2 February 2023 Discover the new trends in supply chain management this year and how they help your company grow. Supply chains underwent significant changes in 2020 and 2021 due to the COVID-19 pandemic, and its effects have impacted countries and companies worldwide. Over the past two years, Supply Chain managers have faced various challenges and needed, more than ever, to invest in advanced technologies and strategies to address all ongoing transformations. Given the need to avoid physical contact, digital sales have gained even more strength. Many companies have invested in omnichannel to offer a differentiated experience to their customers, leading to a new way of consuming. Today, customers desire speed, convenience, and a unified shopping experience. Those who have not yet paid attention to these topics and supported them in their companies risk falling behind. Therefore, 2023 opens up a new scenario. For this year, experts believe that focusing on better strategic planning of supply chains is essential for companies that want to increase their reach, recognition, and revenue in the coming years. After two years of living in a pandemic world, it’s time to evaluate the trends imposed to follow the new market model and apply them according to your Supply Chain. Trends for Supply Chain Management in 2023 Take a look at the main trends below and discover what your supply chain management team needs to know in 2023: 1. End-to-end chain visibility In the past two years, and as a result of the Covid-19 crisis, many distribution centers had to adapt to the new market and consumption model. It was not news to any manager that many distribution centers were not adequately prepared for the current economic climate, so supply chains, for the most part, lacked technological levels, well-structured processes, and an emergency plan that would make them as resilient as they should be. Consequently, a Supply Chain trend that has strengthened is the need for full supply chain visibility, in other words, it is essential to follow the path from receipt to delivery. This allows for clarity in storage processes, order processing, and shipping, as well as early identification of potential issues. By gaining visibility in supply chains as an ally in strategic distribution center planning, it is possible to avoid some problems that affect your company’s performance, such as: Unnecessary stock levels, with excess items that can lead to losses and damage. Product unavailability. Lack of real-time notifications to prevent issues with goods, especially those delayed or returned. Competitive disadvantage in the market. Chain visibility, in fact, is a Supply Chain trend that is establishing itself every year and, in a highly competitive scenario, becomes essential. After all, it is crucial to have an end-to-end view of processes to ensure maximum efficiency, avoid costs, and offer the best customer service. 2. Use of advanced management systems, such as WMS, YMS, TMS, and OMS The future is technological, and this involves always adapting your operations to the best digital strategies available on the market. Information visibility and better supply chain tracking can be achieved through advanced software that allows the integration of all warehouse processes. And the application of these technologies represents a supply chain trend for 2023. Today, there are specific solutions for every need: the WMS (Warehouse Management System) handles warehouse management, helping with inventory control, material flow, labor management, and performance analysis; YMS (Yard Management System) takes care of yard management, meaning the software supports delivery scheduling and control, centralizes communication with suppliers, organizes work shifts at reception, and ensures safety in the truck flow in the yard; TMS (Transportation Management System) manages transportation, handling all related operations and controlling information; and OMS (Order Management System) refers to order management, assisting in the end-to-end management of all requests, offering a centralized view and real-time data. 3. Automation of key processes The larger a warehouse is, the more advanced the strategies for organization, smooth operation, and product distribution must be. Therefore, increasingly large players are investing in innovations that ensure the optimization of time and operational resources and logistical efficiency. To achieve satisfactory levels of productivity and quality, one of the main trends in Supply Chain management, besides the implementation of advanced management software, is the automation of key processes. This year, a strong increase in the implementation and investment in automated equipment for warehouses is expected, such as robotic systems that assist in order preparation, technologies for shipment classification, automated vehicles, and even drones for deliveries, already used by companies like Amazon, for instance. The implementation of technologies that automate key processes brings a series of advantages, such as: continuous operations, cost and labor reduction, accurate knowledge and information about inventory, better use of warehouse space, reduction of product losses and damage in the warehouse, elimination of human errors, agility and precision in goods delivery processes, among others. 