Top 10 Supply Chain Trends for 2023

Industries across the globe continue to grapple with supply chain disruptions. They're working to optimize execution, reduce risk, increase agility, and identify ways to gain real competitive advantage. To achieve these goals, data-driven networks, the latest digital transformation capabilities, prioritization of risk management and resilience, streamlined logistics, and more must be created to enable supply chains to proactively shape a successful, sustainable future. Take a look at what will happen in 2023.

Big data and analytics

Big data analytics and automation enable businesses to mitigate the disruption caused by disruption through digital, flexible supply chain management. The implementation of predictive and prescriptive analytics, along with advances in big data, algorithms, and robotics, will have broader implications. With the power of these solutions, businesses will benefit more from broader visualization, synchronized planning and execution, and data-driven decision-making.

Digital supply chains

Digital supply chains will continue to be an important element of many of the trends on this list, including risk, resilience and security. The success of supply chain digitalization requires the realization of large-scale sensors through the Internet of Things; digital twins; shared internal and external interfaces; such as cloud-based networks; and process automation and verification. Best-in-class organizations will adopt digital supply chain capabilities or be left behind by more nimble and efficient competitors.

Supply chain risk and resilience

Supply chain risk management and resilience require collaboration across highly complex and interconnected global networks. Key strategies include diversification of suppliers, diversification of production capabilities and shipping processes, and the search for alternative materials and non-traditional partnerships. Many supply chains will become more compact and localized. A resilient supply chain is designed to respond to disruptions faster than competitors, provide superior customer service, and create value and capture greater market share.

Artificial intelligence and machine learning

Artificial intelligence and machine learning are key components of many of the trends on this list and are becoming drivers for maximizing and enabling systems.

They are the foundation for integrating people, processes and systems across a broad operating environment.

The technology-driven development of Industry 5.0—which involves greater collaboration and partnerships between humans and robots—will have a major impact on many more supply chain functions.

Robotics

Labor shortages, supply disruptions and surges in demand are forcing organizations to take advantage of robotics – and thus, intelligent robots are transforming supply chains. Driven by rapid technological progress, both mobile and stationary robots will carry more loads, helping workers complete warehousing, transportation and last-mile delivery tasks. Although the initial cost of robotic technology is high, the warehouse will eventually provide safer and more efficient services with less manpower and operating costs.

Data security and cybersecurity

The more digital supply chains there are, the more vulnerable their global networks are to attacks. This interconnectedness means that supply chain partners can inadvertently expose each other and their customers to privacy breaches, identity theft and worse. Expect closer collaboration when securing networks, devices, people, and processes. Additionally, more organizations will choose to invest in replacement appliances, firewalls, advanced anti-hacking techniques and employee training.

Circular and sustainable supply chains

The traditional "take, make, throw away" linear business model is an economic dead end for the planet: raising the cost of raw materials and increasing the likelihood of shortages and volatility. At the same time, many conflicts and wars also revolve around the acquisition of rare minerals, energy and commodities. As supply chains touch every part of our global ecosystem, prioritizing a responsible, resilient and regenerative circular economy is especially important and necessary.

Essential goods supply chains

Supply chain managers must provide support products for producers of essential goods; donate surplus to humanitarian organizations; and help retailers, governments and NGOs connect suppliers with those who can. In addition, the demand for temperature control will continue to grow for the transportation of goods. Innovative cold chain packaging and optimized infrastructure have created new challenges for picking, packaging and transportation.

Smart logistics and the internet of things

Insight and agility are proving to be key competitive advantages in supply chains. IoT provides near-real-time see-through visualization and information about product location, speed of movement, estimated time of arrival, and local weather conditions. This is the basis of smart logistics as it anticipates delays, disruptions and potential quality risks. This insight will enable organizations to reduce costs, improve service levels and optimize networks.

Logistics vulnerability

A transportation planning system (TPS) relies on supply chain stakeholders to collaborate in an integrated and flexible manner. This enables them to dynamically adjust their various transmission modes based on near real-time information. The benefits include increased visibility, integration and flexibility. Logistics organizations must create the necessary conditions for seamless interaction between multiple transport networks and their digital counterparts. They should also rethink the physical connections between warehouses, highways, ports, waterways and air transport.