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Top 5 Benefits of Efficient Supply Chain Management in 2024

supply chain management benefits

Image source: Rawpixel | Top 5 Benefits of Efficient Supply Chain Management in 2024

The aim and ambition of any manager or business owner is to be organized. Businesses that are able to conduct their operations in a systematic way stand a far better chance of becoming successful in the competitive landscape. In this regard, having a ready and organized supply chain is crucial.

It is worthwhile to pay attention to and strive for excellence in this field even if your business or place of employment is just getting started or has a limited volume of logistics-related activities. We’ll discover the primary benefits of effectively managing the supply chain in this post.

Read also: Logistics in E-commerce: Challenges, Importance and Best Practices

Benefits of Efficient Supply Chain Management

Faster processes

Ever heard the saying “time is money”? It becomes evident when we work with the supply chain. Fast delivery is valued by clients and business associates for both contracted services and purchased goods.

Because of this, organizing your supply chain can make your company more appealing to customers by accelerating the manufacturing and distribution of your goods.

Additionally, a well-organized company guards against unforeseen circumstances that can cause your entire production line or service delivery process to lag, ensuring the satisfaction of your customers and partners.

Cost reduction

While generating new business and attracting new clients is undoubtedly important, cutting expenses is also a smart move to improve the financial stability of your business. In this context, an effective supply chain organization might be beneficial.

You can identify which of the company’s present processes are generating needless costs with the help of good management. In order to provide more optimization and cost reduction so that the complete chain is managed, identification is the first step in seeking improvement and cost reduction in connection to these activities.

Increase in production capacity

As was previously mentioned, a business that establishes effective supply chain management is able to fulfill delivery obligations, guaranteeing customer satisfaction. As a result, repeat business and increased demand for goods and services are generated.

A well-structured supply chain can also optimize your company’s manufacturing process, allowing your staff to produce more and serve a wider audience or handle last-minute orders, which can generate additional revenue.

Stock control

Having an overabundance of inventory is frequently a bad indicator, particularly if a sizable portion of it remains stagnant. This indicates that the business is overspending on pointless goods, which could significantly raise its costs. This post contains six suggestions to assist you and your business manage your inventory correctly and prevent blunders.

The supply chain’s structure and management allow for the observation of the quantity of products that need to be kept in stock in order for the business to be able to operate and seize market opportunities without having to buy or hold excessive amounts of inventory.

Problems solution

Problems are unpleasant, yet unanticipated things do happen. The effects of an unforeseen circumstance on your organization, along with the time and effort required to rectify it, can result in substantial losses for the company.

In addition to being able to take action to prevent further damage to other parts of your supply chain, having all processes properly organized will enable you to quickly determine the underlying source of these issues and address them.

Count on the ideal partner – 3PL Links Inc.

Now that you are aware of the primary benefits of organizing and preparing every aspect of your business’s supply chain, how about seeking the support of a business partner to assist you in this endeavor? Rely on a business that is well-known in the logistics and supply chain industry! With over 25 years of experience, 3PL Links can assist you in streamlining your daily logistics and commercial operations! Please contact us to find out more about our company and offerings.

The Future of Supply Chain: Top 5 Supply Chain Trends in 2024

warehousing

Image source: Rawpixel | The Future of Supply Chain: Top 5 Supply Chain Trends in 2024

Managing the market’s intricacies will call for a proactive approach that goes beyond simply responding to demands as the halfway point of 2024 draws near. It will be essential to prepare for and welcome them, particularly in the context of the difficult supply chain and procurement environments.

If the pandemic has taught us anything, it is that businesses must invest in more transparent, flexible, and sustainable processes and optimize resilience in order to assure corporate success and continuity. Although reaching this goal is not easy, it is feasible to improve service levels, boost income, and save expenses by using technology and effective supply chain management.

In the supply chain domain, technology functions similar to Prometheus’ fire, shedding light on management and increasing cost transparency and operational efficiency. It’s not by accident that 82% of procurement leaders surveyed for the Gartner research “Future Supply Chains: Resilience, Agility, Sustainability & Technology” in 2023 stated they want to make significant investments in technology over the next five years.

This investment is motivated by several factors, such as:

  • The need to boost productivity and efficiency: Procurement managers may use technology to automate processes, make better decisions, and cut expenses.
  • Enhanced supply chain visibility and control: Procurement managers can monitor the movement of materials and information, spot hazards, and pinpoint areas for improvement with the use of disruptive technologies.
  • Fulfilling sustainability demands: procurement specialists can lessen the supply chain’s environmental impact with the use of technology.

However, technology alone is not sufficient. In order to adapt, innovate, and integrate new opportunities and tactics, as well as to ensure the successful and long-lasting implementation of such solutions, the human aspect will be essential. We’ll talk about several trends for 2024 in this post, with tips you can use for your company. The times have changed, and to avoid falling behind, you must adapt to the new reality.

