Amidst the interconnected web of global commerce, middle market companies are strategically leveraging international supply chains to enhance competitiveness, despite encountering both advantages and obstacles along the way.
A newly released research report, a collaborative effort between the National Center for the Middle Market (NCMM) and the Center for International Business Education and Research (CIBER) at The Ohio State University Max M. Fisher College of Business, sheds light on the evolving landscape of global supply chain engagement among middle market firms.
Surveying 406 supply chain leaders from the middle market segment, the report unveils a robust presence of companies participating as buyers or sellers in global markets. Notably, 60% of respondents identified revenue growth as the top benefit for international sellers, while 72% of purchasers emphasized cost savings as the primary advantage of engaging in international supply chains.
The research also underscores the trend of expansion into new international markets, with one in five middle market companies venturing into foreign territories in 2023. Anticipating further growth, 45% of sellers and 37% of purchasers express intentions to expand their international supply chain footprint in 2024.
However, the journey into international supply chains is not without its challenges. Longer lead times emerged as a top concern for purchasers, while sellers grapple with quality control issues. Mitigating risks remains paramount, with insurance and diversified supplier bases being key strategies adopted by sellers and purchasers, respectively.
Despite these challenges, confidence in international supply chains remains high among middle market companies. Yet, a critical hurdle highlighted by the research is the shortage of domestic talent equipped with international supply chain expertise, emphasizing the need for language proficiency, cross-cultural awareness, and international competence among employees.
Professor Michael Knemeyer, a logistics expert and co-author of the report, emphasizes the necessity of investing in human capital to ensure the optimal functioning of international networks. Collaboration between academia and industry, as exemplified by the partnership between NCMM and Fisher’s CIBER, plays a pivotal role in addressing these challenges and promoting international business understanding and competitiveness.
The joint research underscores the significance of fostering a robust global supply chain ecosystem within the middle market segment, highlighting opportunities for growth and the imperative of overcoming operational hurdles to thrive in the interconnected global marketplace.
The St. Louis Regional Freightway is gearing up for the 7th annual FreightWeekSTL, scheduled from May 13 to 17, 2024. This week-long event promises a dynamic blend of virtual and in-person activities, including a riverboat tour and engaging discussions, all centered around the latest innovations and trends impacting freight movement. With a focus on highlighting the pivotal role of the St. Louis region in advancing major infrastructure projects and supporting the global supply chain, FreightWeekSTL is set to provide invaluable insights for industry professionals.
Mary Lamie, Executive Vice President of Multimodal Enterprises for Bi-State Development, expressed excitement about hosting FreightWeekSTL once again. The event aims to address challenges, showcase innovations, and underscore investments influencing the global supply chain. Lamie emphasizes the significance of the St. Louis region in bolstering freight movement and fortifying the logistics and manufacturing sectors.
While the majority of conference activities will be conducted virtually, there are opportunities for in-person interaction. Participants can join a riverboat tour on the Mississippi River to explore critical elements of the region’s multimodal freight network. The Freight Summit Luncheon will feature discussions on Infrastructure Investment as an Economic Driver, along with the unveiling of the 2025 Priority Projects List. The event will conclude with a Tailgate Happy Hour prior to a thrilling MLS soccer game.
A series of virtual panel sessions will delve into various topics, including technological innovations, supply chain visibility, collaboration, and trends impacting agriculture and the barge industry. Notable speakers such as Rob Cook from Sheer Logistics and Ken Eriksen from Polaris Analytics & Consulting will share insights and expertise on navigating the evolving landscape of freight movement.
Additionally, FreightWeekSTL will highlight workforce opportunities within the logistics and manufacturing sectors, showcasing ongoing collaborations aimed at nurturing talent in the St. Louis region. The event will also unveil the latest Industrial Real Estate Market Report, emphasizing the region’s industrial strength and global connectivity.
With an exciting lineup of activities and discussions, FreightWeekSTL 2024 promises to be an enriching experience for industry professionals, whether attending in-person or virtually.
Retail in the United States is a 7 trillion-dollar industry that employs millions of Americans, and it is supported by a complex web of global supply chains. While necessary and advantageous to the competitiveness of the industry, this worldwide supply chain network makes geopolitical issues more likely to increase risk and cause disruptions.
