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2023 Supply Chain Trends To Be Aware Of
Technological advancement has impacted businesses in almost every industry. Managers had to wrap their heads around the new technologies to ensure they can keep up with the market. And those who refused or were unable to keep up are now facing major setbacks.
If you are a supply chain manager or a business owner looking to stay abreast of all the latest trends in the supply chain, you’ve landed on the right page. This blog will cover all the latest trends in the supply chain in 2023 to help you understand what direction you should take for your business.
Latest Supply Chain Trends in 2023
Artificial Intelligence (AI)
Artificial intelligence is the buzzword in the supply chain. According to Markets And Markets research, AI for manufacturing is expected to grow from $1.1 billion in 2020 to $16.7 billion by 2026. These numbers are astonishing, considering the projections are calculated based on a 6-year period only. AI helps businesses in the supply chain in the following ways:
- It improves demand forecasting
- It enhances productivity across all departments
- It optimizes capabilities to support accurate capacity planning
- It helps reduce supply chain costs
- It increases output
- It promotes safer working conditions.
So if you are still hesitating about whether AI would be the right addition to your supply chain, leave all the questions behind and take steps towards a better, more organized supply chain process.
Sustainability refers to achieving goals without affecting the capacity of coming generations to achieve their goals. In simple words, it's about enjoying the benefits nature has to offer without exploiting it aggressively. Sustainability is becoming common in all industries, including the supply chain. Here’s how you can ensure sustainability in your supply chain:
- Switch to alternative energy sources as much as you can. These include using hybrid or electric vehicles for logistics.
- Find out if there are ways to make your packaging more environmentally friendly. This also includes eliminating any cheap labour that may have been used to produce the packaging.
- Determine the least sustainable processes in your supply chain and find ways to substitute them with processes that are less damaging to the environment and workers.
As much as you want to put all your orders in the same basket and simplify order processing for yourself, customization will always be there. Clients will always have special requests, and if you decide not to fulfill them, you risk losing business. You should always leave room for customization in your supply chain if you want to diversify your client base and increase your profits.
Product customization can be difficult when you have a large volume of customized orders. However, there are indirect ways to make product customization easier. For instance, by using custom software for order processing all your orders will be processed automatically so you can devote more time to working on requests for customized products.
The supply chain is the most vulnerable to disruptions. Political events, pandemics and weather conditions are the three most common factors that can cause instabilities in the supply chain. And while preventing unpredictable situations is almost impossible, it is the job of a supply chain manager to reduce the impact of such situations on the supply chain to ensure that the process is steady even in tumultuous times. You should always have a plan B in case of a disruption in the supply chain to keep your business functioning and ensure your clients get their orders on time.
While digitization is known as a process of putting all business-related information into a digital format, it can also be defined more broadly as a process of turning your business into one integrated system where all the processes are automated and consolidated between each other. Digitization has proven to streamline operations and improve a business’s bottom line.
While digitizing your business is a challenging process, you need to remember that going digital-less at all will be more detrimental to your business than anything else. Do your research to find the right technology to integrate into your business. Make sure that the custom software you chose fits the needs of your business just right.
How Can Custom Software Make Supply Chain Management Easier?
Supply chain management is no easy task. It requires a good understanding of the processes as well as the ability to adapt to constant changes in the market. Having proper systems at your disposal, like project management or operations management software, can help you keep track of the entire supply chain. Vestra Inet can help you with all your supply chain management needs. With over two decades of experience serving clients in the distribution, manufacturing and metalworking industries, we know how to build the right custom software for your business.