3 Supply Chain Trends to Watch Out For in 2023

The recent years have been tough for businesses across the world. India's supply chains have also faced the brunt of disruptions due to COVID-19 and the recent geopolitical Russia-Ukraine crisis. Various aspects of a supply chain, such as sourcing, logistics, production, and distribution have been adversely impacted. The pandemic has forced businesses to look for new strategies to adapt to the new reality and has brought about a wave of new tactics to combat the testing market scenario. During a recent Commerce Ministry webinar, Indian Prime Minister Narendra Modi expressed concern regarding the impact of the disruptions to supply chains on the global economy. According to a survey by Oracle, several Indians have been unable to purchase a number of items due to shortages (45 percent), forced to cancel orders due to delays (53 percent), and even rationing essential items out of fear of running out (41 percent). There is good news on the horizon, though. The latest GDP numbers for Q1 FY2022–23 suggest that economic growth is healthy. Consumers, after a long period of apprehension, have started to spend confidently, with spending going up 25.9% in Q1. Some of the key trends that will help supply chains perform well consistently in 2023 are as follows:

1. Upgraded supply chain infrastructure

Now that Indian consumers are readily spending and numbers continue to increase owing to a steady rise in smart cities across the nation, businesses will need to upgrade their supply chain infrastructure to service them better. Consumers from tier-II and tier-III cities are more tech-savvy than in preceding years, which means companies need to revise their strategy and reexamine their supply chains for greater operational efficiency and deeper penetration. The biggest changes in supply chain infrastructure that the forthcoming years will witness are:

2. Increased automation in manufacturing and material handling to boost efficiency and reduce lead time

.

3. Vertical stacking of inventory for better space optimization, so warehouses can accommodate more volume per square foot of space. This will also allow businesses to save rental costs for additional storage space.

4. Leaner design to manage the movement of large-sized cargo across the supply chain

5. Ability to handle larger volumes to ensure companies meet the expected high demands of the market

Additional Read: What is a Warehouse Management System

1. Increased investment in technology

Businesses will continue to invest in technology, as observed this year as well. In 2023, we will witness increased investment as businesses seek to improve supply chain planning capabilities through the use of more advanced digital enablers such as machine learning and AI-driven business intelligence and analytics. We will also see a rise in technology to ensure greater integrity and visibility. Companies will also be utilizing technologies to develop lean supply chains. For the uninitiated, lean supply chains deal with the improved agility of supply chains and how they react to internal and external factors.

2. More Sustainable Supply Chains

With an increased interest in reducing carbon footprint, 2023 will witness the emergence of greener supply chains. Digital transformation and technologies such as Big Data management, advanced analytics, artificial intelligence (AI), and security tools such as RFID sensors have brought never-before-seen visibility and accountability to today’s supply chains. There are chiefly three components of a sustainable supply chain: green, transparent, and circular.

3. Green supply chains 

Achieved by integrating environmentally responsible principles and benchmarks into supply chain management through product design, material sourcing, manufacturing, and logistics. Technologies used: AI and machine learning. Advantages: Spot risks, identify patterns and opportunities to minimize waste, and improve efficiency.

4. Transparent supply chain

Maintaining complete transparency about a company’s ethical and environmentally responsible practices and standards. Technologies used: Blockchain and RFID sensors. Advantages: Maintain accurate records of all products and suppliers along the entire supply chain journey.

5. Circular supply chain

Discarded inventory is reduced to its raw material form, recycled into new products, and sold. Technologies used: 3D printing, advanced analytics. Advantages: Reduces wastage and pollution

Recommended: Supply Chain Management Solutions

To Conclude…

Supply chains are the lifeline of most businesses today. They are constantly evolving and staying on top of new advancements by keeping up with the trends allows business owners to ensure better agility and greater resilience of their supply chains. If you wish to know more about improving your supply chains and futureproofing them, please feel free to get in touch with us. With over 25 years in the industry, helping 2,000+ customers like you, Bar Code India can unlock tremendous value for your company and transform how you manage your supply chain.

You may also find these topics interesting.

What is Supply Chain Management

What is Supply Chain Automation

How Real-time Data Translates to Better Supply Chain Management Decisions