Did you know that just under 33 percent of small businesses experienced supply chain disruption on some level in the United States of America in 2022? Businesses across the country are facing supply chain challenges, and they’re preventing them from offering the same level of goods and services as they’re used to.
The COVID-19 pandemic had a major impact on the global supply chain, so it’s important as a business owner to monitor the changes that are happening with your supply chain as you enter 2023. The good news is that you’ve found the perfect guide to learning all about the biggest supply chain trends to keep an eye on as you move into the new year.
Keep reading to learn more today!
Rising Costs
A big trend that you need to know about when it comes to supply chain management is the rising costs associated with your supply chain. Inflation is beginning to impact economies around the globe, and that will start to impact your supply chain and your business operations as a whole.
Rising fuel prices are a big reason why you’ll need to pay more for resources and goods that your business needs. You need to move forward with the expectation that your supply chain expenses will continue rising.
Focus On Sustainability
More businesses are making sustainability a priority. This makes a lot of sense, as consumers want to work with businesses that use sustainable products. The supply chain is one of the biggest areas where you can make a difference.
There are a number of things that you can do to make sustainability work for you within your global supply chain. You can look into using more sustainable packaging options when shipping goods to your customers. It’s also a good idea to look at using a logistics company that uses vehicles that run on alternative energy sources.
Many logistics companies are switching to hydrogen-powered and electric vehicles. You can do your part to combat climate change by working with companies like that while overcoming your supply chain challenges.
Automation
The elephant in the room when it comes to technology is automation. Automation is becoming increasingly popular across a number of industries. The more automation that you use, the less common errors become.
Your business will end up saving money in the long haul if you make use of automation within your supply chain. Expect to see many businesses resort to machine learning within the supply chain as a way to make things more efficient. It’s a great way to make up for the talent shortage in supply chain.
You can make great use of automation within your warehouses since inventory management is a breeze for artificial intelligence. It’s also a great solution for finding the best routes for shipping, as well as tracking your goods through each step from leaving your warehouse to delivery.
Internet of Things
The Internet of Things is a huge trend that is developing within the supply chain industry. It’s estimated that there will be more than 25 billion devices connected to the Internet of Things by the year 2030. This wireless network is changing the ways in which businesses operate.
It’s expected that the Internet of Things will get put to use within warehouses in the near future. The ramifications of this move will impact the goods and resources that enter and leave your warehouse. As the devices connected to this network track these items, they will forecast which items you’ll need and how many so that you don’t have to.
Greater Visibility
Though you’re sure to encounter many supply chain challenges in 2023, one great thing you can expect is more visibility of shipments as they move through the supply chain. The entire global supply chain benefits when customers can see the order go from the manufacturer to their doorstep.
The added visibility also shows the customer or the business the areas in which things can improve. Everyone has access to the same data over the course of the shipment. It makes for much greater accountability and more efficient operations.
Worker Shortages
The adoption of artificial intelligence can help negate the lack of qualified workers to a point, but you still need talented individuals to work in order to avoid a major supply chain disruption. The trucking industry is a great example of one of the weak points within the supply chain.
Many trucking companies are struggling to find people who are willing to work as truck drivers. The same issue impacts warehouses and manufacturing plants across the country. It’s difficult to get the true measure of how your supply chain will work until after the supply chain trends settle.
Cyber Threats
You also need to consider the threat of cyber-attacks when it comes to the supply chain challenges that you’ll face. Cyber-crimes are on the rise, and businesses are an easy target. This is a trend that should worry any business or supply chain that makes consistent use of the Internet of Things.
Cyberattacks on supply chains can have some serious consequences that cost your business a ton of money. A big trend for 2023 is an emphasis on protecting the global supply chain from hackers. Expect to see more logistics companies investing in software and IT help. This will prevent these attacks from happening going forward.
The new technologies that are available are great. Supply chain managers need to invest in the right skills and software programs to keep these technologies safe. You’ll only run into more supply chain disruptions if the cyber threats aren’t properly addressed.
Start Preparing for These Supply Chain Challenges Today
Running a business that is dependent on the global supply chain is intimidating, especially after the supply chain disruption caused by the COVID-19 pandemic. Look for more logistics companies to make use of AI and the Internet of Things. It’s also important to brace yourself for cyber threats within your supply chain.
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