5 April 2023

The 3 Pillars That Will Set Trends in the Supply Chain in 2023

5 April 2023

It is not news that the events of the past two years, triggered by the Covid-19 pandemic, have interfered with countless business models, logistical strategies, and market segments. Many companies have undergone significant changes in their structure, team, and even in how they relate to their customers. We can say that the retail sector was the one that suffered the most impacts, as the pandemic, as well as social isolation, have transformed consumer habits, experiences, and purchasing methods.

The search for the best way to sell online, in addition to finding ways to connect physical and digital channels, was one of the solutions found by retailers to reinvent and keep up with the new market. Over time, as the months passed, the adherence to the new form of consumption began to be observed: on one side, increasingly demanding customers discovering new acquisition possibilities, and on the other, companies concerned with following trends and surviving the period of uncertainties and challenges.

Today, there are still questions about the direction the consumer market will take and how supply chains should act in the face of the new reality. All the attention of logistics managers is focused on experts trying to outline models and predict what can be expected from the market in 2023.

But is it possible to predict the paths they will follow from now on? The answer is yes. Unless unforeseen events occur that could suddenly change the way we consume, there are ways to identify investment opportunities this year. In this article, we will share with you, the logistics manager, what the trends in the world are and what the main supply chain trends in 2023 are.

Why should I follow Supply Chain trends?

Before knowing what the main Supply Chain trends are, we must understand the importance of considering these changes and how they can bring benefits and profitability to your supply chain.

Knowing what changes are expected for your market and global logistics as a whole allows you to stay updated with the latest strategies and technologies. If the eyes of major companies, both national and international, are focused on evolution, it is necessary to stay active, think smartly, and apply new developments according to your needs. Analyzing what your competition thinks and practices helps you increase your performance, development, and, of course, remain competitive in the market.

One thing is certain: through the innovations that will drive the new scenario in 2023, companies that choose to follow traditional standards may risk their profitability and lose their market space. Therefore, the time to evolve is now! Check out the following 3 pillars that represent global trends in the supply chain and learn how to put them into practice this year.

Main Supply Chain trends in 2023

Agility and Predictability

One of the main characteristics that the new market brings to the Supply Chain is the total visibility of the work structure and the movement of the flow of goods, from the moment they are received in the warehouse, through control, storage, order separation, packaging, to delivery to the final recipient and their evaluation of the purchase experience. In other words, it is nothing more than real-time monitoring of the entire life cycle of a given product, from its origin to the final consumer.

With the pandemic, we have learned that the lack of predictability and agility in operations can influence inventory planning, which, in turn, does not accurately meet the market demand, either due to a lack of products or an excess of obsolete items. This means that when there is no monitoring of the flow of goods, a gap in predictability is created, influencing strategic decisions. Hence the need to seek greater visibility.

In practice, there are several forms and technological resources capable of making processes more agile and predictable. Among these, we highlight two main Supply Chain trends:

Big Data and Artificial Intelligence

The Big Data system collects, organizes, and shares data with artificial intelligence to transform them into practical strategic information. If applied to the Supply Chain, they help logistics managers find the best solutions for inventory management, operational organization, cost and waste reduction, as well as time optimization and the application of solutions that make the workflow faster.

Blockchain Technology

Have you ever thought about increasing the security of your business data? Because that is the main goal of Blockchain technology. The technology aims to decentralize information as a security measure. Through its use in the Supply Chain, it is possible to achieve complete traceability of a product, from its origin to its destination.

Blockchain offers a secure space to record data on the network in real-time, preventing fraud and cyber-attacks, increasing data transparency, and allowing for error predictability, which can delay the entire internal work process.

Internet of Things

Another practical way to ensure agility and predictability of processes is to invest in the Internet of Things, or IoT. Although little known, some companies are already investing in this trend. It consists of interconnecting all processes of the Supply Chain, from receipt to the consumer. This means that any opportunity identified during the workflow will be quickly identified, and in this way, managers can make the best decisions for business growth. It is worth noting that a more efficient supply chain generates increasingly demanding consumers, who expect to receive their orders without errors and more quickly, improving their consumption experience, the next trend we will see.

Customer Experience

It is impossible to talk about market change without mentioning consumers. The general context of recent years has transformed the entire behavioral and cultural way of people. With the pandemic, many who had never shopped online began to regularly use e-commerce. A good part of the population also started working from home, becoming even more active in the digital universe.

A survey conducted by DemandTec, in collaboration with EnsembleIQ, identified some standard characteristics and new consumer needs after the pandemic. One of these will be adherence to online shopping: 22% of consumers will continue to opt for e-commerce. Another point revealed by the research was the greater criticism in the decision-making process, including prices, delivery times, and the best experiences offered by companies.

