Moore has been an active partner of ASCM for many years. Together with Supply Chain managers worldwide, every year we eagerly await the update of the top 10 Supply Chain trends. They are an important source of inspiration and they provide valuable guidance, especially in these challenging times. Let’s take a look.
Supply Chains are going digital (if they haven’t already)
Anyone who’s been working in the Supply Chain sector for a while knows that our profession is ideally suited to data- and computer-driven applications. Supply Chain management is no longer just about the art of moving goods smoothly through the value chain. Today’s logistics only run smoothly when data flows are also running smoothly.
More than that, analysis shows that we are increasingly using data to actively manage, not just follow up. More and more Supply Chain leaders are working with the available data to optimize the wider network. So data and digital technology are essentially the nutrients for new Supply Chain ecosystems, so to speak.
This ever-increasing digitalization can be clearly seen in the top 10, with big data at No. 1, AI at No. 4, robotics at No. 5, and cybersecurity at No. 6. That’s no less than four digital developments in the top 10.
Risk management is key
Supply Chains have become complex, highly interconnected networks. If one link is exposed to risk, it can impact the entire network. With the pandemic still fresh in their minds, companies are doing their utmost to create resilient Supply Chains.
This is also reflected in the top 10 Supply Chain trends. Besides Supply Chain resilience at No. 3, the focus on securing the ‘essential goods Supply Chain’comes in at No. 8.
And it’s not just companies, governments are also intervening and taking more and more measures to improve security of supply in a number of crucial sectors. Just think of electronic chips and medical products. Additionally, increased geopolitical tensions have forced governments to make a number of significant decisions — such as the reshoring of crucial products — that companies are already responding to.
Breakthrough of green and circular Supply Chains
There’s no getting around it: citizens and businesses are increasingly affected by the consequences of climate change, and governments are working to curb greenhouse gas emissions. This means companies are becoming less dependent on imported fossil fuels and are reducing waste. Unsurprisingly, this increasing focus on sustainability features prominently in the top 10, with circular Supply Chains landing at No. 7.
Increasing sustainability and reducing carbon footprints also challenges logistics flows. This too is expected to encourage companies to reorganize their activities to be more in line with the market. Industry 4.0 could be a way to efficiently address labor shortages in local markets, Which brings us back to the increasing importance of digitalization, demonstrating that many of the trends are mutually reinforcing.
Want to learn more about ASCM’s top 10 trends for 2023?
Then be sure to contact one of our experts.