Unpacking the key supply chain trends impacting marketers in 2023

2. Carrier rates will decrease

During the pandemic, consumer spending increased and capacities decreased. This led to carriers increasing rates for transportation while their service standards decreased due to labour shortages, global lockdowns and backlogs. This demand has decreased, so capacities have normalised and backlogs have lessened. Because of this, carriers are likely to decrease their transportation rates and improve on their service standards. Businesses now have an opportunity to become competitive within their field again and build customer loyalty through better service delivery.

3. Businesses will start reducing their stocks

Before the pandemic, businesses tended to practice lean inventory management. This is a smart tactic, but it backfired when the global lockdowns were implemented. Because of this, organisations along supply chains did not have stock for long periods, which negatively affected businesses. Once lockdowns were eased, companies increased their stocks to prepare for possible additional lockdowns. But since the pandemic seems to be in its end stages, businesses are likely to go back to lean inventory management.

4. Digitisation will remain a priority

Digitisation decreases the need for paperwork and allows supply chain managers to increase visibility across supply chains, enabling them to track materials and goods throughout the process.

5. Wars will affect supply chains

Geopolitics will always affect supply chains. One such example is the Russian-Ukrainian war, which has negatively impacted supply chains across the globe. Another geopolitical event that could disturb supply chains is worsening trade relations between China and the United States.

6. Cyber security will be prioritised

Software supply chain attacks continue to grow and are becoming more sophisticated. Cyber hackers could attack a supply chain to access its data and use it for financial gain or to steal confidential customer information. Businesses within supply chains, and many other industries, will focus on assessing their business for risks and improving their protection against such attacks.

7. Sustainability

Businesses across supply chains will strive to reduce their carbon footprint because of customer demands and stricter government regulations. Ways to do this include finding sustainable raw materials and using circular supply chains. The latter refurbish used products to sell back to consumers.

The Bottom Line

“No matter what trend is being implemented, following new trends can be risky and difficult. Businesses should evaluate the specific trends they would like to make use of, ensuring that the actions taken would be beneficial to the business,” the IMM Graduate School concludes.

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