Top 5 Supply Chain Trends in 2024

1. Increasing focus on process automation

The pursuit of accuracy and efficiency in the supply chain is closely associated with process automation, which uses technology to carry out operations without the need for direct human interaction. Disruptive technologies like machine learning will be enhanced and integrated as a strategic requirement in 2024 for businesses trying to streamline operations, cut expenses, and obtain a competitive edge.

Automation in this context is greatly aided by system integration, which enables effective communication between various software programs. Processes are accelerated, increased efficiency is brought about, and operational openness and compliance are encouraged.

Moreover, investing in automation technologies increases productivity, improves process precision, lowers the possibility of errors, and eliminates repetitious work, freeing up human resources for more strategic and valuable work.

2. Agile and responsive management

The pandemic has made it clear that the dynamic issues faced by supply chains cannot be adequately addressed by traditional approaches to risk management. Sustaining operational continuity will need the capacity to react quickly to risks.

Due to the increased susceptibility of many industries to natural disasters, geopolitical conflicts, and economic instability in recent years, the procurement sector must be prepared for unanticipated events, minimize any negative effects from the outside world, and maintain the resilience necessary to maintain the integrity of its supply chains.

3. Data: the new oil

While the analogy between data and oil is not new, data’s position at the center of decision-making is undeniable since it plays a critical strategic role in the digital supply chain management process.

supply chain trends

Image source: Pexels | The Future of Supply Chain: Top 5 Supply Chain Trends in 2024

Data analysis is expected to play a central role in company decisions by 2024, leveraging historical performance to forecast future circumstances and guide decisions. Structured data analysis skills are essential for improving operational effectiveness as well as resilience and agility in a highly competitive and dynamic company environment.

4. The power of collaboration

In 2024, supplier and buyer cooperation will become even more essential in the networked supply chain ecosystem. It’s feasible to predict market dynamics and volatility with good communication.

In order to ensure effective communication with suppliers, partnerships between the different supply chain participants and secure information exchange will be required. This means that information about requests, unanticipated events, and forecasts will be shared via integrated and moral systems, creating a setting that is favorable to all the links.

5. The human connection is transforming the service layer

The success of supply chains will always depend on human capital, even in the face of technological advancement. Investing in resources that combine technology and human aspects is the key to improved efficiency, agility, and innovative solutions to the difficulties facing the industry.

According to predictions, in 2024, one cannot undervalue the importance of human creativity, adaptability, and inventiveness in the age of disruptive technology. In other words, striking the correct balance between technology and human connection is vital for achieving effective supply chain management.

Businesses that manage their supply chains in line with these digital and behavioral trends in 2024 will be well-positioned to meet the demands of the global market and differentiate themselves in a constantly changing ecosystem. Because of this, the procurement sector requires experts who can take the initiative now more than ever in this highly disruptive environment.

Did you find this article interesting? Make sure you distribute to your network. Let’s work together to transform the supply chain and logistics sectors with 3PL Links!

How to Protect Supply Chain from Cyber Attacks

supply chain cybersecurity

Image source: Flickr | How to Protect Supply Chain from Cyber Attacks

The management of data intelligence in the supply chain presents an enormous challenge to those involved. The amount, velocity, and sharing of data all influence how it is received and evaluated, and these changes intensify with the consolidation of digital transformation.

The supply chain depends more and more on IT systems to ensure information flow and security as it develops. However, there is a “but” to this tale.

Global IT professionals have faced challenges related to data decentralization. People who operate in the supply chain ultimately communicate through alternative channels, even in the presence of dependable systems, applications, and other tools at their disposal.

Read also: Supply Chain Risk Management: Top 5 Supply Chain Risks to Watch Out For

Supply chain risk management

Moreover, a lot of businesses manage everything via network-accessible spreadsheets and other documents, frequently without any security. In addition to making data analysis more difficult, using parallel platforms—which are not approved by the company’s IT department—leaves data entirely vulnerable to cybercriminals.

The most frequent conversation these days is about someone breaking into their smartphone, system, or WhatsApp account. Keep in mind that equipment can get lost or broken; if the data is exclusively on the device, recovering it will be extremely difficult.

However, it must be acknowledged that there are other weak links as well. Several businesses continue to be reluctant to spend money on more modern features and security measures.

The good news is that the technology industry provides specific products for varying business sizes, guaranteeing security for those who are ready to invest within their means.

More practicality and safety

The majority of supply chain employees choose to use a resource they are already familiar with due to practicality rather than learning how to use a new application or system, which, let’s be honest, doesn’t always function as planned.

However, supply chain-specific apps and systems, along with the diligent work of authorized tech providers, will ensure the security of your company’s data as well as that of the entire ecosystem of businesses.

Relationship with suppliers

Every access point needs to take information security into account. Thus far, we have discussed the internal operations of the organization. However, are you aware of how secure the supply chain’s providers are?