Many large U.S. retailers have stores in other countries, but virtually all companies source materials from around the world to bring the best merchandise to consumers. Managing massive global networks requires a complex risk breakdown structure to account for the uncertain state of geopolitics, tariffs and climate events in the world today. Strategies to assess risk vary from retailer to retailer but there are common elements.
Diversified sourcing portfolio: Diversification helps spread risk exposure as retailers seek to mitigate the risks or challenges with a particular country. Geopolitical issues, U.S. policy priorities, and trade disputes have significant implications for retailers’ sourcing decisions. For example, tensions in the U.S.-China relationship, coupled with increased U.S. import taxes on Chinese goods have created conditions that have accelerated many companies’ already-ongoing diversification initiatives. Large retailers may source from as many as 40 countries; much like a stock portfolio, diversification helps spread the risk.
Responsive supply chains and logistics: The crisis in the Red Sea is the latest example of a distant regional issue that has immediate and significant impacts on global commerce. The last Suez Canal disruption in 2021—caused by a single ship that ran aground in the canal—cost the global economy $10 billion a day in lost productivity. Savvy retailers have built supply chains that are responsive to localized flare-ups, e.g., labor disputes, and they adapt and reroute to ensure that merchandise still gets to retail stores and American consumers on time. Today, while container ships are avoiding the Red Sea, retailers are mitigating impacts in a variety of ways, including by diverting to trans-Pacific trade lanes, utilizing the constrained Panama Canal, and opting for air freight.
Collaboration with partners: Lean global supply chains require close partnership with both suppliers as well as logistics service providers. This is a critical element of a responsive supply chain. For example, the increasing turmoil in the Red Sea continues to cause delays that may add ten to fourteen days to the transit time. This disruption has compelled retailers to work closely with vendors to accelerate production timelines and it also demands a collaborative relationship with carrier partners, to ensure retailers can reroute and shift volumes to mitigate disruption.
An increasingly volatile world requires that retailers build—and continually evolve— their supply chain risk structure. Retailers will be exploring geopolitical risks and global supply chains at this month’s RILA LINK Retail Supply Chain Conference, with core content focused on issues retailers need to prepare for, and what leading retailers are doing now to ensure their supply chains are resilient and ready to overcome current and future supply chain constraints. Join us at www.rila.org/LINK.
Companies engaged in global trade can apply for access to the drawback program administered by U.S. Customs and Border Protection (CBP). This program provides a refund on duties and taxes that were previously imported and have now been exported.
Usage of the drawback program is a tool companies can use to reduce operating costs. The program may be used for goods that are unused, rejected or manufactured.
The drawback program has several key factors that provide leverage to eligible companies.
THE PROCESS
The process to submit a drawback claim and collect a duty refund is an evidence-based undertaking. Companies must have the required import, export and inventory documentation to support the drawback claim.
The drawback applicant prepares a detailed sample to CBP including lot numbers or product stock keeping units (SKUs) to tie the product to the import and export transaction. This presentation is submitted to CBP electronically using approved software.
Documentation specifically supporting the drawback claim will include bills of lading, commercial invoices, packing lists and 7501 entry forms for the inbound portion.
Documentation supporting the outbound piece will include the commercial invoice and bill of lading. Exports to Canada and Mexico will also require data elements from the Canadian B3 and the Mexican pedimento (CBP 7501 equivalents).
RETRO ADVANTAGE
Drawback claims may be filed for up to five years from the import date. When this occurs, it can be a windfall for a company resulting in a sizeable check when the retroactive drawback claims are paid.
It is key to appreciate that it takes some digging (excavating) through documents, receipts and recordkeeping systems to obtain historical data.
In the event a company determines it does not have complete documentation to support the claim, they will find themselves requesting this documentation from their customs brokers, freight forwarders, carriers and third-party providers.
Therefore, it is incumbent upon a company to ensure they are maintaining accurate and required documents as part of their import/export recordkeeping process. This may also require working internally with the finance and information technology (IT) department to obtain the necessary details required.
NOT THE “IMPORTER OR EXPORTER”
A company may submit a drawback claim for goods on which they may not have been the importer of record or the actual exporter. This can be a bit tricky to manage.
