7 Supply Chain Trends to Watch for in 2022
As we recover from the long-lasting effects of COVID-19, many businesses are investing their time and money into long-term strategies to thrive in the new post pandemic world. Here are some supply chain trends to watch out for in 2022.
Advanced Analytics and Automation
Companies are implementing predictive and prescriptive analytics, as well as the integration of algorithms and robotics in their supply chain management to have greater visibility and mitigate disruptions.
2. The Rise of E-commerce
This is one of the most prominent forces affecting our supply chains today. Warehouses are jampacked and hectic as demand continues to increase at an alarming rate, especially with talk of new variants appearing and potential lockdowns. This demand creates many difficult challenges which will encourage organisations to adapt and prioritise accordingly.
Cybersecurity continues to a dominant threat to supply chains globally, especially since almost everything is online and will continue to be. Expect competitors to collaborate with safeguarding networks, devices, people, and programs for better security in all aspects of business.
4. Supply Chain Talent
Traditional approaches to supply chain management are proving to be irrelevant to future supply chain needs. Therefore, organisations are on the look-out for unique supply chain talent. Whether that be hiring new talent with relevant skills such as data analytical skills or reskilling and retaining talent.
5. Focus on Driver Retention
The shortage of lorry drivers is one of the biggest issues that we are still dealing with, especially in the UK. To tackle this driver shortage, companies are investing in driver retention which also includes driver incentives to keep them at companies and attract other lorry drivers. Some companies are paying drivers per drop or delivery as opposed to an hourly rate.
According to a recent study at Yale, retail supply chains are the responsible for over 50% of industry carbon emissions. Whilst it may not be a priority for some companies because of the existing challenges presented by COVID-19, consumer expectations for sustainable delivery and logistics remain high, particularly as climate change worsens. Reducing sustainability doesn’t have to be time consuming and expensive, you can increase sustainability with accurate supply chain tracking tools that reduce loss of goods and waste which in turn will also save money.
7. Localisation of Supply Chains
Consumer behaviour today requires everything to be available and rapid at a reasonable price and this is what keeps customers coming back, particularly when you look at players like Amazon. We all use Amazon because it’s reliable, quick, and very convenient. To fulfil these expectations, supply chains must be shifted to a local level. You may want to consider fulfilling orders from local stores instead of managing shipping on a regional level if possible.
Over the last couple of years there have been many factors that have caused long-lasting problems for many companies in every industry. Companies are realising that traditional approaches to supply chain management and logistics are not effective as they simply do not meet the needs of supply chains today. The good news is that there are tools that can increase supply chain resiliency, visibility, sustainability, and efficiency. Are you considering adopting some of these changes?
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