Supply chain operations have been the same for a very long period. The lack of change and innovation in the field has made supply chains prone to failures and vulnerabilities. These vulnerabilities in the supply chain were severely exposed during the pandemic. 

Although the shipping industry was able to make it through the pandemic with these vulnerabilities, if these flaws are not rectified, the entire operation can collapse, halting the global supply chain. 

As we walk into 2023, we will witness significant changes in the global supply chain ecosystem and see new and improved methods being used in the business. 

As firms strive for greater efficiency and sustainability, new technologies and strategies for transforming supply chains emerge. Predictive and prescriptive tools, blockchain technology, machine learning, and Industry 4.0 are all expected to change how firms handle their supply chains in the near future.

This will allow firms to make better decisions, cut costs, and adapt quickly to changing market situations.

Today we will discuss some of the significant changes that will happen in the year 2023 and the years that follow.

Supply Chain Automation

Businesses may benefit from automated systems by cutting costs, simplifying operations, boosting efficiency, enhancing supply chain visibility, and allowing decision-making. Companies must invest in cutting-edge technology such as AI/ML, robotics, and IoT (Internet of Things) to compete. 

A recent Gartner research found that 61% of respondents feel technology gives a competitive advantage. Many people see new technology as an important area for investment, with 20% investing in robotics. This would be one of many supply chain changes after 2023.

Integration of BlockChain in Data Handling

Blockchain’s distributed ledger technology has enormous potential to alter the supply chain industry. Using blockchain technology, firms may securely store and disseminate data across their network. Enterprises may use smart contracts to automate procedures and ensure all parties adhere to the set rules. Blockchain enables businesses to track and trace things across their supply chain, guaranteeing only legitimate items are delivered to customers.

Sustainability of Supply Chain

Today, as more businesses attempt to reduce their carbon footprint, sustainability is a top focus in the supply chain industry. Companies must strive to build sustainable practices that minimize their environmental impact by employing eco-friendly plastic packaging, supply chain management, renewable energy solutions, and resources such as carbon footprint calculators.

This will ensure that supply chains remain flexible and sustainable, even under quickly changing market situations, and will assist firms in remaining competitive in a more environmentally concerned world. According to a Gartner survey, 84% of supply chain leaders anticipate investing in climate adaptation and mitigation strategies over the next 18 months.

Managing Risks and Adaptability

Risk minimization is becoming increasingly important in the supply chain industry. Today’s organizations attempt to identify and manage potential risks before they become big crises, arming themselves with resilient ways to deal with unanticipated changes and disruptions. 

To do this, organizations must install solutions that allow them to recognize and respond to potential risks quickly, deploy data analysis systems that detect potential hazards before they arise, and continually change their plans and activities to changing conditions.

Planning in Collaboration

Companies must be able to collaborate with their suppliers and partners to quickly develop focused strategies that allow their operations to run successfully. Collaborative planning is critical for uniting divergent teams and allowing them to work toward a cohesive corporate goal that considers all stakeholders’ desires and objectives. 

Businesses should focus on developing collaborative relationships next year by embracing digital technologies such as cloud-based technologies and predictive analytics to manage their supply chains better.

IoT For Monitoring

IoT tracking is becoming increasingly important in the supply chain industry. Using IoT-enabled devices, businesses can quickly and accurately track the flow of their products across the supply chain. This will assist in ensuring operational systems remain effective and adaptable in the face of changing market conditions.

Most businesses have learned in recent years that their supply chain and logistics strategies must be revised since they have failed to succeed. By cooperating with the critical global macro trends, they must scale their efforts to stand out, function more effectively, and improve services in 2023.

This will enable them to drive fundamental change and development in the sector and enhance logistics and supply chain performance and resilience in the years ahead.

Conclusion

These are some supply chain changes after 2023 and the years that follow. Logistics companies must adapt to these changes to earn more profit and become sustainable.

