Globalization has led to some very significant changes in the economy. One of the biggest changes is the increased reliance on independent contractors. Companies have the opportunity to connect with talented workers all over the world, which is driving massive growth in the gig economy.
Recent data shows that there are roughly 20 million freelancers in the gig economy. As a growing number of companies look to independent contractors in the gig economy, they need to cope with challenges to their supply chain models. Here are some factors that need to be dealt with. This is something a supply chain recruitment consultancy can assist with.
The need for multi-regional distribution channels is greater
The gig economy has created a new workplace infrastructure. Employees used to be consolidated in a single location or a handful of locations. As companies turn more towards a decentralized workplace powered by independent contractors, they have to manage people scattered across many different parts of a country or even the world.
If those contractors need to work with physical materials, then it is necessary to find distributors that are available in all of their regions. Digital communications are more essential than ever with JIT systems in decentralized companies.
Just in time inventory (JIT) became a very popular concept in the 1970s. It is even more widely adopted today. However, it is more complicated to manage a JIT strategy with companies that have highly decentralized workplaces.
If employees around the world are contributing to production, then project managers need to put in a lot more effort to ensure efficiency and meet timetables. This requires exceptional transparency and highly efficient communications between staff. Companies need to invest in sophisticated digital technology and VoIP platforms to keep everybody in contact.
Artificial intelligence will play an even more important role in streamlining efficiency
Artificial intelligence is playing a very important role in many supply-chain models. Companies use AI technology for a variety of reasons, including:
- Predictive analytics tools can help organizations predict the likelihood of adverse weather patterns or other issues that could cause disruptions in deliveries along certain supply chain routes.
- Artificial intelligence can help organizations find the fastest and most cost-effective distribution routes.
- Machine learning technology helps organizations understand consumer trends, so they can ensure they have sufficient inventory to meet future demand.
AI technology is disrupting supply chain models in a very positive way. It’s going to be even more important as workplaces become more decentralized. They are going to need to coordinate with contractors scattered across many different regions. This means that they have to manage countless delivery routes, which would be nearly impossible without a dependable AI at their fingertips.
Geopolitical issues need to be taken into consideration
A number of factors can cause disruptions to supply chain models. The range of issues is smaller for companies working in tightly defined geographical regions. As companies expand into different regions, the number of complicating factors increases exponentially.
As companies start managing a multi-regional workforce, they need to be prepared for a slew of geopolitical issues. This can include new regulations on distribution, local taxes that may apply across every region that goods are traveled and the growing risk of national unrest in many parts of the world. All supply chain models need to account for these risks.