4. Supplier diversification The company is an asset, and just like in the financial world, it is subject to imminent risks. Imagine an intermediary investor. It is advisable, when managing your investment division, not to focus solely on one mode: having a diversified portfolio among fixed income, funds, and stocks, for example, is the smartest way to ensure profitability. We call this “not putting all your eggs in one basket,” and this strategy should also be applied in the daily life of Supply Chain companies. Suppliers are the backbone of a distribution center. Therefore, it is necessary to foresee a possible plan B and even C, in case of unforeseen events related to the received goods. For example, if you are predictable and understand that in December your stock needs more white blouses, make sure they are sent by different suppliers and ensure the product is always available in the warehouse. This was one of the legacies left by the pandemic, where the closure of borders and road and air traffic restrictions damaged the actions of many companies worldwide. Therefore, when talking about Supply Chain management trends for 2023, supplier diversification appears as a crucial strategy. Moreover, it is very important to ensure a good relationship with them. 5. Reduction of warehousing expenses A technique widely used by e-commerce that has also caught the attention of companies working with physical sales is cross-docking, a system where the goods received at the distribution center are immediately sent to the final customer, meaning this rapid product redistribution process allows for lean and synthetic warehouses, which consequently do not rely on large structures. In practice, this means a reduction in storage costs. Although this procedure offers reduced costs, better stock rotation, and minimal risk of product damage, attention must be paid to some points that need to be analyzed before its implementation: – Hiring more couriers, as it is necessary to ship the goods immediately. – Greater accuracy, planning, and visibility for managers to create complex shipping plans and efficient shipments. – Investment in excellent inventory management software (WMS) to increase unloading speed, digitize documents, classify and ship products, monitoring the entire process so that no item is left on the dock. 6. Encouraging cooperation among teams To ensure efficiency in the supply chain, it is important to encourage work and integration among teams, as well as to conduct integration with professionals from all departments of the process. A team that understands the flow from start to finish and recognizes its importance offers better performance for the company. Additionally, offering training and bonuses is a great way to keep professionals engaged and highly productive. 7. Focus on sustainability It is not new that sustainability is a topic for companies. Consumers are increasingly concerned about consuming brands that show concern for the future of the environment. According to a survey by the Economist Intelligence Unit (EIU), the search for sustainable products on the internet has increased by 71% in the last five years. And it could not reflect differently on the supply chain, which is under the consumers’ scrutiny in their practices. If your company has not yet started thinking about sustainable environmental practices, this is a great time to review the small changes that can be made in the warehouse, such as: – Implementation of automated software that ensures the best use of CD resources, avoids waste, and reduces paper usage. – Regular maintenance, avoiding any internal failure that could trigger an environmental tragedy. – Reuse of waste and materials. If your warehouse is not already recycling and reusing, start now. – Reuse of rainwater for internal processes. Besides being beneficial for nature, it represents up to 40% of monthly consumption. – Optimization of packaging, avoiding waste and adapting it to each order. Just like visibility, sustainability is one of the Supply Chain trends that has gained ground in previous years and is now gaining even more relevance. Prioritizing sustainable strategies is, besides being a responsible action, an effective way to reduce costs. Which of these strategies have you already applied in your warehouse? Now that you know some supply chain trends, it’s time to apply them to your warehouse. In summary, we can say that in 2023 consumers expect even more quality and agility in delivery, along with competitive prices and showing greater interest in sustainability. The new behavior will continue to require changes in all processes of distribution centers, promoting a significant transformation in all warehouse processes. If you want to start the year seeking greater competitiveness in the market, optimizing flows, and pursuing efficiency, apply the shared tips here and go further by examining in detail all processes and forms of improvement. Technology is a great ally and can help you take a big step towards the future. If you want to achieve concrete results, positioning your company among market leaders, prioritize the available innovations. The market is already digital. Now it’s time for your company to be too! Supply Chain Management: 7 Trends for 2023 Deagor WMS per ecommerce può aiutarti!