A digital supply chain’s foundation is built on web-enabled proficiencies. A lot of IT companies use a combination of paper-based and IT-enabled processes. However, a genuine digital supply chain is more than just this mixed model for the capitalization of connectivity. It is an integrated system that has the capability to produce smart components.

The main aim of the digital supply chain is to allow insights for better efficiencies and facilitate better profits. In addition to the sustainability of waste. Companies that work through a digital supply chain have better resources, assets, and people. Moreover, their inventory is better because they can cater to needs at any time. It also reduces the overall expenses because they respond to manufacturing and transportation risks proactively. Furthermore, when a company is hundred percent digital, they can save in every area, for example, resources, time, expenses, and environmental footprint.

The process of a digital supply chain is such that it monitors the inventory levels, interaction of customers, carrier locations, and equipment in real-time. Furthermore, they use this information to plan and execute a high-level performance. 

The following play a vital role in the digital supply chain

1. GPS tracking
2. Radiofrequency identification
3. Wireless sensor networks
4. Location-based data

The integration of cloud technologies with Web services unifies the information and processes. It creates more efficient collaboration and trading partner capabilities.

Building a digital supply chain isn’t easy. It requires properly planned strategies and organizational skills. Not putting in enough effort can lead to data duplication and inefficiencies.

Traditional Supply Chain vs Digital Supply Chain

Traditional supply chains work on the strategy of planning and reacting, whereas digital supply chains predict and prescribe actions.

Traditional supply chains work on rules that are historical, which makes them tremendously static. However, the digital supply chain functions in real time; it can adapt to changing circumstances. The difference between the two is vast. The former is linear, and the latter is based on networking.

Supply chain digitization relies on information technology and operational technology. Moreover, the system is also integrated, balancing profits and service levels. The traditional supply chain depends entirely on standalone systems.

Supply chains can encounter problems and unwanted effects, which can be a lot of work if traditional. The majority of companies need to perform regular resilience assessments and list the solutions manually. But, for the digital supply chain, the quality control data is shared. It can allow the companies to resolve the issues right away without the requirement of preplanning.

Conclusion

It is very beneficial for companies to incorporate digital supply chain management into their business. The technology will open doors to tremendous opportunities, evolving the world of digital supply chains.

However, a lot of the companies are still working on traditional aspects and switching to digital can take some time. But it isn’t wishful thinking for companies to become technologically pro in the future. Moreover, these digital technologies will be around for some time, so companies can evolve based on their convenience.

In addition, it is important to understand that the skill set needed for Digital Supply Chain is different in contrast to the traditional methods.

Having a stable job and job security when the economy is in bad shape is a blessing, especially one that is rewarding, both financially and in praise. In such situations, it may seem like it isn’t necessary to worry about whether your employees are happy. However, if you want your employees to perform sustainably, know that happy employees produce more than unhappy ones. They love their job; hence their chances of quitting are less, and they influence others to be committed to their job, too. Corporate sustainability does not only represent initiatives that require finances, time, and human capacity. Nor does it only create a sustainable strategy, but, it impacts measures and leads towards innovations. 

Large or small, every company makes a difference, which starts from one step. Here are some pointers to emphasize that can help in overcoming low sustainability.

Create a Sustainable Team

If you are unable to create a sustainable department, create a sustainability team. It will enable more minds to focus on and tackle problems. Moreover, come up with solutions that are innovative for the company.

A good sustainability team creates a stronger and more sustainable identity for the company. It is possible that the people in your company would want to make a positive impact, so ask them if they are interested in creating a sustainable team.

Other than that, you should also make sure that the people in your team are from different departments and can meet up monthly. A sustainability team can engage the employees, create awareness, and increase the overall performance of the company.

Paperless Business Cards

100 million cards are printed every year across the globe. Out of these millions of cards, more than 80 percent are thrown away. Using digital cards can combat this problem. Moreover, there are many other alternatives in the market that can be investigated as well.

