Energy and commodities – shortage becomes a crisis

Since 2020 shortages have become a concern that had not been relevant for supply chain managers in Europe for decades. Suddenly commodities like semiconductors or C-parts, the low-cost but essential parts of a product, such as screws or bolts, could not be supplied in time to keep lean production lines working. Shortages not only lead to higher prices, making certain businesses economically unfeasible, but are also capable of disrupting supply chains downstream.

In the past two years, problems have been further exacerbated by global events, including Brexit, the Coronavirus pandemic, and the war against Ukraine. Energy supply security has become a major topic in business and politics as the shortage of feedstock – the raw materials used to fuel machines and industrial processes – grows more acute. These energy and commodity crises have put huge movements into action, the effects of which can drastically alter current markets – governmental support for businesses requiring large amounts of energy, for instance, and the economic unfeasibility of gas-powered trucks.

Supply chains are in constant motion – and innovation promises to speed up the rate of change. With all these developments, businesses need to know where to focus their efforts to ensure the future viability of their supply chains. The 4flow trend monitor will provide a trend outlook highlighting important developments expected to have an impact on supply chain in the next one to five years.