5 More Supply Chain Trends for 2023
We recently published an article about the first 5 supply chain trends for 2023 that shippers should keep in mind.
While that article covered 5 of the biggest trends we will see in 2023, it wasn’t quite everything. So, we are back to give you another round of trends to be on the lookout for as we get closer to a new year.
No one can predict exactly where the Russia-Ukraine conflict and US-China trade tensions will lead, but with today’s globalized supply chains, they are sure to cause changes. Logistics professionals will have to keep abreast of changes due to sanctions, conflict, and tariffs. Some supply routes may become more costly, while new ones in other regions may open up new opportunities.
As political turmoil continues to affect our nations supply chains ability to keep goods flowing in and out, there is one thing that is a certainty; the modern supply chain has been shaped by geopolitics. From tariffs to cross-border shipping hurdles and bottlenecks at ports. Whether or not you’re directly involved in importing/exporting, you’re indirectly impacted, and all of these issues intersect with and are pushed further with geopolitical developments to some extent.
Onshoring and Nearshoring Trends for 2023
The supply chain difficulties experienced during the pandemic, and the changing global political situation have made manufacturers look closer to home for production facilities. Onshoring and nearshoring of manufacturing will very likely continue on throughout 2023 and beyond. These strategies present new opportunities that could radically change the logistics market landscape as shippers and suppliers seek to bring their supply chain closer to home and become less reliant on distance international collaboration.
In fact, we believe that these strategies will be prevalent enough that we have previously covered the topic of nearshoring and reshoring. Read that blog post here.
Green Supply Chains
Consumer demand for green and sustainably produced items already drives several strategies in the manufacturing and product design industries. As companies look to show consumers that they are striving to be and remain eco-friendly, green and sustainable logistics providers will be much more in demand than they are currently.
The changes that we are likely to see throughout 2023 in an effort to increase more sustainable and greener practices will include increased adoption of electric vehicles for last-mile delivery, more solar-powered warehouses, and the circular supply chain becoming a more commonplace staple of all sustainability-focused companies.
If you haven’t already started taking actions here toward visibility, reduction or offsetting of your carbon emissions, you should start to evaluate the first steps toward a carbon-neutral future.
More powerful software services, IoT innovations, and AI-driven forecasting technologies will continue to drive changes in the logistics industry throughout the whole of 2023. The companies that stay competitive and ahead of the curve will be those that are adept at implementing new supply chain tech solutions quickly and efficiently.
With as fast as technological advancements in the logistics space move, having your finger on the pulse of industry is absolutely vital to this end. Subsequently, this will likely lead to a rise in shippers partnering with 3PLs. Doing so will allow them to take advantage of cutting-edge technology platforms and other new supply chain tools without needing to make a sizable investment upfront. When you partner with a tech-forward 3PL like Redwood, you can ensure your supply chain will stay up to speed with rapidly changing tech trends that will only accelerate in the year ahead.
Increased technological solutions bring many advantages, but it also brings potential exposure to cyberattack. Cybersecurity will be increasingly important for all industries, and logistics is no exception. Businesses will be looking for new security technologies, training employees in handling and securing sensitive information, updating and adding security software, and consulting with or hiring cybersecurity professionals.
Just as an enlarged digital fingerprint creates added risk for individuals, companies making important tech investments will need to make sure to properly protect their data and have important discussions with partners. Open but encrypted ecosystems like what’s empowered through RedwoodConnect™ are a great way to stay protected while still collaborating well with key tech partners.
No one can predict the future perfectly, but by looking at these trends and how they will affect your business, you can stay ahead of the curve and remain proactive in driving new growth in 2023.
Global changes will shape the logistics landscape in 2023 and the years to follow; conflicts and trade disputes will alter supply chains and shipping routes, and businesses will increasingly onshore and nearshore manufacturing to combat these issues. Consumer demand will encourage more sustainable industry, a strong online shopping industry will encourage changes to the logistics industry such as zone skipping, new technology will allow greater efficiency and there will be an increasing demand for cybersecurity along the whole supply chain.
Want to keep your supply chain ahead of the curve and the trends for 2023? Reach out to the team at Redwood and let us help you get prepared.