We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Supply chains “back to square one”
Press releases are provided by companies as is and have not been edited or checked for accuracy. Any queries should be directed to the company issuing the release.

Upload your press release

Supply chains “back to square one”

April 19, 2022
No Comments

Tradeshift’s latest Index of Global Trade Health showed total transactions (invoices and orders) between buyers and suppliers on its platform dropped a further 7 points below the forecast range in the first quarter of 2022. Order volumes were particularly badly affected by a cocktail of high inflation, longer lead times and key component shortages. New orders tumbled by 16 points in Q1, the steepest loss of momentum since the first lockdowns in 2020.

With large organizations seemingly bedding in for a challenging period, suppliers are likely to come under renewed cash flow pressure over the coming months as big businesses look to preserve their own cash reserves. Tradeshift’s data shows late supplier payments averaged 15.9% of the total volume over the past six months, nearly double the number in the six months prior to the pandemic.

“Russia’s aggression in Ukraine and the lockdowns in major cities across China are creating a convergence of new and familiar pressures,” said Christian Lanng, CEO and co-founder at Tradeshift. “Building up cash reserves might seem like an act of self-preservation on the part of buyers, but it can quickly become an act of self-harm when suppliers start to struggle. Large organizations need to stop seeing suppliers as a cheap line of credit and start looking at financing options that keep both them and their suppliers solvent in a highly volatile environment.”

Tradeshift’s analysis indicates that buyers and suppliers are facing a similar range of pressures in supply chain hubs across the world:

- Eurozone: transactions fell a further 14 points against the expected range, wiping out much of the recovery of the past 18 months. Order volumes dropped by an alarming 28 points as the Ukraine crisis turbocharged commodities prices and caused further disruption across key supply chains.
- US: momentum dropped by 6 points. US ports braced themselves for fresh congestion as a result of lockdowns in Asia while rising energy costs also hit orders
- China: Transactions fell by a further 3 points in Q1, the third quarter in succession that activity has fallen against the expected range.
- UK: Total transaction growth was a point higher than the forecast range in Q1, but overall growth since the pandemic is still barely half the expected level.

Tradeshift’s data suggests suppliers in countries bordering the US are already benefiting from moves by multinationals to “nearshore” their supply chains. Invoice traffic from Mexican suppliers has risen at 4.1 times the global average over the past year. Canadian supplier invoices were 3.1 times higher than the average. The findings align with a report by Mckinsey that predicts reshoring and nearshoring will relocate up to 26% of world production in the next five years.

“2022 has opened a new chapter in what has become an age of uncertainty for global trade,” said Lanng. “In this new reality backlogs and breakdowns are becoming the new normal while connectivity, transparency and agility are basic operating principles rather than vague ambitions. Globalization may well be on the wane, but resilience will depend on supply chains becoming more connected, more diverse, and more collaborative than ever.”

https://tradeshift.com/global-trade-report/
Submit your logistics, material handling, or supply chain related company news in Supply Chain Quarterly's's Industry Press Room section or New Products section
KEYWORDS Tradeshift
  • Related Articles

    Global supply chains are struggling to keep pace with spiking orders volumes, Tradeshift data reveal

    Challenging outlook for global supply chains as costs rise while orders fall

    Global order volumes drop sharply in Q3 as supply chain issues put recovery on ice

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • New Jersey truck fleet says Freightliner tractors will deliver safety as well as freight

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing