of GlobalTranz. “This survey shows that while there is consistent optimism in an economic recovery, supply chain leaders understand that many new challenges lie ahead and that partnering with technology-centric logistics providers is critical to enabling visibility across supply chains, boosting e-commerce capabilities and meeting customer demands.”
COVID-19 Vaccine Impact and Future Outlook
Six months ago, companies were faced with record-breaking shipping volumes due to increased e-commerce demand on top of peak shipping demands during the period that preceded the holiday season from October through December. Supply chains continue to operate at these peak levels and consumer and business buying activity isn’t showing signs of slowing down in 2021.
Despite global supply chains being overburdened, decision makers still believe their own supply chains are prepared to meet consumer demand. Confidence in their logistics partnerships is high, with 91% of respondents agreeing that their 3PL partners will effectively meet their needs in 2021. This confidence in current partnerships to navigate the market and in the decisions made over the last few months is driving optimism in these decision makers ability to meet their business challenges.
With a confluence of economic and societal factors at play, only 1 in 10 decision makers reported a pessimistic outlook of their company’s revenue 3-6 months and even a year from now.
At the same time, decision makers took note of challenges that remain across their supply chains:
Adapting to New Market Demands
Survey data shows that supply chain decision makers feel that they have made appropriate adjustments to meet the heavy shift in e-commerce activity in the market, with 76% of respondents noting that their company has adopted a successful omnichannel strategy, a 20% increase from GlobalTranz’s October survey. At the same time, 84% of respondents reported that they’re seeing greater demand for final mile delivery services, with 69% struggling to find reliable transportation partners to meet this demand.
Continued market volatility into 2021 has forced decision makers to reevaluate supply chains:
Outside of immediate supply chain operations, at least 25% of respondents indicated investments in new products and services, customer retention and recruitment top the list of priorities for the year.
“With much of 2020 marked by the growing pains from the dramatic shift to an e-commerce dominated shipping landscape, we have seen companies effectively accelerate plans that were years down the road,” said Ross Spanier, Executive Vice President of Direct Channel Business at GlobalTranz. “To meet changing dynamics, we’re continuing to partner closely with our shipper customers to provide tech-driven supply chain optimization and managed transportation solutions tailored to their businesses and changing market, as well as collaborating with our carrier partners to efficiently transport goods during a time of economic transition.”
About the Survey
GlobalTranz commissioned Edelman Data & Intelligence to conduct a 10-minute quantitative online survey among a sample of 200 U.S. based supply chain leaders and managers between March 2-17, 2021 to understand how business leaders and managers are thinking about their supply chain in the context of the pandemic, macro industry trends, and as they plan for the year ahead. To qualify for the survey, respondents needed to: be 18 years of age or older, live in the US, employed full-time, work at a company with 500+ Employees, and either be a primary or partial decision-maker about their company’s supply chain management and logistics needs. As a member of CASRO in good standing, Edelman Data & Intelligence conducts all research in accordance with Market Research Standards and Guidelines.