As 2023 starts, supply chain CEOs are focused on making resiliency and efficiency the key components of their agenda in the new year. Globally, companies have made changes throughout the many supply chain networks in order to overcome the upheaval of the previous two years. They must try to foresee future problems coupled with potential demand and create a supply chain to last.
The key to streamlining the future of the supply chain is to learn from the past. Below are a few things that have caused problems coupled with new solutions.
Since 2020, supply chain demand has been like the waves of the ocean and just as unpredictable. Snarled supply chains left consumers and retailers staring at empty shelves throughout much of 2021. By 2022, suppliers were struggling to provide lead times and shorten distances.
Many supply chains started to offer peak season savings to encourage consumers to make early purchases. Inflation has fueled moderation in demand which has caused many to find themselves struggling with an overabundance of inventory. Currently, many are trying to find smart ways to create resilience to maintain cost control over inventory.
A reduction in supply chains occurred in October when it reached the lowest level in two years in the ports. In November of 2022, the container ship queue in the ports of Long Beach and Los Angeles plummeted to zero. It was the first time such an occurrence had taken place since October 2020. The drop was significant in comparison to January 2022 when 109 container vessels clogged the ports.
The Changing Landscape of Talent Acquisition
Talent acquisition has changed in the last two years. In 202, most companies struggled to reskill their existing labor force but in 2022 the majority of companies opted to outside hire. Labor mobility has become widespread following the lifting of all COVID-19 restrictions.
Friendshoring Becoming the New Norm
Friendshoring has become commonplace with countries working together to create an impressive global economy. Global sustainability has become a necessity whether for improvement and focuses on local goods coupled with less reliance on global trade.
Supply Chain Restructuring to Achieve Greater Sustainability
Companies have started to restructure their supply networks through the use of well-thought-out and planned strategies that focus on moving critical material both through regional networks and globally. They are refocusing from visibility toward even greater improvements within the demand and supply. Supply chain digitization has truly entered a new phase.
Over 70% of supply chains revise policies focused on inventory. They invested in digital services coupled with demand planning which has been a top-tier priority for many supply chain leaders. Many are also prioritizing inventory optimization. Virtually all supply chains are investing in modern technologies. Which are assisting with improvements in all aspects of the supply chain such as equipment, weather disruptions, and labor shortages.
In 2023 disruptions will continue but not to the extent they have in the past. Supply chains are becoming more agile and capable of coping with what lies ahead which achieves greater stability and helps to lower costs. Those who will growl and succeed will be the ones that embrace sustainability.