The future is unpredictable. But regarding the supply chains in 2023, some predictions can be made by looking into the history and the circumstances we might face.
One could forecast the disturbances in supply chain operations in 2023 for multiple reasons, whether they already exist or because of new geo-political conflicts due to a rise in inflation, climate changes, or any other issue yet to come forth.
Other consequences can be increased prices and port congestion, resulting in the reduced availability of ocean/sea freight. Port congestions can disrupt the delivery timings leading to delayed shipment hence slower supply chains.
This blog details about the supply chain trends in 2023, and threats that company owners must look-out for. Keep reading to find out better ways to boost your supply chain management plan.
Supply Chain Trends In 2023:
The covid-19 pandemic has severely disrupted the global supply chain over two years, causing an instant change in demand and immense plant shutdowns.
In the post-covid era, a revolution in the ray of adaptation to uncertainty is critical, which means that to satisfy the customers on a grander scale and for saving costs, the merchant must come up with strategies, analyze the risks, and research the market.
Below are eight supply chain trends in 2023 for you to take care of and remain up-to-date with the industry.
Artificial Intelligence And Machine Learning:
The advancement in technological areas has provided a boost to the use of artificial intelligence(AI) and machine learning in many industries. Implementing AI in demand, product examination, and sales prediction is a crucial trend for supply chains in 2023 and the upcoming years.
Forecasting Using Data Analytics:
Data is vital for businesses to manage the supply chain strategically. Most companies track this essential information using spreadsheets. However, industries are working towards automatization, enabling less human involvement in management while still getting desired results.
Forecasting enables you to calculate the future, saving you from the risks. It is highly challenging because customers’ priority changes due to product shortage. Reliable software and artificial intelligence make the job a bit easy by suggesting products with less demand, products that are selling fast, and new product trends in the market.
Digital Supply Chain And The Internet Of Things(Iot):
IoT allows us to transfer data over the network without human involvement. The internet of things(IoT) is an interconnected network consisting of computers, digital and mechanical machines, objects, or people who have been given unique identifiers(UIDs).
Supply Chain Efficiency:
To make your business thrive during harsh situations, you must ensure your supply chain is competitive and capable of managing the unexpected appropriately and profitably.
Supply Chain Resilience:
The resiliency of a supply chain is anticipated by its ability to react to the unexpected circumstances it might face in the future, respond to those interruptions, and retrieve from them.
Customer Centricity:
Customer centricity is a strategy to put the customers’ interests first to better their experience and build long-term relationships. Nowadays, customers are more demanding due to the advancements and ease of switching to other brands. So retailers’ top priority is to provide the best service and value their feedback. Hence it’s safe to say that customer-centricity is the supply chain’s future.
Supply Chain Visibility And Sustainability:
Having an end-to-end view to manage products from initial shipment of goods to final distribution to the market and further to the customer, satiating customers’ needs and requests, increasing profit, defines supply chain visibility.
You must have a sustainable supply chain to maintain sustainability in your business. Therefore, for a sustainable supply chain, we must re-evaluate the transportation of goods to their initial location and where they are manufactured.
Data Security And Cybersecurity:
Cybersecurity has become unsettling for supply chain management. The infirmity of cybersecurity could result in severe damage like stealing customers’ data and its inappropriate use for financial gain.
Therefore, for supply chains in 2023, it’s safer for businesses to look into their digital supply chains and have a plan of action to deal with such situations.
Supply Chain Threats In 2023:
Experts have forecasted the following threats for supply chain managers to look-out for;
Container shipping bottlenecks:
Bottlenecks in ocean freight are thought to be persistent in 2023. Delays impact port capacity due to external challenges such as the pandemic resulting in grand congestion, alongside a decline of labor and unplanned shutdowns of ports due to overload.
The rise in inflation:
When prices go high in one sector, the supply chain has a domino effect as all the sectors are interconnected. The increasing inflation in the workforce, energy, and transportation costs is a significant risk factor to the existing supply chain.
Warehouse scarcity:
The two-year global pandemic has left the supply chain in crisis, including port congestion due to delivery delays, shortage of labor, and outdated infrastructure. The port congestion leads to the forced return of goods to the warehouse causing warehouses to be crammed.
Covid -19 comeback:
While everything is slowly returning to normal post-pandemic, covid-19 is still a significant threat. Any new, potentially more deadly variant can take us back to the covid era, including lockdowns and restrictions producing more disruptions to an already threatened supply chain.
Looking for Better Supply Chain Management in 2023?
If you are looking to have a more sustainable, resilient, and overall better-performing supply chain in 2023, here are some areas you must focus on:
- Shift In Labor Supply:
In further years, the labor supply might change significantly. The economy has been predicted to rise more quickly in emerging countries than industrialized ones. Hence laborers will shift to developing countries for work. Therefore, managers should keep this shift in labor in mind when developing global supply chain networks.
- All Data In One Place:
Having all your data on a single platform can help you save time and manage your supply chain without delays. Increased visibility will help you look into new trends and adjust your strategy following the entire value chain.
- Simplify The Supply Chain:
Making your supply chain less complex by collecting all of your vendors’ contracts into a single agreement that offers flexible terms.
- Forecast And Demand Planning:
Forecasting and demand planning prepare you for unexpected events and enable you to meet your customers’ expectations.
- Predictive Analysis:
Anticipating the customers’ demand by judging their past sales patterns and identifying trends, understanding the effect of economic and weather conditions on customers’ market can be done by using predictive analytics.
That is all about supply chains in 2023, the trends, the threats, and factors that supply chain management would largely depend upon in 2023.
