As a result of COVID-19 interruptions, the supply chain has faced extraordinary strains in the last several years. Most of the same issues still exist in 2022. As a result, supply chain strategies are becoming increasingly focused on predicting, responding to, and preparing for the unexpected. In 2022, the most critical supply chain management trends all focus on increasing the supply chain’s resilience. Supply chain resilience and agility will be a priority for the most successful companies in the future.
An Overview Of The Supply Chain Market
What Is Supply Chain Management?
According to CIPS, Supply Chain Management SCM is a process that deals with how commodities and services move from their origination to their final consumption. To achieve this operation, a company needs to build a supply network that provides links in the supply chain. It includes various activities, such as strategic planning, sourcing, manufacturing, and storage and delivery.
Importance of supply chain management
By providing value consistent with a company’s plan, effective management of the supply chain improves a firm’s finances. Providing products is essential to supply chain management in ensuring customer satisfaction. Good supply chain management is crucial to decreasing operational costs.
5 Key Supply Chain Trends 2022
Planning for the future is the key to a successful and sustainable supply chain.
1. A rise in the usage of robots and automation in warehouse activities
Due to a lack of available workers, businesses are turning to automation to complete orders. Using new technologies, stock management at warehouses and distribution centers can save money. According to eazyStock, 38% of enterprises now use robotics and automation, while 23% plan on doing so over the next year or two. Robotics and automation are most often used in warehouses to select, pack, or sort orders and material and product transportation.
2. Emphasis on the circular economy and sustainability
The supply chain contributes significantly to climate change. Nowadays, more individuals are concerned about the materials and origins of the products they purchase. Also, increasing numbers of people are switching to more environmentally friendly products. Therefore, making fundamental strategies and taking significant actions to meet this scrutiny will benefit the company’s financial success in the long run. Creating an efficient supply chain without first reviewing sustainability objectives is impossible. Hence, companies should find green stock goods, strategies to decrease carbon emissions, and alternative materials while attempting to cut costs, enhance efficiency, and maintain optimal stock levels.
3. Digitalization of the Supply Chain
Digital supply chains will allow inventory management strategies to adapt to market changes or short-term supply chain challenges. Digitalizing processes and incorporating supply chain software development services will increase data accuracy and visibility, allowing for faster interpretation and analysis of data so that companies can make better choices. When firms have the correct data, they can adjust and quickly make changes. As a result, supply chain teams will have more time to deal with clients, external supply chain concerns, and supply chain partner disputes.
4. The growth of e-commerce
Online purchasing is becoming a part of everyday life, and if businesses haven’t already built up eCommerce systems to accommodate demand during the epidemic, now is the time. Lockdowns forced many firms to go online during the pandemic, but the trend has continued. 80% of B2B sales will be made through digital platforms in the future, according to Gartner. Setting up a website is just a small part of establishing an e-commerce channel. Businesses must have a supply chain that is both resilient and effective, which involves preventing stockouts and fulfilling clients’ demands with rapid delivery.
5. Modern Anti-Hacking Techniques
Cybersecurity is becoming more critical as firms move to robotics and cloud computing. Therefore, companies must spend a lot of money safeguarding their data and infrastructures from unauthorized access. There is a risk that hackers can access important information because of the openness of data and data-driven systems.
Future Of Supply Chain Management
Supply chain executives must foresee the influence of future trends in supply chain management to create a supply chain capable of thriving. Forward-thinking supply chain managers can use this inflection moment to make supply chains that are both future-ready and conducive to the sustainable business plan and the advancement of significant procurement objectives. Six things to remember while building a supply chain fit the twenty-first century.
- Ethics in the procurement of goods and services
Companies must take action to put their sustainability plan into practice. - Supply networks that focus on customer needs
Build supply chains that put your customers first by using marketing and R&D knowledge. - Small-scale supply networks
Decentralization, additive manufacturing, last-mile advancements, and machine intelligence will help you get closer to your consumers. - Decisions based on data
Consider decision-making a business discipline enhanced by analytics technology. - A workforce ready for the future
The ability to quickly hire and reskill one’s employees is crucial for your organization’s success. - The Right Technology
To get there, you must change the way you think. Find out how to make smart technology investments. And also ensure that your company keeps up with supply chain technology trends.
If the systems that make up your supply chain are appropriately set up, you should handle any unforeseen challenges that might come your way. Uncertainty in the supply chain might persist into the future, so companies who take steps to prepare for it now will have a good start in meeting new issues when they arise.