A business transmits and receives vast amounts of data, therefore it must maintain partnerships with accounting and legal departments, infrastructure providers, software providers, input providers, and many more. not only for your business but also for its clients and associates.

As a result, you must exercise extreme caution when selecting each partner, making sure they have sufficient security procedures and resources in place.

What happens in the event of a data leak?

For instance, your business might be held accountable if someone is hacked online or if your supplier experiences a data leak. This might be particularly problematic if the leak impacts the data of the final customer.

In light of this, it is best to set guidelines for hiring suppliers and partners, including specific requirements on data handling procedures, compliance with the General Data Protection Law (LGPD), security assurances, and information protection resources used, among other things.

Simply stated, if your business is equipped with security resources, make sure that everyone else in the supply chain feels the same level of accountability.

Count on IT professionals

Individuals responsible for managing the company’s essential operations, which boost profitability, shouldn’t be overburdened with tasks.

So, assign IT specialists to handle the technology and make sure that the best data security procedures are being followed.

IT specialists with experience know which businesses to choose for security, software, and data monitoring solutions.

These workers need resources and the company’s approval in order to carry out their duties effectively. Micromanagement just causes internal company operations to lag.

Our personal preference for cybersecurity and other IT-related duties is Dygital9. Every IT-related job from 3PL Links has been turned over to them, and they take care of everything to protect our esteemed data from intrusions.

How to protect data in supply chain enterprises?

Cybercriminals are skilled at identifying flaws in systems, and their attacks have the power to shut down businesses and steal data.

Given the increased scalability of supply chain enterprises, data handling needs to be even more secure.

For businesses lacking data security expertise, the following questions may help guide the decision:

  1. Does the solution provider have a good reputation in the market?
  2. Do they have market experience?
  3. Do they serve companies of different sizes?
  4. Do they have plans that can meet your current needs and future growth?
  5. Do they work with certificates suitable for data transit?

For 3PL Links, data security is a serious matter and we seek to align ourselves with international protocols to keep our customers in a protected environment.

Mastering Supply Chain Management KPIs: A Comprehensive Guide

Learn how to monitor your supply chain more efficiently

This is a question you may have asked yourself. How can supply chain performance be improved? The solution is frequently not obvious, therefore in this post, we’ll try to make it clear how you may evaluate and boost the efficiency of your company’s supply chain.

supply chain management KPIs

Mastering Supply Chain Management KPIs: Your Comprehensive Guide to Success | Image source: Pixabay

What are supply chain management KPIs?

Supply chain management KPIs are the quantitative and qualitative measures that a business monitors to determine whether its production and logistical operations are meeting its performance objectives. Every KPI tracks a different element of your supply chain activities. By periodically gathering data on this KPI, your business can gain visibility into how close you are to meeting your performance benchmarks, where there is room for improvement, and how to structure a more efficient process within the supply chain, preventing waste of materials, time, and money. The most popular supply chain KPIs we’ll discuss are listed below:

  1. Perfect order rate;
  2. Order fulfillment fee;
  3. Freight bill accuracy;
  4. Stock turnover;
  5. Return on investment (ROI);
  6. Supply chain costs;
  7. Average delivery time;
  8. Customer order cycle time.

However, because there are so many KPIs you can monitor, it is crucial to concentrate on the ones that are the most significant for your company because each KPI will differ depending on the market sector, customer wants, and business challenges of each company.

Read also: 7 Efficient Strategies to Mitigate Risks in the Supply Chain

How to improve your supply chain KPIs?

Tracking your supply chain performance may seem challenging because there are so many crucial supply chain metrics to analyze, but tracking and evaluating KPIs becomes much simpler with the correct tools.

Supply chain management software bundles make tracking metrics simple and uncomplicated by providing real-time visibility into the KPIs that are most important to your company, such as inventory levels, distribution, suppliers, and inventory turnover. The best supply chain analysis software includes tools to assist you in extracting insights from the gathered data as well as analytical dashboards that consolidate and make readily accessible key supply chain metrics and insights.

Additionally, this level of visibility aids businesses in enhancing performance across numerous KPIs. With current data being automatically tracked and easily accessible, you’ll be better able to predict demand and inventory requirements with greater accuracy and pinpoint problem areas with greater speed.

Optimizing your supply chain

Its infrastructure can monitor and enhance KPIs throughout the whole supply chain because it is a technology-focused enabled chain. With the aid of inventory management software, you can remotely manage inventory, keep an eye on important metrics, and maintain inventory control without having to worry about distribution, product lifecycle management, or warehousing.

The information required to calculate ROI can be found through dashboards. After all, it is crucial to understand the return on your investment in order to increase production and keep your business’s revenue. Dashboards also give you visibility into stock levels and turnover.

Quick and accurate order fulfillment services from e-commerce or CRM systems expedite supply chain processes when orders are received without compromising quality. Your order cycle time, fill rate, and perfect order rate all improve as a result, and you can track these metrics using the analytics dashboard.

