Emily Newton is a technology and industrial journalist. She is also the Editor in Chief of Revolutionized.

2022 is likely to be another challenging year for logistics, fulfillment and business professionals of all kinds. Ongoing shortages, supply chain disruptions and changing consumer preferences will impact businesses’ ability to fulfill orders.

Fulfillment is as important to businesses now as it has ever been. Customers continue to expect quick order turnarounds and stock availability, meaning companies without inventory ready to ship may struggle.

Here’s what every business owner should know about fulfillment in 2022 — and how it may change over the year.

1. Supply Shortages and Excess Stock

Some shortages that emerged in 2020 and 2021 are on track to end this year. However, things are likely to become worse before they get better.

Lead times for semiconductors, an important component for all electronics, grew again in December 2021 after decreasing earlier in the year — a sign that the shortage is likely to drag on. They’re on track to continue rising in the near future.

Still, experts believe semiconductor supply will begin to meet demand sometime this year — helping reduce lead times and ensure electronics manufacturers can return to business as usual.

This is good news for companies that sell or ship electronics — with one major caveat. The beginning of the year is likely to be tough, though conditions will improve as the semiconductor industry and related sectors continue to recover and adapt.

At the same time, we’re starting to see the long-term impact of the pandemic on business stockpiles and warehousing strategies. Many large retailers and manufacturers are stocking up, holding onto goods or raw materials.

These businesses aren’t abandoning lean practices or a just-in-time approach to order fulfillment. However, they are attempting to create additional slack in the system to prepare for future supply shocks and supply chain disruptions.

2. New E-Commerce Fulfillment Models

Fulfillment models that emerged or became popular during the pandemic — like grocery delivery and curbside pickup options — are likely to remain popular in 2022.

Branded packages and packaging is becoming more popular. The same goes for direct-to-consumer (D2C) models from legacy brands that have typically relied on retailers or other intermediaries for fulfillment.

The growing popularity of e-commerce has made it more practical than ever to market directly to consumers, no matter a business’s niche or target audience. Instead of working with retailers, many are instead aiming to maximize quality order satisfaction by investing in the services of fulfillment companies.

These companies handle shipping, packaging and related order fulfillment tasks for companies that are pivoting to D2C business models. Many also offer support for reverse logistics operations, which will become increasingly important as D2C operations begin to handle returns and replacements directly.

D2C Fulfillment Requires New Approaches to Packaging and Branding

Having a direct relationship with customers also makes branding more essential — especially that which takes advantage of a business’s packaging. Newly D2C companies may have had less control over this in the past.

Packaging is sometimes an underexploited branding opportunity. More businesses are starting to take advantage of their boxes' advertising space by creating packages with branded visuals, shipping labels, personalization and thank-you notes.

These branding elements can make receiving a package a more exciting experience for consumers and build a stronger relationship between online businesses and their consumer base.

As these companies interact more directly with shoppers, they’re also increasingly sensitive to changing customer desires and preferences. For example, the major shift toward advertising sustainability that began in the late 2010s will likely continue in 2022.

More customers than ever want sustainable goods and brands, especially younger customers like millennials or Gen Zers. Recent market research suggests that a significant portion of these people are also willing to pay more when shopping with eco-friendly brands.

As a result, many businesses are prioritizing sustainability in manufacturing, sales and marketing practices. Supply chain management programs that help companies increase sustainability or transparency are also becoming more popular.

Green e-commerce and fulfillment are likely to grow even more important throughout the year and into the near future as customers demand eco-friendly products.

3. Supply Chain Disruptions and Shipping Delays

In 2022, ports are congested and trucking companies continue to face major labor shortages around the country. In general, moving goods is more expensive and much slower than in the past. Experts believe the supply chain delays that emerged in 2020 and 2021 are likely to stick around this year.

These disruptions may ease toward the middle and end of the year. However, businesses should be prepared for shipping delays through the end of the second quarter.

Experts also believed last year that significant improvements to the overall supply chain would have come by New Year’s Day. The current crisis may be serious enough that it won’t resolve until after the end of 2022.

Many businesses are preparing for ongoing supply chain disruptions to become part of the new normal — at least until some time after the pandemic is over.

If consumer demand remains unusually high through 2022, many supply chain companies may struggle to resolve ongoing issues. Businesses may focus their resources on getting goods to customers rather than clearing the supply chain backlog.

According to the Financial Times, demand for container shipping tends to rise in the "weeks before the Chinese New Year — in early February in 2022.

If there will be a drop in consumer demand this year, we’ll see it around this time. A clearing of the backlog could come soon after, paving the way for more reliable supply chain and fulfillment operations in the rest of 2022.

Here’s How Businesses Should Expect Fulfillment to Change in 2022

Fulfillment in 2022 will likely be challenging for businesses of all kinds — though changing consumer preferences and new fulfillment models may create opportunities for some.

Supply chain disruptions and shortages of essential goods will likely continue well into 2022 and potentially beyond. Experts believe we may begin to see the supply chain resolve large order backlogs in the late first quarter, depending on consumer demand.

Business owners should be ready for supply chain disruptions and willing to take advantage of emerging trends like branded packaging and sustainable fulfillment.