To meet customer demand, companies must consider a series of practices to gain market relevance. Some of the opportunities that can contribute to enhancing the customer experience and improving your Supply Chain results are:

Invest in Omnichannel

Even though buying online may seem simple, today there are sophisticated and strategic solutions to offer better conditions to the customer. Shipping, for example, has long been seen as a decisive point for online purchases, leading to purchase abandonment. Today, companies can rely on robust management systems such as WMS and OMS, which integrate all communication and sales channels into the same operating system, creating better purchasing possibilities for their end consumers and reducing costs.

An example is hybrid purchasing, where a specific order can be made online and picked up in physical stores, just as orders made in physical stores can be scheduled and shipped later. To achieve this, having integrated management systems ensures that inventory and delivery systems work correctly and provide excellent customer experience and satisfaction.

Same-Day Delivery

Same-day delivery is another important supply chain trend that can significantly enhance the experience with your consumer and bring great benefits to your business. After all, who hasn’t suffered when placing an online order and waiting days for its arrival? Famous brands worldwide invest heavily in optimizations that improve delivery times, including receiving orders on the same day.

It is essential, to meet this demand, to invest in specialized software, as it is necessary to prioritize the speed of information processing and calculate it very effectively and accurately. Today, the logistics technology market has the OMS system, capable of tracking in real-time all information and processes related to orders, such as order entry, inventory management, order fulfillment, and post-sale service.

Physical Showroom for Digital Products

Another trend capable of enhancing the consumer experience and gaining strength in recent years is the physical showroom, which is setting up a physical sales point so that customers can try the products sold online before purchasing them. Therefore, after physically interacting with the product, consumers can normally order it online and receive it traditionally at home. It is a way to generate satisfaction in customers and desire for products.

Reverse Logistics

The increase in online purchases has also triggered a greater flow of reverse logistics, as exchanges and returns become more common. And then it takes more than just preparation to handle this process. It is essential to implement the right strategies, have the support of technology, and prioritize good service so that reverse logistics occurs as quickly as possible. If the customer has a good experience during the exchange or even the return, they will surely come back.

Multidisciplinary and Highly Qualified Team

From employees working in the warehouse to truck drivers, the past few years have shown the market a great lack of qualified, multidisciplinary, and capable workforce. The lack of efficient employees during the crisis, to optimize resources, represented a challenge for the supply chain, and all of this has left some lessons learned that should be invested in 2023.

Therefore, more than a salary increase, take advantage of the growing market to invest in training your employees, provide training, provide guidance on the operation of your entire company’s structure, create a corporate culture, keep employees motivated and safe. A company that offers good personal and professional conditions will not only have an aligned and motivated team but also secure and loyal employees.

Given the moment when almost all retailers are in crisis, in 2023, it will be absolutely essential to retain, empower employees, keep them safe through technology and new people-centered strategies.

Is your supply chain prepared for the challenges of 2023?

There are many trends to apply in the daily life of the Supply Chain, and of course, to make everything practical, simple, efficient, and optimized, it is important to have technology on your side. Agreeing and wanting to adopt logistical trends does not mean being forced to change the entire technological apparatus of your warehouse, but it is necessary to adapt it to the new market.

Today it is possible to rely on some management systems capable of assisting in the various specificities of your company, such as:

WMS

The WMS system is a robust and complete software capable of interconnecting your warehouse’s native system with automatic systems and the main ERPs on the market. With the WMS system, it is possible to monitor all Supply Chain information in real-time, view and have predictability of important metrics for workflow control, performance evaluation, and future action planning. In addition to all operational management, with WMS, you optimize financial resources, better organize inventory, ensure accuracy, and monitor market demand based on monitored history.

YMS

Just as it is important to have the help of an internal system, the external monitoring software helps accelerate the workflow. The YMS system manages all yard management, contributing to optimizing vehicle flow, both during loading and unloading of goods. Its main goal is to ensure the delivery and pickup schedule and dock availability, ensuring the proper rhythm of entry and exit from the yard and the best use of your workforce.

OMS

Another system that allows the applicability of Supply Chain trends in 2023 is the OMS system, linked to the customer experience, as it tracks all information and processes related to orders, including order entry, inventory management, fulfillment, and post-sale service. The software offers real-time data monitoring, both for companies and consumers. For example, it is possible for organizations to monitor inventory levels and demand fulfillment flow, while the customer can better track the status of their order.

The main advice is to do everything with great care. Conduct an analysis with your team, set growth goals, and plan the best way to achieve excellent results. Also, count on partner companies that understand the reality of your business and provide the best conditions to assist you in your quest for success. Only then will you know when to make each investment without compromising your company’s budget.


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