News

Ongoing Supply Chain Disruption Creates Opportunity 

Companies That Prioritize a Reliable Supply Chain Can Gain Market Share in 2022
Delivery Times to Improve

Businesses that prioritize supply chain reliability can gain a competitive advantage in the year ahead, according to a 2022 outlook report recently released by Umpqua Bank, “Headwinds & Opportunities: Economic Trends & Predictions for Businesses in 2022.”

“As we look ahead to 2022, supply chain issues will likely improve but remain challenging,” said Richard Cabrera, head of middle market banking at Umpqua. “To stay competitive, companies will need to have a detailed understanding of their supply chain relationships and, if needed, alter how they buy raw materials to manufacture products better, more efficiently, and more cheaply. Manufacturers, distributors and other enterprises that can successfully navigate ongoing supply chain disruption will have a strategic advantage over many of their competitors.”

Notable supply chain insights from the report include:
• Businesses should see a gradual improvement of supply chain fluidity as companies play catch up. Delivery times will narrow and become more reliable.
• An anticipated shift in consumer spending from goods to services should also help ease some of the pressure on the system, and delivery times will improve.
• Businesses should learn lessons from recent supply chain disruptions and carefully reevaluate their sourcing, inventory, manufacturing, and pricing strategies.
• Companies that prioritize a reliable supply chain can gain market share in 2022. Business leaders should ask where their supply chain is most vulnerable and how to solve for it.
• To solve supply chain challenges, companies shouldn’t be afraid to borrow, but not in excess.

Businesses should carefully manage inventory at levels where they’re relatively confident it can be liquidated. For the full report, visit: www.umpquabank.com/2022-trends.