2022 disrupted supply chains like never before, causing unprecedented inflation and delays.
What will happen in 2023?
In our opinion, there are several trends in supply chain management that are worth paying attention to:
- Continued supply shortages: The pending recession, port congestion, and geo-political instability will continue to affect supply chains. Businesses will need to be agile and adaptable in order to manage these challenges proactively.
- Sustainability concerns: Especially with the 2023 focus on ESG Compliance, there is growing pressure on businesses to reduce their environmental impact, and this is likely to extend to supply chain management as well. Companies may focus on initiatives such as reducing carbon emissions, using eco-friendly materials, and implementing sustainable practices throughout their supply chain. For example, fewer empty vans, or eliminating multiple delivery trips to the same address on the same day.
- Increased use of technology: As technology continues to advance, it is likely that supply chain management will become increasingly reliant on tools such as artificial intelligence, machine learning, and the Internet of Things. These technologies can help businesses optimize their operations, reduce costs, and improve efficiency. But now is the time to examine the limitations of legacy or paper-based legacy systems that do not easily integrate with these tools, such as ERP inventory fulfillment systems.
- Cost increases: The global economic downturn and shifting consumer demands have led to increased pressure on businesses to reduce costs. It is likely that businesses will face increased costs in the coming years, such as rising wages, fuel prices, shipping, and transportation costs – along with expenses and barriers to entering new markets like Direct-to-Consumer (DTC). Having a supply chain management technology that enables expansion at a lower cost per order will be key to positioning businesses for long-term growth.
- Labor challenges: The labor shortages and challenges of 2022 have highlighted the importance of tighter performance tracking and technology that enables the workforce to quickly learn and use technologies that help them fulfill more orders and make optimal on-floor decisions. In the coming years, businesses may face challenges such as a shortage of skilled labor and the need to adapt to new work models. Modern warehouse management systems and fast-onboarding will be crucial.
Overall, the trends in supply chain management in 2023 are likely to create a divide between the technologically prepared and those still operating in the figurative dark ages, as well as by broader factors such as economic uncertainties and sustainability concerns.
In order to effectively navigate these challenges, businesses will need to be agile, adaptable, and proactive in their approach to supply chain management.
Companies that will do well in 2023 and beyond will use a modern warehouse management system from companies like Deposco.