Sustainable Competence and Knowledge

Sustainability covers every aspect of a business, for example, energy consumption and gain. It is important that employees know what sustainability is to create a system that integrates it. Most sustainability initiatives require expertise and knowledge, such as knowing how to talk to employees and eco-friendly tools for product evaluation.

Eliminate All Personal Office Bins 

Most of the things that are thrown away can be recycled and waste can be reduced. According to the stats, when office bins are removed from under the employee’s desks, the amount of waste is recycled significantly.

It is human nature to use what is convenient. So, when an employee has a waste bin under his desk, he will never walk to the recycle bin. One great example is Curaprox, which is a Swiss company that took the initiative of offices without bins. The amount of waste decreased by fifty percent after this initiative. In addition, general waste decreased by seventy-five percent and sorted waste increased by twenty-five percent.

Productivity and Purpose

Our aim should be towards sustainability because that is better in every way. A company should have a strategic and meaningful approach. They should be able to tie their purpose to their values. 

Russia’s untimely invasion of Ukraine has created a potentially dangerous and turbulent situation for logistics. These disruptive circumstances are not only limited to the affected area but are also directly impacting other areas beyond the war zone’s boundaries, urging the nations to work on supply chain risk mitigation strategies.

Russian invasion into Ukraine is affecting the logistics sector primarily and creating havoc for the global logistics industry. The logistics industry is currently facing significant risks which include transportation modes such as air, rail, road, and marine freight and fuel services risks.

However, targeted strategies have been planned to cope up with the logistics disruptions and overcome the potential risks as mentioned above. Some of the sanctions implemented on Ukraine by Russia are making the situation only worse with each passing day. Logistics industry always is at the dying edge of the boat in such war circumstances. National leaders group themselves on a round table and develop different coping strategies in such situations; however, risk mitigation is the only strategy that really counts. Some potential risks are discussed below that can rip off various aspects of the global logistics industry.

Air Freight Risk:

Air freight risk will eventually result in increased cost and limited capacity. It will create no-fly areas due to which flight house will be increased, and so will the operating cost. The impact and likelihood of air freight risk is exceptionally high; therefore, an adequate mitigation strategy must be created to combat any large disruption.

Mitigation strategies for air freight risk:

• Extend the pricing contracts For the next seven to eight months.
• Implementation of index-based price managements should be made on immediate notice.
• Take core partners in confidence and work closely with them to mitigate the increased cost.
• Remove capacity if not needed in air transport.

Rail Freight Risk:

Rail freight services between Europe and Asia will face disruption. Pan-European rail freight services will also face considerable transportation disruption. The European continental rail network will also be disrupted in the areas outside Russian territory. The impact and likelihood of rail freight disruption will range from high to low.

Mitigation strategies for rail freight risk:

• Shift modes of transportation to air and water freight services.
• Utilize the rail linking rail between northern Kazakhstan and southern Turkey.
• Try using shorter routes for transportation.

Road Freight Risk: 

The disruptions and affected areas of road freight will almost be the same as rail freight. Road freight disruptions will be seen in Eastern Europe and Pan-European territory. Due to the potential risk, routes will be shifted to alternate areas, eventually increasing the transit hours. Similarly, the areas outside the Russian region will be affected equally. The impact and likelihood of road freight disruption will range from low to high.

Mitigation strategies for road freight risk:

• Work closely with affected road carriers.
• Understand and learn the changes in routes and services. 
• Find out whether your carrier of choice will apply a surcharge.

Conclusion: 

Logistics professionals should not lose their hopes but must prepare themselves for the worst as well. Some of the immediate actions mentioned below should be taken to combat disruption risks.

• Plan alternates for every sort of logistic risk.
• Prepare for the unexpected and the worse.
• Analyze risk assessments and implement strategies on logistics networks.
• Reduce the risk exposure and constrain the surface area.
• Enhance the transport planning route time.
• Re-evaluate network resilience and capacity.
• Prepare alternate sources of supply and transportation.
• Create emergency funding for incremental costs of increased fuel charges.

