The Biggest Supply Chain Trends for 2023, Per Top VCs
Due to problems with the inventory management process, supply chain interruptions, the weakening economy, and shifting consumer buying habits, there has been a significant excess of inventory during the last two years. We may anticipate the growth of B2C e-commerce platforms that make use of this extra inventory as well as B2B platforms that make it possible to dump excess inventory in 2023.
The year 2023 is expected to be one of innovation, with disruptions, markets, and technology all expected to have an impact on supply chain management trends. New technologies and methods are developing that will completely transform how supply chains function as a result of businesses searching for more effective and environmentally friendly solutions.
The way businesses manage their supply chains is going to change drastically over the next several years, thanks to innovations like blockchain technology, artificial intelligence, and Industry 4.0. With the aid of these innovative technology, businesses will be able to make better choices, save money, and respond rapidly to changing market circumstances.
Along with technical improvements, businesses are concentrating more on lowering greenhouse gas emissions and improving the sustainability of their supply chains. This is anticipated to take on even greater importance in 2023 as businesses deal with growing customer demand for greener, healthier goods as well as increased carbon charges. At the same time, supply chains will be put under further stress by impending inflation and the potential for a downturn.
Let's start by taking a look at the main causes of current supply chain management trends.
Trends in Supply Chain Management to Watch in 2023
Some of the major supply chain management trends for 2023 are listed below:
1. Supply chain management automation
In the supply chain sector, automation is becoming more and more crucial. Companies may save expenses, improve productivity, and simplify operations with the use of automated technologies. Companies must invest in cutting-edge technologies like AI/ML, robots, and the Internet of Things in order to profit from these advantages (IoT).
These innovations may save expenses for businesses while streamlining processes and boosting productivity. They may also assist businesses in enhancing supply chain visibility and improving decision-making using real-time data. Companies can keep on top of trends and maintain their competitiveness in a market that is always evolving by investing in these technologies.
Technology is still crucial for supply chain firms from a strategic perspective. According to a recent Gartner poll, 61% of participants believe technology may provide them a competitive edge. Many also point to a number of developing technologies as important areas for investment, with 20% going to robots.
2. Use of blockchain technology for data handling
The supply chain sector may undergo a change thanks to the distributed ledger technology known as the blockchain. Businesses may safely store and exchange data throughout their entire network by using blockchain technology. Smart contracts may also be used by organisations to automate procedures and guarantee that everyone involved complies with legal requirements.
Businesses can easily monitor and trace items across their supply chain thanks to blockchain technology. This lowers the possibility of fake items entering the market and helps them make sure that only high-quality products are given to clients.
New technologies are offering great prospects for improvement throughout the supply chain, according to a Deloitte report. The use of blockchain in the supply chain has the potential to save administrative costs while increasing transparency and traceability.
3. Supply Chain Sustainability
More businesses are searching for methods to lower their carbon impact as environmental awareness rises. This has caused the supply chain sector to put more emphasis on sustainability. Businesses must make an effort to create sustainable practises that reduce their negative environmental effects while still delivering high-quality goods and services. They may do this to continue competing in a market that is becoming more environmentally concerned.
Businesses need to concentrate on being more sustainable in 2023 by implementing green logistics and renewable energy options. In order to lessen their influence on the environment, businesses may also use resources like carbon footprint calculators and eco-friendly packing materials. These actions may help businesses make sure that their supply chains are robust and sustainable in the face of shifting market circumstances.
"84% of supply chain executives expect to invest in climate adaptation and mitigation strategies in the next 18 months," according to a Gartner poll.
4. The Supply Chain's Agility
The importance of agility in the supply chain sector is rising. To adapt fast to changing client demands, businesses must be able to swiftly change their strategy and procedures. This necessitates that businesses maintain a flexible supply chain that can adapt to unforeseen delays or variations in demand. They must develop a flexible approach that enables them to swiftly keep in front of the competition and adjust to changes in order to accomplish this.
To become more nimble, businesses must invest in cutting-edge technology like cloud computing. They may use data analytics to get current insights into their supply chains and use this knowledge to influence smarter choices. By taking these actions, businesses may become more adaptable and continue to compete in a market that is always evolving. A novel kind of supply chain will be needed in this quick-moving, dispersed, and consumer-focused environment. Traditional supply networks aimed for cost-effectiveness and reliability. Future supply chains will have to be far more dynamic in order to forecast, plan for, and react to a quickly changing demand as well as a constantly shifting product and channel mix.
5. Risk reduction and adaptability
The industry of supply chains is placing more and more emphasis on risk reduction. Companies need to be able to recognise and control possible risks before they develop into major issues. They also need to have solid plans in place for handling unforeseen interruptions and adjustments. Companies must make investments in solutions that enable them to promptly recognise and mitigate possible hazards while also adjusting their operations and plans to changing circumstances.
Businesses should concentrate on creating strong networks that can swiftly adjust to changes in 2023. They also need to use predictive analytics tools that can spot dangers before they develop into major issues.
The demand for control of end-to-end risk management inside the supply chain is growing, according to one of the Gartner findings: "As businesses face a greater number of unknown risks, paired with management of existing ones."
6. Collaboration in Planning
In the supply chain sector, collaborative planning is becoming more and more significant. To establish ideas fast and make sure that operations go well, businesses need to be able to work with their partners and suppliers. To coordinate various teams and enable them to work towards a similar corporate objective, collaborative planning is crucial. Teams may create cooperative strategies by working together to take into consideration the requirements and goals of all stakeholders.
In the next year, businesses should concentrate on creating cooperative relationships with their suppliers and partners. To manage their supply chains more effectively, they should also make use of digital solutions like cloud-based technology and predictive analytics. Companies may make sure that their operations are effective and flexible in the face of shifting market circumstances by following these measures.
IoT monitoring is becoming more and more significant in the supply chain sector. Companies can rapidly and precisely follow the flow of their products throughout the supply chain by using IoT-enabled devices. This enables them to get perspective into their processes and promptly make better choices. Furthermore, it guarantees that their operations are effective and flexible in response to changing market circumstances.
Following significant macrosocial and geopolitical changes that have elevated "supply chain" to a level it has never reached before 2021, more money will be invested in supply chain technologies in 2023. Along with that, you may anticipate this to be a breath-taking area to observe since crisis vintages tend to provide some of the highest private market profits.