For the last two years, global supply chain disruptions have been a significant issue for corporate leaders and executives. There has been a shift in the way businesses see supply networks. Global supply chains continue to be disrupted by the proliferation of Covid-19 variations.
Many more efforts must be made in the future by supply chain executives to minimize risk and get things back on track. For companies to succeed, they must understand the upcoming supply chain trends in 2022 that will help them scale their business.
A look at five upcoming supply chain developments and what they mean for company executives is presented in this article. These trends will revolutionize the supply chain’s future, so it is advised that you use them wisely.
1. Resilience is an important quality to develop.
Sea freight issues, labor shortages, and mismatches in demand and supply due to the pandemic and the geopolitical condition of the globe are some of the current difficulties confronting global supply chains.
It was a test that demonstrated to supply chain executives that, despite the importance of being lean, resilience and agility are equally critical for thriving in an unpredictable environment. As a result, supply chain managers are expected to pay more attention to their supply network’s resilience and agility.
Expand your supply chain options
Regarding manufacturing facility sites, and suppliers, supply chain management must broaden its scope. Organizations have been exploring new sources of supply for the previous two years and will continue to do so. Working on new sourcing techniques and decreasing their dependence on low-cost suppliers is essential.
2. Refocus on the long-term viability
Governments and companies will begin refocusing on environmental, social, and corporate governance (ESG) development as the globe exits Covid and extreme climate change continues to endanger the planet.
88% of global supply chain executives, according to Oxford Economics research, have developed or are striving to create a clear sustainability statement. In contrast, just 52% of those polled could translate their words into action.
Survey respondents were also found to lack considerable insight into the sustainable sources of their suppliers, with just 21% reporting complete visibility.
To speed up the digital revolution
Supply chain and logistics digital transformation has been gaining momentum in recent years and will continue to do so in 2022 and the future.
The supply chain industry is investing increasingly in digital solutions like artificial intelligence (AI), automation, and digital twins as digital technologies change the world.
3. Invest in the digital revolution
You may follow these steps to effectively adopt digital technology in your supply chain:
- Identify the goals of digital transformation.
- A digital transformation plan should be developed.
- Decide which technological enablers you want to use.
- Identify and create a capable group of technology leaders.
- Check out our digital transformation plan to learn more about these phases.
Digital dexterity must be tempered with a sense of humanity.
Digital technology must be balanced with an integrated digital culture and well-trained employees to succeed in a supply chain. A person’s digital dexterity may be boosted in one of three ways:
Recognizing your supply chain’s various digital users
Transform the vertical supply chain by adopting a digital perspective.
Workforce reskilling and retraining
Our article has further information about enhancing one’s digital talent.
4. Emphasize cyber safety.
Cybersecurity concerns are increasing as supply chain networks expand and become more digital and collaborative in nature.. In the previous year, 44% of firms had a security breach, according to a report. More than two-thirds of those companies say the third-party company is to blame for the violations.
Supply chain managers may expect an increasing emphasis on cybersecurity in the future.
In order to better prepare supply chain executives for this trend, we’ve identified four strategies to increase cybersecurity:
- Be cautious while beginning a relationship with a new third-party vendor.
- Increase client confidence by patching and upgrading all third-party software regularly. Unauthorized access may be thwarted with the use of multifactor authentication methods.
- There is no way to remove the danger of cyberattacks altogether. This means that spending time and resources to get your squad ready to go on the offensive may pay off. An excellent place to start in this area is via cyberattack training programs.
- Security initiatives should be aimed at enhancing consumer confidence.
5. Disruption in logistics
The whole supply chain is affected when there are problems in logistics. One of the present market’s major trends is the disruption of logistics, which is expected to persist for some time.
Connect the supply chain through the internet
Overcoming the present disturbances in logistics may be accomplished by integrating the logistics network. To illustrate this point, a logistics service provider in the United States has developed a platform called Rydershare that facilitates network collaboration.
Crowdsourcing for the final delivery
When it comes to last-mile deliveries, combining crowdsourcing and your own fleet may help streamline logistics. Nonetheless, it is vital to remember that crowdsourcing is not always as trustworthy as your fleet. Because of this, it is critical to conduct frequent background checks on new hires. Additionally, Uber conducts background checks on its drivers.
AI may be used to improve logistics.
Logistics planning is one area where artificial intelligence may have a significant impact on logistics operations. Learn more about how AI is being used in the logistics industry by reading our thorough article.
Ultimately, it is all about moving towards the system that is about to arrive. Keeeping an eye on these Supply Chain Solutions is a sure-shot way to succeed as a business.
The future belongs to those companies who understand the trend and take the necessary precautions or make advancements that will help with the progress. Every business must understand the change in the business market and focus its efforts on adapting to the market.
For a business to succeed, every corporation must try out things that have never been done before. Whether it is a new trend or something, the customer will gladly pay for it. The goal should be to ease the customer in the supply chain department.