For the import side, the company would need to be able to collect evidence that the domestic purchase price included duties and taxes and an ability to support that claim from the supplier. The CBP7501 data elements would also be required to submit the drawback claim. The actual importer of record may be reluctant to provide this level of detail. The assistance of a third party to broker and address this challenge can be beneficial.
Where the drawback claimant is not the exporter, the company will need to obtain an export waiver from the actual exporter. Additionally, the supporting documentation will be required to provide the export data elements.
This process is doable and over the years, we have helped companies successfully meet this challenge. However, we would be remiss not to mention it requires a substantial amount of coordination and collaboration with sellers and buyers (vendors and customers).
Service providers with robust technology platforms can also be helpful in providing the necessary data.
FORMS OF DRAWBACK
In weighing a company’s eligibility for drawback, it is important to understand the different types of drawbacks. The most common types are:
Unused Merchandise
Manufactured Merchandise
Rejected Merchandise
Destruction
There are other types of drawbacks that are specialized and focus on specific industries and business models.
DRAWBACK CHALLENGES
The challenges faced in coordinating drawback claims may include management support, cross organizational support, IT support, data collection and data integration. These challenges can be resolved through an organized and responsible management process, utilization of professional support and being both diligent and patient through the process.
To manage these challenges successfully, over the past 20 years we have developed a four-step process:
Assessment
Financial Model
Operational Model
Application
The process begins with an intellectual assessment of your company’s likelihood (or not) to benefit from a drawback program. The financial model creates the costs and the gains associated with a drawback claim to assure a responsible and realistic return on investment.
ADDITIONAL FACTORS
The drawback process has been somewhat simplified by the ability to submit a combined application. This application will include a waiver of the notice of intent to export for past exports, a waiver of notice of intent for future exports, and a request for accelerated payment of the drawback claim by CBP.
NEXT STEPS
Should you decide you are interested in a drawback, options for additional information and next steps include accessing the websites of both CBP and Blue Tiger.
Drawback | U.S. Customs and Border Protection (cbp.gov)
Management Consulting | Blue Tiger International (bluetigerintl.com)
We recommend first assessing the opportunity and benefits of committing to drawback to decide the need to move forward. Once that decision has been made, create a financial model addressing costs and time required to manage a drawback program to determine the return on investment and justify the decision to move forward.
Should the ROI be sufficient to move ahead, you need to assess what operational changes will be needed to collect the necessary data on imports and exports to create an accurate and detailed drawback claim.
Consider aligning your company’s technology with the required data elements or work with a drawback intermediary who will act as an interface on your behalf. These companies typically charge a fee of 5% to 25% of monies collected, paid on a contingent basis. The amount is determined by the degree of difficulty in making the specific drawback program function as required by CBP.
The use of a consultant or drawback intermediary is a potentially good option as they will smooth out the process and expedite the ability to avoid delays, address challenges and, most importantly, help expedite payment of your drawback claim.
Author Bio
Thomas A. Cook is a seasoned global supply chain professional, author of more than 20 books on global trade and managing director of Blue Tiger International. He can be reached at tomcook@bluetigerintl.com or (516) 359-6232.
It’s been a grueling couple of years for global supply chains. Covid granted challenges previously unimaginable, and geopolitical disruptions are poised to be equally demanding over the coming months, if not the year. Swings in demand will test the planning of freight and logistics companies as will the redrawing of trade maps that had existed for the working life of most employees.
One of the biggest wins for many CEOs post-Covid was their ability to clear inventory. This was welcome news to shareholders as companies were grasping for reliable demand models during the roller-coaster pandemic years. The inventory-to-sales ratio has remained steady at 1.30 since May 2023 and firms welcomed an additional win with a 3.1% holiday sales bump compared to 2022. All this suggests that the “just-in-case” hoarding strategy of the pandemic years is over and retailers are easing back into a “just-in-time” strategy.
The trucking industry was rattled in 2023, marred by bankruptcies and layoffs. If demand picks up a recovery in freight rates is possible for 2024, yet overall freight flows are tied to some very vulnerable international entanglements. Another interesting wrinkle for 2024 is the shift away from China. Importers have made noticeable inroads with countries like Mexico, Vietnam, and India as alternative suppliers. In 2023 Mexico eclipsed China as the number one US trading partner and logistics and freight companies reported heavy-duty tractor orders from Mexico up 150% in November of 2023 compared to the same month a year prior.
