[Supply Chain Central] Is your business ready for FY23?
The year 2023 has arrived, and with it, a new era of supply chain management trends. Businesses must be ready to adapt to these changes to remain competitive in the global market.
As we continue to recover from the pandemic, the supply chain has become even more critical, and many organizations are investing time and resources in supply chain management to mitigate the disruptions of early 2022.
Notably, a recent McKinsey report highlights that 67%(1) of respondents have adopted digital tools for end-to-end supply chain visibility.
This article discusses some key supply chain management trends to watch for in 2023.
Digital Revolution of Supply Chains: The Future is Now
The shift toward digitization may be the most significant trend in supply chain management in 2023. As the world becomes more connected, companies will embrace digitization on a large scale to stay ahead of the competition.
Digitization of supply chains requires implementing the internet of things (IoT), cloud-based networks, artificial intelligence, and machine learning. These digital tools help businesses to track, monitor and analyze every aspect of the supply chain management process.
By adopting these tools, companies can streamline their supply chains, develop new revenue streams, and tap into new markets.
Green is the New Gold: Prioritizing Sustainable Supply Chains
With the rising global emphasis on environmental sustainability, businesses will prioritize sustainable supply chains. Investors, including private equity firms and venture capitalists, are increasingly opting for sustainable organizations in their portfolios.
Thus, companies will look to demonstrate a commitment to sustainability to gain a competitive edge in funding and attracting investors.
To achieve sustainable supply chain operations, businesses will adopt green logistics practices that are environment-friendly. This can include investing in energy-efficient technologies and utilizing sustainable packaging materials.
Environment, Social, and Governance (ESG) focused procurement decisions will also gain momentum for implementing sustainable supply chain management processes.
Don’t Fall Behind: How Partnerships are Changing the Supply Chain Landscape
Don’t miss out on the opportunity to stay ahead of the competition by harnessing the power of supply chain integrations. The year 2023 is expected to witness a proliferation of supply chain components due to many companies pursuing cost reduction and enhanced customer service.
As a result, companies that fail to integrate with third-party service providers risk falling behind.
In 2023, integration with third-party service providers will become common for reducing overall freight expenses and optimizing the supply chain.
Moreover, companies will seek partnerships with other enterprises that leverage digital solutions to improve delivery estimation accuracy and minimize administrative work. This would further enhance the overall efficiency of supply chain management.
Future-proofing Your Supply Chain: Building Risk and Resilience
In today’s complex and unpredictable business environment, managing supply chain risks and building resilience has become a critical priority for companies. These risks can emerge in various forms, from natural disasters that disrupt the flow of goods to cyber-attacks that jeopardize sensitive data.
To address these risks, companies will embrace an array of strategies including the following:
- Supplier diversification– Companies will adopt strategies to mitigate the risks of overreliance on a single supplier. Supplier diversification will become a key priority as companies seek to avoid the impact of supply chain disruptions.
- Localizing production and transportation– Businesses will seek to reduce the distance between the manufacturing plant and end customers and transport goods through local channels, such as short-haul trucking or rail transport.
- Forging non-traditional partnerships– Companies will seek to expand their network of partners to tap into new sources of innovation, secure access to specialized talent, and access new markets.
A robust supply chain design will be adopted to enable quick recovery from adverse events, provide superior customer service, and increase the market share.
Big Data, Big Benefits: Leveraging Big Data and Analytics
Big data and advanced analytics will power the future of the global supply chain. The ability to collect and analyze vast amounts of data will provide greater visibility, synchronized planning and execution, data-driven decision-making, and profitability.
By leveraging these technologies, companies can optimize their supply chains, improve delivery times, and enhance the overall customer experience by identifying patterns and trends. Implementing algorithms and robotics will further drive efficiency and productivity, making big data and analytics the cornerstone of future-proof supply chain operations.
Cybersecurity for the Win: Protecting Your Supply Chain from Modern Threats
As businesses continue to expand their digital footprint, the threat of cybercrime becomes more prevalent. The supply chain, in particular, is increasingly vulnerable to attacks from cybercriminals seeking to gain access to sensitive data.
To safeguard against these threats, companies are adopting a proactive approach to cybersecurity. This includes investing in anti-hacking systems, implementing firewalls, providing employee training, and building stronger relationships with supply chain partners.
Through collaboration and coordinated efforts, businesses are protecting their assets and people from cyber threats, ensuring the resilience of their supply chains.
Reshaping the Map: The Rise of Domestic Self-Sufficiency
Geopolitical tensions have promoted domestic self-sufficiency in material supply and manufacturing.
As nations grow more skeptical of cooperation and interdependence, governments seek to secure the supply chain. They’re exploring domestic production capabilities and ‘friend-shoring’ relationships with like-minded and geographically proximate countries.
This approach provides a more secure supply of goods and mitigates the risk of material unavailability or supply chain disruption due to geopolitical tensions. Thus companies may have to restructure their supply chains in 2023.
Capitalizing on Supply Chain Management Trends 2023
The trends in supply change management in 2023 will transform how businesses operate. At Moglix, we are well-equipped to help companies to navigate these changes, capitalize on opportunities and stay ahead of the curve.
We understand the challenges businesses may face as they seek to adapt to these changes in the supply chain landscape. Contact us to learn more about how we can help your business optimize its supply chain management strategy.