Supply Chain KPIs FAQ

We’ve broken down some of the most frequently asked questions concerning the key supply chain performance indicators below.

What are the most important supply chain management KPIs?

The on-time delivery rate, fill rate, freight bill accuracy, inventory turnover, return on investment (ROI), gross margin, supply chain costs, average lead time delivery time, damage-free delivery, customer order cycle time, and cash-to-cash cycle time are among the most crucial KPIs in the retail supply chain.

How can you track KPIs?

Platforms for supply chain management that offer thorough analytics dashboards and take into consideration information qualification and quantification can be used to track KPIs.

Do KPIs help with supply chain management?

KPIs aid in supply chain management by monitoring supply chain effectiveness and spotting chances for optimization, with the goal of enhancing and lowering the cost of logistical and operational activities.

How do you measure supply chain performance?

By establishing the KPIs you want to monitor and employing analytical reporting tools to analyze these measures, you can assess the performance of your supply chain.

Did you find this article to be interesting? Keep checking back for more advice from 3PL Links, which offers its clients the most cutting-edge supply chain and logistics solutions available today.

7 Efficient Strategies to Mitigate Risks in the Supply Chain

7 Strategies to Mitigate Supply Chain Risks

7 Efficient Strategies to Mitigate Risks in the Supply Chain | Image source: Pexels

Issues with suppliers, calamities that occur naturally, data breaches, health issues, or security issues. The risks that the entire supply chain faces are numerous, and if they are not immediately and effectively addressed, they could result in severe disruptions and major financial issues for the business.

Therefore, implementing a supply chain risk management strategy is necessary in order to preserve production, finances, and the company’s reputation. This makes it easy to examine the risks associated with each stage of the production flow and determine what steps should be taken to prevent chain interruptions or failures.

7 Strategies to Mitigate Risks in Supply Chain

Certain strategies aid in lowering supply chain risks, assist businesses in seeing gaps, and look for a solution that ensures business continuity, product quality, and prevents financial issues.

Diversify the supplier base

In a risk management approach, the saying “don’t put all your eggs in one basket” is entirely true. The consequences of relying on a single supplier or suppliers from a particular region might be severe if the supplier is unable to meet the needs of the organization. It is possible to distribute risks and, of course, lessen the effect that a supplier issue could have on production by expanding this base. Additionally, this diversification enables us to look for goods and services with lower costs and higher quality.

Count on backup suppliers

In addition to the diversification of the supplier base, it is crucial to have backup suppliers who can swiftly offer the resources required to keep production going in the event that the primary supplier experiences issues or is unable to fulfill an order.

Create a risk management strategy

When it comes to lowering risks, planning for the worst is not being pessimistic; it is being prepared. A risk management strategy must recognize and evaluate risks throughout the whole supply chain and enable the business to be crisis-ready. This plan must outline the necessary actions, make processes more adaptable, and prepare responses to any production-impacting incidents.

Prioritize potential risks

Due to the likelihood that they may appear, some risks need to be given priority. After that, each one must be evaluated in light of how it would affect the company’s operations in order to sketch out the necessary steps to avoid the issue. To do this, it is vital to examine each supplier, potential production disruption scenarios, and the locations that pose the biggest risks. By doing so, it’s also possible to learn more about the supplier, including whether they’ve had issues in the past and how they dealt with them, as well as whether they have the expertise and resources necessary to handle them.

7 Strategies to Mitigate Supply Chain Risks

7 Efficient Strategies to Mitigate Risks in the Supply Chain | Image source: Pexels

Gain greater supply chain visibility

There are multiple steps in a supply chain, and each one poses risks and obstacles of its own. No matter how minor the issue may be, any one of these processes can have major effects on production, therefore the sooner it is found and fixed, the better. Therefore, the ability to take action to reduce risks increases with more visibility.

Share risk management

Involving partners and suppliers in the risk management process aids in a better understanding of the risks that each of them may provide as well as the development of solutions to reduce those risks and take immediate action when an issue arises. Transparent information exchange is necessary for everyone to cooperate in order to address issues and lower risks.

Review risks regularly

Being updated is essential for an effective risk management approach. Processes could change, and new suppliers could appear. Therefore, it is crucial to frequently check it to make sure that it is actually ready to face and prevent difficulties in the future.

3PL Links Inc. provides numerous solutions connected to macroeconomics, commodities, and other information so that your firm can have a 360° perspective of the whole supply chain and decrease production risks. Find out how we can help you by speaking with one of our experts.

Revolutionizing Global Supply Chain: The Power of Flexible Technologies

the global supply chain

Revolutionizing Global Supply Chain: The Power of Flexible Technologies | Image source: Pixabay

When it comes to the acquisition, sale, or transit of goods, inputs, and services between countries, businesses, and professionals that use software, strategies, processes, and best practices in international logistics continue to face challenges. Such constraints date back to the Covid-19 epidemic and are still present today due to political turmoil and the wars in Ukraine and Russia, which still involve the US and China.