The Disruptors
The wars in the Middle East and Ukraine continue to disrupt the flow of everyday consumer goods including oil and grain. The Mexican border is also a point of concern with a migrant surge that has required the US Customs and Border Protection to address via periodic truck and rail closings.
Houthi rebel attacks from Yemen are compromising the Suez Canal, while the Panama Canal suffers from a lack of rainfall. The latter has reduced the quantity of vessels through the canal, a vital trade corridor between the East Coast of the US and Asia.
Finally, shipments to US East Coast and Gulf Coast ports languished during the final months of 2023. This was a boon for West Coast ports resulting in double-digit gains over the previous year. The maritime industry is keeping a close watch on a potential dockworkers strike at the East and Gulf Coast ports unless a new labor agreement can be resolved before September of this year.
The GEP Global Supply Chain Volatility Index, a key indicator monitoring demand, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses, remained in negative territory at -0.34 in November. This indicates an eighth consecutive month of spare capacity in global supply chains, suggesting a persistent manufacturing slump into 2024.
Todd Bremer, Vice President of Consulting at GEP, highlighted the ongoing excess vendor capacity, signaling that the end to the global manufacturing recession is still distant. North America stands out in resisting global economic headwinds, while Asia’s sustained excess supplier capacity gives manufacturers leverage to drive down prices in 2024.
GEP Global Supply Chain Volatility Index
November saw a continued weakness in demand for raw materials, components, and commodities, with North America showing signs of recovery. Output and new orders at intermediate goods makers in the U.S. improved. Conversely, Europe faced a severe demand slump, and Asia experienced one of the greatest degrees of underutilized supplier capacity since the post-pandemic era began, posing challenges for the global manufacturing outlook.
Key Findings for November 2023:
– DEMAND: Despite a softer downturn, weakness in demand persisted globally, with North America and Asia showing less aggressive cuts to purchasing compared to considerable declines in Europe.
– INVENTORIES: Global businesses remain cautious about building up stocks, with inventory managers reluctant to hold surplus stock in warehouses.
– MATERIAL SHORTAGES: Reports of item shortages fell in November and remained at their lowest since January 2020.
– LABOR SHORTAGES: Reports of backlogs due to labor unavailability remained historically subdued, indicating unconstrained production capacities.
– TRANSPORTATION: Global transportation costs stabilized, holding close to the long-term average in November.
Regional Supply Chain Volatility:
– NORTH AMERICA: The index rose to -0.21, its highest level since April, suggesting that the manufacturing downturn has passed its peak in the U.S.
– EUROPE: The index rose to -0.85, indicating significant economic weakness and a looming recession for the continent.
– U.K: An increase in the index to -0.58 tentatively suggests that the U.K.’s economy may fare better than some of its European peers, but suppliers still experience considerable spare capacity.
– ASIA: The index rose to -0.24, still indicating one of the greatest degrees of vendor spare capacity in the post-pandemic era.
Amidst renewed whisperings of an impending recession in the second half of 2023 and the possibility of a debt default by the U.S. government that could trigger unemployment and surging interest rates, importers and logistics service providers (LSPs) are bracing for a potential hard landing. On balance, however, there are signs that a number of the challenges to global supply chain performance in 2023 are abating.
BIG GAINS IN IMPORT VOLUMES
Partly driven by a spike in imports from China, U.S. container import volumes increased significantly in April 2023, rising 9% from March 2023 (Figure 1). Although container volume was down 17.8% from April 2022, imports were up 5.3% from pre-pandemic April 2019 and are continuing to track to 2019 levels—an encouraging trend.
Figure 1: U.S. Container Import Volume Year-over-Year Comparison
Source: Descartes Datamyne™
In a dramatic reversal of its downward trend, Chinese imports into the U.S. increased 26.7% in April 2023 compared to March volumes—representing 82% of the total volume increase from the top 10 countries importing into the U.S—although still down 26% from the August 2022 high. Compared to March 2023, April import volumes from Hong Kong (24.4%), Taiwan (19.3%), and Vietnam (13.8%) also increased significantly. In April 2023, China represented 36.8% of the total U.S. box imports, an increase of 5.2% from March, but still 4.7% below the high of 41.5% in February 2022.
