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.

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.