Many businesses seek to diversify their suppliers of goods, inputs, and services as well as their partners who assist in changing processes, procedures, and all business-related technology for these and other reasons. As a result, businesses in nation A that previously purchased goods from nation B now have to find new suppliers and begin importing goods from nation C, a process that experts have already termed as “reglobalization.”

In light of this, the phrase “global supply chain” is associated with this reglobalization.

What Effect Does the Global Supply Chain Have on the COMEX?

Many organizations, enterprises, and professionals seek beyond their own companies. To prevent disruptions and delays in their own enterprises, they also keep an eye on the operations, procedures, and technologies of their suppliers, clients, and other business partners. The Global Supply Chain is a network of best global logistics practices, software, strategies, and governance norms that connect everything and everyone.

According to a report recently released by Bloomberg, the USA set a record for exports and imports last year, reaching an astounding 73 countries that received exports from North America and imports from 90 nations, totaling US$ 690.6 billion. This gives you an idea of how the Global Supply Chain is one of the cogs that move the world.

Another significant piece of information comes from the Danish shipping giant Maersk, which is known as the “thermometer of global trade” and is in charge of carrying roughly 16% of all containers worldwide. According to the company, sluggish economic development would cause a 2.5% reduction in global container transport volumes in 2023. Because of this, what was once above-average consumption is now sharply changing, and as a result, is considering a restructuring to link and integrate its land, sea, and air activities.

The renowned shipping firm has already begun to implement some steps, such as downsizing ships, increasing air freight services, and creating a network of scattered facilities, to help it manage cargo flows. This entire rearranging of the game pieces supports the concept of reglobalization.

The Influence of Flexible Technologies on Reglobalization in the Global Supply Chain

Some people perceive issues, while others see opportunities. Because the reality is that the current situation provides a fantastic road map for reinvention, this adage from the business world is more true than ever. Determining whether professionals are performing their tasks correctly is one of the major obstacles in the global supply chain, rather than understanding what they should be doing.

In addition to this difficulty, the situation becomes even more complicated when you consider that firms involved in the global supply chain tend to encounter greater volatility in the coming years, causing organizations and leaders to constantly reinvent themselves. It’s crucial to invest quickly and strategically, focusing primarily on technologies and business processes that can adapt to the rise and fall of “global business waves”.

Last but not least, companies that want or need to be in line with this new future essentially need to concentrate on four areas of innovation: commercial; achieving sustainable results; real-time decision-making; and the focus on people.

But how should one go about doing this? Understanding experts, customers, suppliers, and business partners, as well as what expectations to explore to deliver competitive advantages, are among the top priorities for the exclusive innovation plan for the upcoming years. Modern software does not need the infamous and expensive adjustments that are required for businesses that use “each new wave of business” in the global supply chain, making artificial intelligence a powerful companion. Otherwise, investments in these solutions will not lead to significant reglobalization of business.

Building a Better Future: The Ultimate Guide to Sustainable Supply Chain

sustainable supply chain

Image source: Pixabay | Building a Better Future: The Ultimate Guide to Sustainable Supply Chain

Most domestic and foreign corporations, which are positioned at the top of the economic supply chains in terms of size and significance and which increasingly impose strict sustainability standards on the other firms in the supply chain, are finding that a sustainable supply chain is an important component of successful corporate governance.

This trend is unavoidable as a result of economic globalization, and it has never been more crucial because business decisions about sustainability will have an ever-greater impact on supply chains that have grown more global.

Being sustainable entails reconsidering your business strategy and addressing a number of social and environmental challenges, such as waste management, corporate welfare, and energy conservation. How can a corporation that follows an ethical code be considered sustainable if the products and services it uses aren’t held to the same guidelines?

 

What is a sustainable supply chain?

It would be too simple to say that it is the group of businesses engaged in a manufacturing process, which starts with raw materials and ends with the end product or the provision of service after going through numerous stages of processing and intermediate activity. The sustainable supply chain should actually be viewed as a living, evolving organism with enterprises that come and go and in any case are always changing. Therefore, ongoing supply chain supervision is required; an annual assessment is insufficient, possibly while drafting the social balance sheet. Sustainability is a dynamic idea that must be embedded in a company’s culture and influence every decision.

The major corporations are coming to understand that if the sustainability of the supply chain is not regulated, it is pointless to concentrate on corporate responsibility.

New types of companies are emerging as a result of this trend, representing a new, sustainable method of conducting business. Examples include US-based benefit companies and b-corps, which are the pinnacle of Italian corporate law.

However, more and more businesses are deciding to adopt a code of conduct that considers not only profit (for the sole benefit of the shareholders) but also the well-being of the community and the environment (and, therefore, the interests of all stakeholders) in addition to the legal requirements.