PORT PERFORMANCE IMPROVING
In April 2023, U.S. container import volume at the top 10 ports increased 167,174 TEUs from March levels, with the Port of New York/New Jersey showing the greatest overall container volume increase (54,466 TEUs), followed by the Port of Savannah (24,923 TEUs). Given that the dramatic increase of Chinese imports in April should have favored West Coast ports, this growth pattern is somewhat counterintuitive.
Notably, despite the increased activity, port delays declined significantly at all of the top ports (Figure 2). Signaling that global supply chain challenges are subsiding, port transit times were at their lowest level since 2021.
Figure 2: Monthly Average Transit Delays (in days) for the Top 10 Ports
Source: Descartes Datamyne™
Note: Descartes’ definition of port transit delay is the difference as measured in days between the Estimated Arrival Date, which is initially declared on the bill of lading, and the date when Descartes receives the CBP-processed bill of lading.
CHALLENGES EASING
Importers and LSPs will be relieved that the two sides in the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) negotiations are inching towards a new contract. Talks have been dragging on since May 2022 (the contract expired July 1, 2022) but PMA and the union have reached agreement on “certain key issues.” However, PMA commented that several important issues remain unresolved and work actions led by ILWU Local 13 at the Ports of Los Angeles and Long Beach continue to disrupt some operations at key marine terminals.
While some major shippers have been diverting cargo from the West Coast to ports on the East Coast and Gulf of Mexico to avoid potential work stoppages, there has been no serious impact on container processing, as has occurred in the past. The final resolution of the contract could bring some Asia-originating containers that had shifted to rival ports back to major California ports to take advantage of the shorter transit times.
While energy prices are generally moving in the right direction, fuel costs remain elevated, exerting continued pressure on the transportation budgets of importers and LSPs. The price of gasoline—a significant contributor to high inflation rates—increased slightly to $3.60/gallon but was down $0.58/gallon from the same time in 2022, according to the U.S. Energy Information Administration.
Diesel costs also fell slightly to $4.02/gallon, a $1.49/gallon drop from April 2022. While declining fuel costs is always good news for logistics and supply chain companies, gasoline and diesel prices are likely to remain elevated for the foreseeable due to the disruption of global energy markets caused by the war in Ukraine and follow-on sanctions against Russia.
MANAGING SUPPLY CHAIN RISK
Although recent developments appear to indicate an easing of supply chain turbulence, importers and LSPs should keep an eye on several factors and ongoing issues that could cause further disruptions, tailoring their logistics and supply chain strategies accordingly to mitigate risk and promote financial stability.
1. Union issues and labor laws:
Logistics companies should closely monitor the progress of the IWLU-PMA contract negotiations. Progress is tediously slow but movement in either direction will impact port performance and the ability of importers to efficiently move their goods where they need to go. In addition, California’s AB5 legislation has the potential to cause more disruption at California’s port operations.
2. Port activity:
Importers and LSPs need to keep a close eye on import volumes and port transit times. Recent U.S. container imports are continuing to align with 2019 volumes but, if monthly TEU volumes surge to between 2.4M and 2.6M, as witnessed during the pandemic, ports and inland logistics would be under significant strain.
Logistics companies should continue to seek out less congested transportation lanes, including smaller ports, to improve supply chain velocity and reliability. Evaluating alternative transportation lanes into the U.S., including entry through northern and southern borders and inland ports, is also a smart strategy to allay risk.
If port transit times decrease, as they did in April, it’s an indication that the efficiency of global supply chain capabilities has improved or, alternatively, that the demand for goods and logistics services is declining. Either way, pressure on the ports is relieved—good news for logistics-oriented companies.
3. Russia/Ukraine war and inflation
Importers and LSPs should monitor the ongoing impact of the Russia/Ukraine conflict on their logistics costs and capacity constraints, while ensuring that their key trading partners are not on sanctions lists.
On the economic front, the latest Consumer Price Index report available (March 2023) showed a continuing decline in inflation, but the inflation rate remains elevated. Fuel prices—inextricably linked to inflation and a major component of logistics companies’ operational costs—should be monitored closely. Given that fuel prices will remain elevated indefinitely due to the war, logistics companies should evaluate ways to increase the fuel efficiency of their fleets, such as route optimization software or alternative-fuel vehicles.
