Disruptions, by nature, cannot be planned for. For global disruptions, such as a U.S. government shutdown, nearly all supply chains will face unexpected obstacles. Everything from freight times to inventory backlogs will impact the cost of goods. Add to that the immediate increase in consumer demands for the holiday season, and what might have been a minor disruption becomes a far-reaching one.
But there are ways to mitigate the effects of a government shutdown—even as the United States Congress prepares for negotiations to last through October. With end-to-end AI-powered supply chain solutions, companies can adapt to the changing circumstances of the day while proactively building plans for the future.
Making big decisions to spend more on new tools as the cost of manufacturing and delivering goods rises can be daunting (if not impossible). But it is an investment that will set companies apart and keep them on track despite disruptions.
AI-powered solutions expose the unknowns that hurt supply chains
One unique feature of a government shutdown, especially for supply chains, is the fluid nature of every day. Customs agents, for example, are considered essential workers, so ports will continue to stay open. But, as the shutdown extends and support for agents diminishes, ships will experience longer wait times. Companies need to build flexibility into their schedules to account for the fluid nature of these delays.
Of course, the shutdown could end with one decision, meaning planning for the worst-case scenario might be an inefficient use of time.
AI-powered solutions offer companies the best of both worlds—the confidence to act quickly and the insight to act wisely. By running continuous scenario planning, supply chain leaders can see what’s most likely to occur based on real-time data, making strategic decisions faster, smarter and more effective.
The ability to be proactive and make decisions from options, rather than necessity, can make the difference in everything from contract demands to consumer pricing.
New technology provides options in supply chain management
As the global marketplace becomes increasingly interconnected, disruptions like a government shutdown or new regulations will place new, more pressing demands on supply chain workers. Demands that will only be exacerbated by outdated technology.
Currently, for example, supply chain workers are being asked to find solutions for port delays that threaten perishable goods. Employees need to find new suppliers, organize new transportation routes and account for additional costs. All in an environment that changes every day.
Without AI-powered solutions, employees are locked into linear options for solving their challenges. They also have less visibility into the upstream and downstream effects of their decisions. Perhaps worst of all, they simply can’t work as fast as competitors who are using AI-powered solutions. In the case of sourcing new suppliers, the options presented on a Monday may already be obsolete by Wednesday, putting managers right back where they started.
Support your team—and help mitigate the costs of disruptions—by investing in the most powerful tools available for them.
The future will only get more complex
Government shutdowns, tariffs and other global events will continue to affect the supply chain. We’re at the point now where instead of trying to get faster at reaction times, supply chain leaders need to start building resilience and agility into their foundation. We may not be able to strategize for the exact disruption on the horizon, but we can ensure we’re ready to handle it with the right tools and strong support for the employees who use them.