These businesses prioritize preserving the sustainability of their products by rigorously monitoring ethical, environmental, and social suppliers who stick to the same standards of sustainability. This process includes initial supplier selection based on sustainability and ongoing monitoring of suppliers’ behavior.

 

Why are companies using sustainable supply chains?

We have so far observed the supply chain from the perspective of the business at the top of it. But what are the advantages that the other organizations that are an affiliate of it can gain? In addition to the obvious opportunity to remain within the supply chain and thus interact economically with other businesses, consequences of a reputational type are seen in an economy with 4.0 consumers who are increasingly conscious and attentive to responsible purchases.

Sustainable catering, which we have already covered in prior work, is an example that is within everyone’s reach.

Fashion and apparel in general are a retail sector that is currently very concerned with the sustainability of the supply chain; the leading and most recognizable brands in this industry have now made sustainability a success factor. One prominent example is Levi’s, which states that it only collaborates with businesses that uphold the principles of the company-approved code of conduct and fully implement them in the interest of supply chain improvement. The supplier effectively runs the risk of being cut off from the supply chain if he doesn’t comply.

Breeding and cosmetics are still subcategories that we could bring up, but the truth is that there isn’t a single area of the economy right now that won’t have to deal with corporate social responsibility in the near future, either because of political decisions or because of business opportunities.

How far along are you with your company’s sustainable supply chain?

Learn more with the help of our evaluation of the sustainable supply chain. Contact us now!

Maximize Your Efficiency: Top 5 Supply Chain Trends to Adopt in 2023

a man handling shipping boxes

Image source: Pixabay | Maximize Your Efficiency: Top 5 Supply Chain Trends to Adopt in 2023

We can all agree that the supply chain is critical to a business’s operational success, right?

This is because it plays a crucial role in keeping a firm running by ensuring the essential inputs, locating suppliers, negotiating better rates and terms, and managing the entire process.

Adjusting to new times and analyzing market behavior are critical for bringing about improvements in the segment and optimizing all of the previously mentioned concerns.

With this in mind, we’ve identified key trends to keep an eye on in 2023 and, if relevant, implementing as quickly as possible in the supply chain of your organization to avoid risks and minimize the commitment of your business and profitability.

Read also: Improving Supply Chain Visibility: The Impact of Data Strategy

 

1) Rise in prices, slowdown in production and reduction of inventories in the US and Europe

Given that many businesses rely on resources and inputs from other countries, it is hard to ignore the economies of the world’s major powers.

In the United States, inflation was 6.5% by the end of 2022. The pattern of excessive inflation continues across Europe. The eurozone finished the year at 9.2%, after reaching double digits this quarter.

When a country enters an economic downturn, it usually causes some predictable behaviors in its businesses, such as a halt of production and a reduction in inventory.

 

2) Cyber security

As time passes, cybercriminals get more skilled and equipped to steal vital information from businesses.

On the other side, in order to combat these online crimes, many businesses and experts are emphasizing cybersecurity.

Attacks on the supply chain are one of the most serious concerns to watch out for this year.

In this theft, hackers get access to corporate networks by exploiting loopholes or exploiting hacked third-party devices that are part of the organization’s supply chain and partners.

In a nutshell, the failures are caused by the fact that suppliers do not always have security management, allowing gaps in the system.

And, contrary to common perception, this form of scam poses a huge risk to your company, as it may damage or even stop your entire operation, in addition to data theft, as we have already discussed.

As a result, proactive measures are required to record and analyze user behavior, recognizing patterns or illegal access. Aside from having software and technology that will collaborate with safety and security.

 

3) Use of collaborative robots (Cobots)

Cobots, also known as collaborative robots, are machines that, unlike robots used in industry, can work safely alongside humans.

Because they are smaller and simpler to adopt, and because they don’t need isolation along with additional safety criteria, collaborative robots have established themselves as a growing trend, particularly in the supply chain.

They are typically utilized to aid with more common and everyday tasks such as quality testing, part assembly, packaging of goods, and so on.

logistics office

Image source: Pixabay | Maximize Your Efficiency: Top 5 Supply Chain Trends to Adopt in 2023

Cobots provide a variety of benefits, including the ability to enhance productivity, reduce expenses, and even safeguard staff from accidents caused by repeated conduct or dangerous circumstances.

A global food corporation with a manufacturing facility in Brazil, for instance, saw a 67% boost in palletizing product output after adding collaborative robots.

 

4) Investment in technology for data visibility

In a growing digitized and technical world, data visibility is underlined when we consider cybersecurity, which is even one of this year’s concepts, as well as management systems.

The subject must be considered, whether to have a 360° perspective of processes or to provide greater security in the usage of information.

Management systems enable visibility and optimization of the supply chain’s operations by, for example, monitoring and managing full-time orders and items, allowing deficits to be recognized more immediately.

