71% of global companies highlight raw material costs as their number one supply chain threat for 2023. During 2023, other key steps to protect against material access issues include: Protect your core offer and mitigate risk by removing critical time spent managing low-demand items.
Among the most common supply chain challenges in 2021 and 2022 were things like port congestion, manufacturing delays, and extreme weather events (including hurricanes, tornadoes, wildfires, and more).
The main trends in supply chain management today are artificial intelligence and automation, supply chain as a service, circular supply chains, risk management and stability, and increased focus on sustainability.
By 2025, many supply chains may shift from global flows of goods and services to national, regional, and local networks of buyers and suppliers.
In 2023, supply chain trends will focus on automation, sustainability, digitization, collaboration, innovation, flexibility, and agility to stay ahead of changing customer demands and market disruptions.
In general, supply chain prospects seem positive in 2023, although not as strong as before the pandemic. Congestion in the shipping industry is getting more manageable now, and recovery is picking up pace. A return to normalcy is anticipated sometime in 2023.
As we move into the second half of 2022, shippers and carriers are continuing to face challenges due to the geopolitical environment, rising fuel costs, and inflation. Also, the industry is still dealing with a pandemic, driver shortages, and higher expectations from end customers.
Supply chain problems emerged during COVID-10 lockdowns due to shifts in demand, labor shortages and structural factors. Evolving geopolitical factors are now causing new risks and pockets of stress. Affected sectors include metals and mining, chemicals, automotives, semiconductors and technology.
While Tesla's milestones in automotive manufacturing are impressive, the company also faces a fair share of issues, including supply chain management.
Logistics trends in 2023 are expected to evolve more to cope with global economic and technological advancements. Logistics industries will focus more on automation, labour shortage and real-time tracking for efficient supply chain management.
The future of IoT will increase productivity in delivery and supply chain industries. Many logistics experts use these new resources to enhance their supply networks, reduce costs and generate revenues.” He also predicts an increase in artificial intelligence to solve the many inefficiencies in today's supply chains.
At the end of the first quarter, we're seeing three major topics that are challenging the procurement industry: the aftermath of COVID; an increasing need for end-to-end transparency and speed; and the importance of overcoming market and supply chain instability.
Future-proofing the supply chain requires fostering supplier relationships based on trust and mutual benefit. Business reputations hang on product availability, which depends on suppliers. Identifying the suppliers best suited to your operation is a function of data analysis.
India, the United States, and Brazil are hardest hit in the supply chain with significant shortages of many different product categories. Interruptions in the supply chain have proved particularly difficult to overcome and control, which has put these countries at a disadvantage in global trade.
The barriers have been categorized into the six main different levels namely managerial, organizational, technological, individual, financial, social and cultural.
According to an analysis by IHS Markit, the supply chain delays seen this year will carry on into 2022 and possibly 2023. The logistics crisis is worsening due to the economic rebound, staff shortages, and the overstrain in transportation systems.
The index peaked in December 2021 and has since come back down, suggesting the supply chain is on its path to moderating although still elevated by historical comparison. The most current reading in January 2023 was 0.94, down from 1.19 in December.
The supply chain issues that have been plaguing businesses seem like they will continue into 2023, and possibly beyond. As long as demand stays ahead of supply, the issue will likely continue. Marketers will have to adapt and confront the supply chain issues and hopefully, have already begun planning for next year.
A recent survey from the Food Industry Association (FMI), a trade organization that represents food retailers and wholesalers, found that 70% of retailers said supply chain disruptions are negatively impacting their business, up from 42% the year before.
In addition to improving supply chain transparency and traceability, blockchain can also help to reduce the risk of fraud and errors. By using smart contracts, firms can automate the execution of certain supply chain processes – such as the payment to suppliers – based on the fulfilment of predefined conditions.
The global supply chain management market size was valued at USD 21,129.2 million in 2022 and is expected to expand at a CAGR of 11.1% from 2023 to 2030.
Supply Chains Aren't Fixed, But They're Getting There. Problems remain, but complaints of missing parts, delivery delays and gluts of half-finished products are becoming rarer.