4. Ongoing pandemic impacts
While WHO recently declared that Covid-19 no longer represents a global health emergency—and the U.S. followed suit, terminating its federal COVID-19 Public Health Emergency act—the pandemic continues to impact global supply chain performance, especially in China. In fact, a 2023 analyst report declared that sourcing from Chinese manufacturers is tied to the largest supply chain risks; the possibility of delays and cancellations from Chinese suppliers is high due to the likelihood of COVID-19 localized disruptions in the country.
FINAL THOUGHTS
The good news is that the pressure on supply chains and logistics operations is continuing to ease. However, we’re not in the clear just yet. Several challenges—from labor issues, elevated fuel prices, and economic uncertainty to the impact of the war in Ukraine and the lingering pandemic-related disruptions—continue to stress logistics operations. But by proactively monitoring key supply chain performance and economic indicators, importers and LSPs can address any capacity constraints or supply chain disruptions that may arise in the short term, while building long-term supply chain resilience to mitigate risk in the latter half of 2023 and beyond.
Facing a Growing Threat, More Than 70 Percent Confirm that Current Application Security Solutions Fail to Protect Companies From Software Supply Chain Security Risks
Global research commissioned by ReversingLabs, the market leader in software supply chain security, and conducted by Dimensional Research, revealed evidence that organizations recognize, and have been impacted by, software supply chain security threats. The ReversingLabs Software Supply Chain Risk Survey found that nearly 90 percent of technology professionals detected significant risks in their software supply chain in the last year. More than 70 percent said that current application security solutions aren’t providing necessary protections.
Dimensional Research surveyed more than 300 global executives, technology, and security professionals at all seniority levels directly responsible for software at enterprise companies. The ReversingLabs Software Supply Chain Risk Survey set out to identify the sources of software supply chain security issues across internally developed, open source, third party and commercial software, as well as the frequency of these issues. Through the research, ReversingLabs also sought to investigate the maturity of organizations’ software supply chain security program; the tools currently used; and the perceived value of those tools in addressing the security of the software supply chain.
Key findings of the ReversingLabs Software Supply Chain Risk Survey include:
Software Supply Chain Issues Fuel Ongoing Business Risk
Nearly all respondents (98 percent) recognized that software supply chain issues pose a significant business risk, citing concerns beyond code with vulnerabilities, secrets exposures, tampering and certificate misconfigurations. Interestingly, more than half of technology professionals (55 percent) cited secrets leaked through source code as a serious business risk followed by malicious code (52 percent) and suspicious code (46 percent). Recent public attention on secrets exposure from CircleCI and other breaches has heightened awareness of this emerging issue. Software tampering was cited by 38 percent of professionals in the study as a serious risk. The disclosure of the recent 3CX supply chain attack may drive more attention to that issue.
These sources of risk led to problems for the majority of respondents: almost nine out of 10 companies detected security or other software issues in their software supply chain in the last 12 months. While open source software has long been viewed as the main culprit for software supply chain security issues, the research reveals that internally developed software (47 percent) is nearly tied with open source (49 percent) for the leading source of software issues, followed by commercial software (30 percent).
Enterprises Lack Control of the Software Supply Chain…and They Know It
Despite the prevalence of software supply chain risks, most enterprises are ill-equipped to identify and mitigate those risks, according to the findings of the survey.
Survey participants overwhelmingly (88 percent) recognized that software supply chain security is an enterprise-wide risk, but only six out of 10 felt their software supply chain defenses were up to the task. Acknowledging the issue, 80 percent disclosed that their company is directly focused on improving security for the software supply chain.
The complexity of modern software development is partly to blame. For example, more than half of companies developing software that responded to the survey said they used contractors and third-party development companies as part of their software development process. The reliance on third parties increases cyber risk. In fact, according to the World Economic Forum’s Global Cybersecurity Outlook 2022, indirect cyberattacks—successful breaches coming into companies through third parties—increased to 61 percent from 44 percent in the last several years.
