Global Supply Chains Struggling to Keep Pace with Spiking Order Volumes

A recent surge in order volumes is creating fresh challenges for suppliers after a year of intense disruption, new transaction data from Tradeshift reveals.

 

According to Tradeshift’s latest Index of Global Trade Health, order volumes jumped 16.9% in Q1 and one in five suppliers are concerned about their ability to keep pace with demand. The strain on supply chains is particularly acute among manufacturers. Order volumes across the sector were up by 80% year on year in March, but invoice volumes grew by just 20% over the same period.

 

In a survey of suppliers, Tradeshift found that nearly a third of respondents had seen their cash flow position deteriorate over the past six months.

 

“The pattern we’re seeing in our data suggests supply chain activity is beginning to find its level and that level is currently set at one hundred miles per hour,” said Christian Lanng, CEO, Tradeshift. “A lot of suppliers have been left beaten up by events of the past year. Now they’re being asked to run a marathon without any fuel in the tank. It’s no wonder cracks are starting to appear, particularly in the manufacturing sector.”