A supply chain can vary significantly from one another. A company that manufactures electronic devices has a different supply chain than one that manufactures sports goods. So, the definition of what is supply chain security can not be explained under one set of rules and recommendations. 

In general, supply chain security involves protecting a supply chain against any physical threats or risks. It also considers the regulations set by local and international governments for the integrity of supply chains.

We noticed that many companies showed little to no interest in cybersecurity in the past. Companies did all in their might to protect their supply chains from physical threats, such as sabotage, theft, and terrorism. Factories would be visited by independent auditors, regulators, and corporations who do background checks on employees. Cargo would be documented, secured, and examined before and after shipping to prevent fraud or theft.

Physical attacks are still avoided by tracing shipments and rechecking regulatory documents. Vendors are also told to obtain shipments specified by quality criteria, and a company may employ multiple vendors to ensure a nondisturbed supply of commodities.

What Are We Neglecting?

While we don’t discourage anyone from paying much heed to physical supply chain security, we do not encourage them to focus on physical security alone. The recent supply chain attacks in covid-19 are an excellent example of the need for excellent cyberdefense in today’s world. Just as the cyber pandemic began spreading in 2020, the global supply chain started feeling the strain, which will continue into 2022. Millions of people started to use internet shopping as their primary, if not sole, method of acquiring items, resulting in a surge in transportation demand.

The computer components supply chain is an excellent example of this. The computer chip deficit is one of the worst situations in the present supply chain problem due to work-at-home situations, internet games and entertainment, and public demand.

The market forces for specific components were never higher for both manufacturers and buyers. Computer lovers are now enrolling in year-long waiting lists for graphics chips, while automakers report losses in millions owing to chip scarcity. 

5 Ways How You Can Ensure Better Cybersecurity

Risk Assessment:

It’s critical to understand where your new suppliers stand on cybersecurity before entering into supplier partnerships. What kind of safeguards do you and they have in place? What procedures and policies are in place to maintain data security? You want to know that sensitive client information will be kept safe in any data you share with your suppliers. You should secure all your partners, but those who play a critical role in your supply chain will be at higher risk and require greater caution.

Train Your Staff:

The most common cause of cyber attacks is still human error. As a result, it’s one of the most critical issues to address. While you should constantly strive to create a cyber security-aware culture inside your organization, this practice should also be supported throughout the supply chain. A good method to do so is sharing resources with vendors to educate their personnel about cyber threats.

Take Necessary Security Steps:

A supplier policy can effectively encourage an open relationship with your suppliers and set clear expectations between you. You can devote parts to cybersecurity and data protection in such a document, laying out what level of security your vendors should be able to demonstrate. Asking your suppliers to align themselves with an existing set of cybersecurity standards and certifications is one of the simplest ways to do this.

Be Cautious:

Small firms must evaluate the security of their suppliers and maintain a high level of cybersecurity to persuade more significant partners that they are not a security concern. Many firms, particularly in the public sector, are now demanding their suppliers meet specific security criteria before gaining contracts with them.

Transfer Data Safely:

Data must be transferred through secure channels and kept secure at all times in the supply chain. Because hackers are most likely to intercept data as it moves from one location to another, maintaining adequate security during this process is critical. Encrypting data before it is transferred is an excellent approach to reduce this risk.

Companies should also ensure that they have a thorough picture of the various types of data in their supply chain and where it all resides. Internal data (together with backup systems) and data that your suppliers have access to are included.

Conclusion:

Managing cyber threats in the supply chain doesn’t have to be difficult, but it is critical to accept responsibility for your own risk and adhere to standardized cybersecurity standards. Understanding all partners’ security processes, rules, and solutions is in everyone’s best interest. These actions lower risk throughout the supply chain and show clients, partners, and stakeholders that their secrets are secure with you.