In 2023, supply chains must anticipate disruptions and have processes to manage them
The disruption of the last two and a half years has demonstrated that traditional and historic supply chain processes are insufficient. Companies have increasingly discovered that their current practices were unable to keep up with the constantly changing environment and new challenges. Supply chains have been impacted by numerous other chaotic disruptions in recent years, including the Suez Canal blockage, riots and unrest in parts of South Africa and issues at the Port of Durban, the COVID-induced container shipping crisis, and the power crisis across Asia and Europe.
2022 was another interesting and challenging year for supply chain professionals as they continued to deal with the world’s disruption and volatility. We all watched in horror as floods and droughts devastated South Africa, just as we thought our supply chains could not be stretched any further. Business continuity has been difficult, and cracks are appearing in the armour of resilience.
To mitigate risks and succeed in today’s challenging and constantly changing environment, businesses must do things differently. Forward-thinking supply chains are required so that businesses, communities, and economies can withstand future disruptions and volatility. The most important supply chain trends emerging in 2023 will be geared toward future-proofing supply chains, so that they are prepared to anticipate and manage disruptions.
The following topics will be at the top of the agendas of organizations looking to future-proof their supply chains: supply chain resilience, flexibility, agility, and transparency; human resources, training, and education; digital transformation; sustainability and the circular supply chain; entrepreneurship and innovation. Businesses must understand how to apply and develop all strategies and techniques in an environment where constant change is the norm and disruptive events must be managed.
Supply chain flexibility, agility and resilience
In a world where supply chain disruption is now the norm, regular planning, strong risk management processes, and budgeting are more important than ever. The challenge for businesses is to balance cost and customer satisfaction. Inflation is another source of disruption, requiring cost reduction to be a top priority.
Human resources, training and education
There has been a shift in leadership consciousness in HR, and new skills are required. The new normal leadership style necessitates a shift from a “it’s about me” mindset to a “it’s about us” mindset. Because supply chain management is a constantly changing and evolving profession, all supply chain professionals must keep updating their skill sets and knowledge, as well as honing their expertise.
Those interested in a career in supply chain management will find that there is more demand for supply chain professionals today than ever before. However, there is a greater emphasis than ever on appropriate supply chain qualifications and ongoing skill development.
Digital transformation driving transparency
Supply chain digitalisation aims to use digital technologies to make supply chains more connected, transparent, resilient, flexible, efficient, and cost-effective than ever before. That is the goal; however, there are a variety of reasons why many businesses fail to realize true value from their digital transformation initiatives. Businesses must reconsider these.
Sustainability and the circular supply chain
As environmental pressures continue to rise in the face of the obvious effects of climate change, an increasing number of businesses are making sustainability a top priority. Beyond simply being the right thing to do, customers, shareholders, and employees all expect sustainable supply chains. Many organizations’ stakeholders not only value but also demand environmental consciousness.
Innovation and entrepreneurship
The economic challenges posed by the pandemic, Ukraine’s war, and natural disasters have had a knock-on effect on already stressed global supply chains. Governments all over the world are attempting to spur economic growth and job creation, and the supply chain plays a role in this.
Resilient, effective and efficient supply chains have the potential not only to transport goods from point A to point B, but also to save lives, protect the environment, and grow economies. The rise of supply chain management has the potential to help combat South Africa’s dire youth unemployment crisis while also addressing a growing supply chain skills shortage across many industries.
Along with the overarching goal of future-proofing supply chains, some specific supply chain trends are emerging from a disruptive world. These include investing in supply chain agility, improving supply chain forecasting, and investing in analytics. These cannot be ignored by businesses.