New year, new trends. It is expected that the supply chain will continue to face disruptions as we move into the new year: one in three business decision-makers estimated that until the end of summer of 2023, supply chain issues will still remain persistent throughout the world. This means supply chain managers must prepare for conditions to get worse before they get better. To prepare for the unexpected, global challenges require supply chain leaders to be agile and adapt to changing environments.
Here are three trends supply chains must consider in their operations as we move toward 2023:
Supply Chain Visibility
Digitalization will continue to rule as we move into 2023, and supply chain visibility will be more widely used by supply chain professionals worldwide to gain insight. Supply Chain Quarterly noted that nearly 60% of supply chains said they’ve seen a decrease in revenue since the eruption of the pandemic, mainly due to a lack of visibility in their supply chain operations. However, 74% of business managers in the supply chain explain they will adopt new technology to overcome challenges. AI will augment many of the jobs in the supply chain industry which in turn will help with the automation of inventory management, predicting, and forecasting. It was found that only 6% of companies report full visibility on their supply chain, while 43% of small businesses don’t track their inventory. Businesses are finding success with augmented analytics and AI, which provide instant supply chain visibility through control towers and other proactive measures.
Sustainability & Cost Cutting
F W Global Solutions explains that “Businesses will continue to search for and adopt sustainable efforts, from sourcing sustainable raw materials to evaluating greenhouse gas emissions in transportation”. In some cases, circular supply chains are coming into play as businesses resell revamped discarded supply chain contents and sell them back to consumers. Studies show that 58% of business leaders will find new environmentally friendly supply chain solutions.
One big way that businesses have cut costs and promoted sustainability is through proactive analytics. Businesses are able to stay on top of fluctuating supply chains and consumer demand by receiving proactive insights through automation and AI, spurring action at a moment’s notice; whether it be through changing prices or moving inventory, proactive analytics provide the best means for cost cutting.
Controlling Surpluses & Optimizing Inventory
In 2020, supply chains were unprepared for the mass need for products and supplies fell short for weeks or even months. In order to avoid stockouts or oversupplies in 2023, supply chain managers are encouraged to take a middle-of-the-road approach, avoiding having too little and too much in terms of inventory. With the addition of AI, real-time data sharing will benefit supply chain managers, overcoming a lack of visibility in their supply chains. When $163 billion worth of inventory is wasted each year, saving supply chains both time and money is the name of the game.
As we move towards the new year, businesses should keep these trends on their radar in order to successfully maneuver through any challenges that lie ahead. A critical outcome of the supply chain is to efficiently deliver an accurate amount of products at the right time to the right people. This can be achieved through supply chain data sharing and clarity throughout the entire supply chain.
To get a jumpstart on supply chain visibility, sustainability, and inventory, schedule a demo today!