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Supply Chain Trends 2023: What to Expect and How to Prepare for Them

Posted by [email protected] on Jan. 9, 2023  /  Subscribe 0

As you probably know, 2022 has been substantially marred by supply chain issues. The question is: will 2023 bring more of the same? More specifically: what is expected to happen with the supply chain in 2023?

We're going to go into that below, providing you with the top supply chain trends 2023 will likely bring us.

Environmental Friendliness

One of the biggest points of contention when it comes to the supply chain is the effect that it has on the environment. The excess use of fossil fuels in transportation releases substantial amounts of carbon into the atmosphere, subsequently contributing to climate change.

Because of this and pressure from external organizations, more logistics companies are prioritizing the reduction of their carbon footprint.

For instance, more warehouses are using energy management systems to gauge electricity, gas, and water usage. This way, they're only using what they really need.

There's also been a greater emphasis on using electric-powered vehicles. These are often powered with solar panels to reduce strain on the grid. Expect to see more of this popping up over the coming year.

Circular Supply Chains

For centuries, linear supply chains have been at the forefront of logistics. Resources are gathered and then shipped through several channels until they finally arrive in the hands of the retailer as a finished product.

The issue with this is that, when resources are hard to come by, it leaves manufacturers in a bind. They can't get their hands on the materials needed to create their products, and, as a result, they lose money.

How do they plan on getting around this? By taking defective products they once discarded and breaking them down into their component parts so they can be used for other purposes. This way, they'll have greater resource availability and won't need to rely as much on external entities.

This is effectively a circular supply chain as opposed to a linear one. No material ends up dead in the water. It all gets used at some point, thus reducing cost, volatility, and negative environmental impact.

The Internet of Things (IoT)

Many supply chains already utilize the Internet of Things (networks of interconnected devices)  in their processes. Nonetheless, a massive uptick in IoT usage is expected over the span of 2023.

Not only will IoT devices be used to track real-time progress within the supply chain, but they will also be used to automate certain processes. In doing so, they stand to save organizations are being set up to save both time and money.

Considering the problems that supply chains have faced over the last few years, introducing efficiency-improving devices to these supply chains may make a substantial difference. These devices will not only inform organizations on which decisions to make but will also cut overall labor costs.

In all likelihood, cost savings will be passed on to customers. In other words, the overall cost of goods will either reduce or stagnate.

Cybercrime

Another thing to look out for in 2023 is a rise in cybercrime. Supply chains provide many opportunities for cybercriminals to obtain organizational data. If they obtain this data, they can do substantial damage to an organization.

Now, how might a cybercriminal attempt to break into a company's network through the supply chain? They might do it through barcode scanners or through devices that are connected to the Internet of Things (IoT).

Every time a new piece of technology is added to the supply chain, it poses another security risk. Therefore, when adding new technologies, you need to be sure to devise a plan to mitigate potential break-ins.

Not only should you do this within your organization but within your partners' organizations as well. Maintain close communication with your partners and devise proactive strategies with them as a means of keeping cybercrime to a minimum.

Supply Chain Forecasting

One last trend to look out for is an improvement in supply chain forecasting. This refers to knowing what quantity of specific products will be necessary to keep shelves stocked and customers satisfied.

This is one of the most challenging aspects of managing a supply chain. Fortunately, technology has come along to improve our forecasting ability.

Internet of Things devices are able to provide real-time monitoring of different products at different points throughout the chain. Naturally, this results in an even more in-depth analysis compared to what was previously available.

This analysis is integral to understanding what factors affect product supplies. By understanding these factors, companies will be better able to predict when more products are necessary and when they can scale back production on specific products.

This ensures that products stay on the shelves and that costs are kept to a minimum for everyone involved.

Learn More About the Supply Chain Trends of 2023

There they are, the supply chain trends we anticipate 2023 will bring. Looking to learn more about supply chain operations in the coming year? If so, consider becoming a member of the Houston chapter of the Association for Supply Chain Management (ASCM).

Our organization provides a wealth of information and resources to professionals in the supply chain and logistics industries, including numerous events and educational opportunities.

Become a member of the Houston chapter of the ASCM today!

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