Application Security Solutions Leave Gaps in Software Supply Chain Protection
The lack of proper tools may be exacerbating software supply chain risk. Almost three quarters (74 percent) of professionals surveyed agreed that traditional application security solutions, including software composition analysis (SCA), static application security testing (SAST) and dynamic application security testing (DAST), are ineffective at protecting companies from modern software supply chain threats.
Application security testing and software composition analysis solutions are important components of software supply chain security. However, they only address specific risks such as software vulnerabilities, while leaving gaps. Companies recognize these solutions alone, or even in combination, are not enough, and nearly all agree (96 percent) that a dedicated software supply chain security (SSCS) solution is very important, enabling teams to securely control the release of software via the detection of software supply chain threats, malware, malicious behaviors, tampering and secrets exposures.
Wanted: Dedicated Software Supply Chain Security
Further defined to respondents, SSCS is described as going beyond SCA solutions that only provide open-source licensing compliance and vulnerability detection, and SAST and DAST solutions that analyze source code quality for vulnerabilities.
Software supply chain risks demand evolved application security capabilities that confront the full spectrum of challenges introduced by internally developed, open source- and third party components, commercial software, and binary misconfigurations. ReversingLabs comprehensive Software Supply Chain Security (SSCS) platform surpasses just addressing vulnerabilities and license compliance issues in open source components, providing inspection of internally developed binaries, commercial and third-party code and identifying malware, malicious behaviors, misconfigured certificates, evidence of tampering, version differencing, and secrets detection and prioritization.
Supply chain issues have been a common topic worldwide over the last few years. Supply chains rely on a vast network of resources, technology, storage, and transportation to keep the process moving to distribution. When these processes are disrupted, it takes time to recover, which devastates providing goods and services. The United States supply chain crisis started in 2020 with COVID-19 and government shutdowns and has continued to grow due to supply and demand imbalances, lack of visibility and coordination, supplier disruptions, quality control issues, trade wars, and factory shutdowns.
Some significant products affected by supply chain issues in 2022 include groceries and food, tampons, baby food, aluminum, and semiconductors utilized for electronics. These shortages have many industries fearful of future failures within the supply chain industry. So how can companies and individuals deal with this fear of failure? We will tell you in this article.
Things are looking up
First of all, it’s important to remember that things are looking up. Supply chain issues have led to greater awareness and investment in supply chains to prevent future problems. It’s predicted in 2023 that there will be fewer supply chain issues, and we will be better prepared to handle situations as they arise.
According to Gardner, within five years, 80-90% of supply chains plan to adopt changes that will help them be more effective, such as commercial innovation, achieving sustainability outcomes, real-time decision-making, and a human-centric work design. These changes will help supply chains better meet ever-changing growth expectations. You can find some peace knowing mitigation and steps for change are taking place.
How to deal with and prepare for failure
Even with changes, fear of failure is still common for many of us. There are companies like Be in Health that can help us learn how to overcome our fears. There are some steps you can take to help you be in the right mindset to handle your fears around supply chain failure.
These include the following:
Acknowledge and Accept
Start by acknowledging that it is normal to have a fear of failure, especially in an industry that is essential and competitive.
Find the Root Cause
Determine the specific reasons behind your fear of failure. Whether it is related to a particular project or task, invest time and seek guidance to help you through the process to help ensure its success.
Set Goals
Ensure your goals are realistic, as unrealistic goals intensify fear. Ensure your goals are aligned with your skills, resources, and timeline and are broken down into tasks that will make the process less daunting.
Have Back Up Plans
Failure will happen. To alleviate the anxiety behind it, have contingency plans in place that will help mitigate the situation and allow you to be more prepared.
Have a Growth Mindset
A growth mindset believes that skills and abilities are developed through continuous effort and learning. It allows you to view failures as a learning experience and grow from them, which creates resiliency.
Ask for Help
Successful individuals don’t learn from themselves. They learn from colleagues, mentors, and professionals in their industry. Create and foster relationships with people who will offer advice and encouragement and collaborate when needed to help you grow your skills and abilities.
Take Action
Taking action is the hardest step when you fear failure, but it is essential. Learn from mistakes and failures and utilize them to drive and develop new skills. Keep a record of your achievements to remind yourself you are capable of hard things.
