Volatility remains the watchword for supply chain operations in 2023. Amid inflation, uncertain consumer demand, labour shortages, disrupted logistics and extreme weather, supply chain managers are restructuring operations and reinforcing digital controls to add flexibility and manage risk, while holding down costs. As they do, trends on the 2023 supply chain horizon range from rethinking supplier relationships to rerouting goods to revising digital strategies.
14 Supply Chain Trends to Know in 2023
The Covid-19 pandemic prompted supply chain bottlenecks, raw material and components shortages, rising freight costs, and infrastructure issues across the Asia Pacific (APAC) region, according to business consulting firm KPMG(opens in a new tab). These disruptions have continued over the past few years, and an S&P Global survey of supply chain professionals concluded that 2022 was “a tumultuous year in review, with no end in sight.”
The outlines of a stronger supply chain model — one that can withstand volatility as a permanent condition — have begun to emerge, and the coming year will see supply chain leaders fill in this framework. Some lists of trends that will be in or out of favour in this pivotal year place globalisation and just-in-time operations in the “out” column, while others are not so fast to completely dismiss these long-standing practices. Still, trends filling up the “in” column overwhelmingly favour agility over running lean operations — though certainly not at all costs.
Clearly, volatility has raised the bar on monitoring, analysing and rebalancing opportunities and risks across the entire supply chain. What else can be expected? Read on for 14 trends for 2023.