Managing volatility in logistics markets

Fluctuations between supply and demand always influence logistics markets. The same applies to disruptions in supply chains during singular events such as (natural) disasters, terrorism, and social or political upheavals. 

However, we have experienced a new dimension of volatility during the last two years. Almost every economic sector is affected by more frequent supply bottlenecks, interruptions, or the collapse of supply networks. Anyone who attributes this solely to the COVID-19 crisis is missing the point. The causes are as complex as the approaches to mitigation and defense. 

Various studies have long documented the need for resilient supply chains and adaptive risk management. In Gartner's Hype Cycle for Supply Chain Strategy 2021, the latter was put in the trough of disillusionment. A clear signal that the real pro-gress in managing volatility has not kept pace with expec-tations. In reality, we underestimate the scope and chal-lenges of the transformation.