Final Thoughts
Dealing with fear requires awareness of yourself and your projects, a level head, proactive planning and goal setting, quick reactiveness, and a supportive network. Remember that failure is part of the process, and following these recommendations will lead to a more resilient you and continued success.
Pumps with booster impellers improve the flow and pressure of water by increasing the pressure. Pumps with booster impellers have an inlet, outlet, motor, and pressure monitoring device inside. Through the inlet pipe, water passes through an impeller and is further pushed through an outlet by the impeller. This plays a vital role in building water pressure and enabling the faucet or showerhead to deliver high-pressure water.
It is the fast-growing world population that is driving the growth of the global commercial booster pump market. Increasing population density all over the world, including hills, planes, and deserts, is increasing the demand for a constant supply of water.
As a result of the growing demand for energy-efficient water pumps, the global commercial booster pump market is expected to grow and develop significantly throughout the forecast period.
It is the poor water supply facilities provided by local municipal corporations that further drive the global commercial booster pump market. The surge in water extraction from a single source and the emergence of technology are integrating highly advanced solutions into the market.
The global market is expected to grow during the forecast period due to increased industrialization and urbanization. The rapid industrialization of the world has created a need for advanced and multipurpose water pumps that offer intelligent pumping solutions, which has also created lucrative growth opportunities for the key players to penetrate the market and generate huge revenues.
Global Commercial Booster Pumps Market Historical Analysis (2017 to 2022) Vs. Forecast Outlook (2023 to 2033)
The world population has substantially increased in recent years. Many countries have been experiencing a population boom which has led to a drastic surge in demand for potable water and usable water. This has led to an increase in demand for commercial water booster pumps across multiple industrial and domestic applications.
From 2018 to 2022, commercial booster pump sales rose at a CAGR of 4.4% and generated a revenue total of US$ 5,270 million in 2022. An increasing population has also created a surge in agricultural activities and driven commercial irrigation booster pumps.
Rising urbanization, increasing population, growing demand for agricultural activities, increasing industrialization, rising water consumption, and rapid technological advancements are some prime factors that influence the commercial booster pump market potential.
Technological advancements while propelling the market are also expected to act as a restraining factor as well that could hinder commercial booster pump shipments over the forecast period. From 2023 to 2033, demand for commercial booster pumps is anticipated to rise at a high CAGR of 7.6%.
Short Term (2023 to 2026): An increase in market share by improving product offerings, expanding distribution channels, and increasing advertising and promotional activities may drive the market during the projected period.
Medium Term (2026 to 2029): During the mid-term period, the commercial booster pump market is likely to vary. Companies may aim to gain new customers such as manufacturing complexes, multi-story buildings, and high-rise facilities.
Long Term (2029 to 2033): In the long run, companies may aim to drive innovation by investing in research and development to create new products or improve existing ones. This could involve developing new materials, exploring new manufacturing techniques, or incorporating emerging technologies like IoT, AI, or data analytics.
How are Sales of Commercial Booster Pumps Expected to Perform in the United States?
Increasing Demand from Smart Cities to Boost United States Market Potential
High technological proliferation is anticipated to influence demand for commercial water booster pumps in the United States. The increasing trend of the establishment of smart cities is expected to propel the demand for commercial water booster pumps. Commercial booster pump companies in this nation are broadly focusing on launching new commercial booster pumps for water.
For instance, in April 2021, the Progressive Water Treatment division of The Water Company for the New Economy announced that it had started shipping its new commercial booster pump systems and equipment line. The new product line is called BroncBoost and enables customers to control water flow rates and pressures in water distribution systems and networks.
Recent Development
Commercial booster pump vendors are focusing on expanding their product portfolio by launching new products and expanding their revenue potential.
In February 2022, Shakti Pumps, a leading pump and motor manufacturer in India, announced the launch of its new commercial submersible pumps. The new plug-and-play submersible pumps are designed for higher efficiency and low operational costs and are expected to see good demand from the agriculture sector.
To expand its commercial direct service network, Pentair Inc (a leading provider of water treatment and sustainable solutions) in April 2021, announced the acquisition of the assets of Ken’s Beverages Inc.
Private equity firm AIP (American Industrial Partners) acquired Ingersoll Rand’s stake in its HPS business in February 2021 for around US$ 300 million.
