Over the past few years, supply chains have transformed. Last year, everyone was focused on the effects of global shortages on consumer access to products. The invasion of Ukraine by Russia almost immediately made inflation and recession the top priority, with apparent spillover effects on financial supply chain management and strategies. In addition, the business still needs more skilled workers for a number of important professions.
However, despite some sad headlines about 2022, there are reasons to be hopeful, and there are opportunities. The responsibility of the supply chain expert is evolving at this time, with an increased emphasis on decision-making and the advancement of sustainability objectives.
We at Skyscend have always worked with leaders and practitioners in supply chain management to give them the proper solutions for achieving breakthrough performance. In order to assist supply chain managers and experts in creating a strategic roadmap for 2023 and beyond, we have selected 7 Critical Supply Management Trends.
1. The planning process will take sustainability into account at each level
Increased sustainability and greater awareness of KPIs are changing how planners use data to inform their decisions. Businesses will incorporate sustainability into each step of the supply chain in the coming year, including sourcing energy, production, storage, distribution, and disposal of goods.
2. Integrating flexible contracts
Integrating flexible contracts Organizations can manage costs more effectively while maintaining high-performance levels by incorporating flexible contract systems into their supply chains. For instance, businesses may decide to renegotiate amounts of high-pricing deals with suppliers or pick shorter periods to have greater sourcing flexibility.
3. The language of the CFO will need to be adopted by supply chain specialists.
Supply chain managers should take advantage of the chance to appropriately interact with the C-suite as the relationship between agility in supply chains and overall business performance becomes increasingly obvious. To persuade the board to approve additional supply chain investments, they need to put what they do into the chief financial officer's (CFO's) language and articulate the value established for the entire business.
4. To deliver a measurable ROI, resilience will be necessary.
In supply chains, resilience is more than just a buzzword; it's a strategic necessity. Businesses will need to routinely fatigue test their supply chains to ensure they are resilient enough to manage whatever is tossed at them because disruption and volatility are expected to persist through 2023. This will not only lessen the effects of the impending disruptions that are imminent, but it will also enable supply chain management to make more assured decisions faster, boosting ROI.
5. Automation of the Supply Chains
In various industries, we are already utilizing automation and artificial intelligence. Automation, which involves a machine performing a series of chores, has existed for a while. Technology is used in automation to eliminate the requirement for human input. However, automation lacks brains. Therefore the gear can only complete the duties that were programmed into it.
There are many methods to incorporate automation solutions into the processes at your business. For example, consider using Automation solutions for inventory management as part of supply chain management processes. In the future, automated supply chain management may be made possible by AI.
6. Supply chain shifts will happen more quickly than ever before
Supply networks must adapt and alter more quickly as consumer demands increase. With automated supply chain planning, organizations can break down organizational boundaries and keep up with a world that is changing quickly. As a result, innovative technology will continue to speed up supply chain transformation activities.
7. Enhancing Supply Chain Analytics
Enhancing Supply Chain Analytics Organizations can improve the insight of their supply chains for better business choices based on real-time data by utilizing data-driven insights. This could range from monitoring important metrics like inventory costs and transportation time to predicting the effects of outside variables like new market laws or supply chain interruptions on operations.
Businesses can significantly increase their competitive advantage in today's fast-paced business environment by using the proper analytics tools and tactics.
Conclusion
Technology integration will be crucial for supply chain success in the future, which is why many companies are digitizing their operational procedures. Whether you follow supply chain trends for the future or not, simply executing these recommendations will put you ahead of the pack in 2023. To find out more about how Skyscend can support your company's success in the coming years, contact us right now.