In simple terms, with a set of data, it is feasible to make more informed decisions in order to improve the effectiveness and precision of processes.

Working with data visibility also entails working with transparency, so that everyone in the organization or sector knows what is going on and what reasons are behind every move.

When it comes to cybersecurity, having a clear and complete picture of your cooperation data allows you to monitor it regularly and act quickly if any unusual activity is detected.

Without this visibility, some data could slip outside of the security radar, which is exceedingly risky and creates risk margins.

 

5. Last Mile Delivery and delivery performance improvement

As a result of overly high delivery volumes and driver shortages caused by the COVID-19 epidemic, delivery performance in both B2C and B2B sectors suffered.

A study of home delivery consumer opinion demonstrates this low performance. According to the study, 73% of respondents reported a delivery failure within the three months before the study.

Customers, according to our experts, have gotten less tolerant over time and are penalizing organizations for poor delivery performance.

As an outcome, these businesses will have to concentrate on both their own and third-party delivery features and performance, in addition to real-time tracking options, to ensure that Last Mile Delivery, or the process from product exit from the distribution facility to delivery, is as fulfilling as possible.

 

Count on a successful partner

With 3PL Links, you don’t miss out on business opportunities while also avoiding supply chain issues.

We have technical solutions that will make it simpler than ever to keep your supply chain functioning with ease, allowing you to develop secure partnerships with your customers that will yield positive outcomes, such as exports and sales.

We hope that our article has helped you stay up to date on supply chain trends for 2023. Please contact us if you have any queries or want to learn more about what we do.

Supply Chain Risk Management: Top 5 Supply Chain Risks to Watch Out For

supply chain risk management

Image Source: Lokad | Supply Chain Risk Management: Top 5 Supply Chain Risks to Watch Out For

Any action—or lack thereof—can cause a business to go out of business in this time of bleak future prospects. For instance, more than 41% businesses shut their doors when the coronavirus outbreak began in Canada.

Naturally, each company has its own difficulties and risks because it caters to a particular market. Nonetheless, many institutions struggle with managing supply chain risks.

It is a procedure that involves controlling a network of connected enterprises that may manage anything from the movement of equipment to data and finances, making it incredibly complex and potentially risky.

In order to ensure that your organization can take safeguards, we will discuss the key supply chain risks in this article as well as how to measure supply chain performance.

Read also: How to Innovate Your Supply Chain Management: What You Need to Know

 

What are the main supply chain risks?

There are many risks in the supply chain because it is a complicated operation. Principally, these are:

  • Economic risks
  • Geographic risks
  • Planning risks
  • Competition risks
  • Sustainability risks

Continue reading to learn more about how each of these risks can impact the future of your business.

 

Economic risks

Let’s begin with one of the supply chain hazards that businesses are most aware of and concerned about. Economic risks are the key supply chain concern, and they can be quite harmful due to circumstances that are beyond of your control.

But, that does not imply that you are helpless in the face of this issue. It is feasible to lessen detrimental effects like tax rises, inflation, currency rate changes, and even the bankruptcy of suppliers or customers with a strong working capital reserve.

 

Geographic risks

The risks in this kind of scenario are associated with adversities brought on by climatic elements like storms, floods, or windstorms. In this kind of situation, your business may experience issues with the actual area where it operates, as well as with deliveries and product output.

Of course, it is impossible to totally eliminate this kind of risk. But working with suppliers and consumers in several markets and locales is one approach to try to reduce this risk.

 

Planning risks

Be careful because this risk is one of the easiest for your business to avoid because it merely calls for better action planning.

Your business should refrain from making decisions before it has properly planned in order to reduce the risks in this scenario. Nothing should be done without careful consideration, including selecting a new supplier, making a significant transaction, and releasing a new product.

Market research and supplier approval are two more strategies that can be used. It is possible to demonstrate through homologation that a potential supplier complies with the set compliances so you may feel more secure and confident in the cooperation.

Nowadays, a number of technologies allow for the automation of this procedure. Using it, it is possible to boost public consultations’ confidence and security and the issue of business certifications while preventing mistakes and fraud.

In addition, through an intelligent analysis of shared private information and documents, your company is able to mitigate risks and improve qualification routines.

 

Competition risks

You will have competitors, regardless of the sector your company operates in. How do you address one of the major supply chain risks when there will always be other individuals working on services or goods that are comparable to yours?

Constantly keep an eye on what your rivals are doing and the outcomes they are getting, but don’t try to outdo them; stick to your plan. In aiming to better your management and accomplish your objectives, remember that no one can be the greatest at everything.

supply chain risk management

Image Source: DataRobot | Supply Chain Risk Management: Top 5 Supply Chain Risks to Watch Out For

Sustainability risks

Although they may appear far off, supply chain sustainability risks are actually receiving more and more attention globally.

The moment has come to reassess your approach in order to avoid retaliation from regulatory bodies that could harm your firm, especially if the procedures and materials employed by your company run counter to this notion and do not even attempt to make up for CO2 emissions in the environment.

Environmentally conscious businesses not only benefit the world but also gain better consumer perception and possibly even income. Also, certified procedures can provide carbon credits that you can trade on the global market.

You can promote the following initiatives to promote sustainability in the supply chain:

  • Saving and reusing water
  • Recycling programs
  • Reuse of discarded raw materials
  • Conscientious use of electricity and natural resources
  • Proper disposal of sewage and other waste
  • Implementation of educational projects on the preservation of the environment

 

What is the importance of carrying out a performance measurement in the supply chain?

Due to the complexity of supply chains, failure risks exist and shouldn’t be disregarded. Management’s purpose is to stop this from happening or, at the very least, to lessen the risks that could occur.

It should be used to measure supply chain performance, which also aids in streamlining operations in relation to product transit and inventory management. This assessment helps supplier due diligence procedures in a favorable way by guaranteeing the delivery of differentiated items at a cheaper cost and under predetermined terms.

Additional benefits of effective risk management for your business may include:

  • Guarantee sales
  • Maintain customer satisfaction
  • Meet regulatory and compliance requirements
  • Preserve a good image

Put our advice into practice to observe continual progress in your company’s dynamism and competitiveness now that you are fully aware of supply chain risks and the methods your organization may avoid them.

How to Innovate Your Supply Chain Management: What You Need to Know

Supply Chain Innovation

How to Innovate Your Supply Chain Management: What You Need to Know | Image Source: Axestrack

Organizations must prioritize supply chain management and implement strategies to increase its efficiency if they want to compete in the market.

After all, the days of the sales department being completely in charge of customer happiness are long gone. It is important to realize that a great buying experience also includes high-quality, efficient, and accurate product delivery.

The supply chain is crucial in this regard. This is so that a company’s goals and strategies can be in line with the materials and procedures required for maintaining them. The supply chain does this by integrating logistics with a company’s core business areas.

What is a supply chain and how does it work?

The supply chain, in general, refers to all the processes and routes that a product is submitted to.

Thus, it covers every aspect of a product’s life cycle, from the acquisition of its inputs to its transformation, storage, transport, packaging, sale, and distribution, among other activities.

This method also takes into account the support systems required for these activities, the work associated with them, customer service, marketing, design initiatives, and other related circumstances.

In other words, the organization’s supply chain is a problem in and of itself. The supply chain also includes various businesses and professions, including suppliers, store owners, distributors, producers, transporters, etc.

Check out the next section to learn which elements can be included in this kind of procedure in order to better understand this idea.

What are the elements that make up the supply chain?

Given the variety of products and business strategies, supply chain management is not a static concept.

In every scenario, the same product may pass through numerous other organizations, and it is up to each company to take proactive steps to establish itself as a reliable link in the chain, able to raise the caliber of the product that is supplied to the customer.

As a result, the supply chain can consist of a variety of elements, but often they include:

  • Purchasing strategy coordinated with demand projections;
  • Quote from a manufacturer of a raw material or product;
  • Development or, if appropriate, improvement of the products;
  • Storage or handling
  • Sale and delivery;
  • Exchange or return as needed;
  • Utilize service channels to get input that aids in process correction or improvement.

Why is it important to apply innovation to the supply chain?

Innovation in supply chain management

How to Innovate Your Supply Chain Management: What You Need to Know | Image Source: Rawpixel

The effectiveness of the supply chain is directly impacted by the capacity for innovation. First off, it’s important to remember that this shouldn’t be limited to just the newest digital technology.

Actually, a comprehensive and integrated view of the chain needs to be the main focus. With the use of this methodology, bottlenecks can be identified and remedied.

How to innovate?

Ikea’s packaging design is a well-known example to help with this matter. The company experienced significant problems sending its furniture through postal networks, which led to frequent delays.

In order to address this, a new type of process was devised in which the furniture would now be supplied in flat packs and disassembled, optimizing the use of space and enhancing process agility.

We greatly benefitted from Dygital9‘s assistance to establish a strong technological supply chain front.

Although the use of technology is not a prerequisite for this kind of innovation, they are the ones that steadily increase efficiency and precision in the identification of these kinds of opportunities since they guarantee:

  • Cost savings: through the integration of the POS with the warehouses and process optimization, which enables improved demand adaptation, waste reduction, operational productivity growth, and capital allocation;
  • Results analysis: using more precise and comprehensive indications on techniques for better decision-making;
  • Space optimization: This is made possible by the integration of the supply chain linkages, which more evenly distributes the execution of processes, the analysis of demand, and the control of inventory;
  • Satisfaction of the general public, which now has access to quality services and a large supply of what they need.

Would you be interested in learning more about the supply chain idea and its potential for innovation? Do you wish to learn more about the procedures which will help you improve your chain? Visit our unique article on the subject below:

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