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Keeping Pace With The 2023 Supply Chain Trends

December 14, 2022 rsgl No Comments

Keeping Pace With The 2023 Supply Chain Trends

Supply chain and supply chain management is a competitive and dynamic realm. It’s changing at a rapid pace and crossing bounds to achieve a new degree of efficiency each day.


From the internet and globalization making supply chains more efficient worldwide to software and technologies upgrading the procedure, one must learn every trend to succeed.


Moreover, competitors wish to learn or innovate new trends before anyone else can grasp the opportunity. When there is a market gap, a supply chain expert should spot and take the lead.


Whether it’s air cargo Dubai to the Philippines or warehousing companies in Dubai, globalization is everywhere. Much of the transformation that took place in this industry is post-COVID.


COVID-19 had the largest negative impact on supply chain management. It caused major obstacles in delegations and made supply more complex. There was such evolution in the overall market that only a few could keep pace.


If you wish to learn about these evolutions and keep up with the rest of the industry, these 10 latest methods are very crucial.


Scroll below to find out what your business needs to improve with respect to market transformation. From warehouse cold storage to cargo services, we have covered everything.


Tips To Build An Upgraded Supply Chain Business In 2023:


1)   The Importance Of Digitising Things


In today’s automated era, everything from warehouses to storage at a retailer’s space is recorded and tracked digitally. Many startups save this cost to penetrate the industry, but they can’t survive long without digitization.


This process is basically the conversion of unautomated methods to digital ones. Not only does digitization offer minimum wastage, but it also aids with spotting loopholes and technical blunders.


To build a resilient, long-lasting and fool-proof supply chain, technologies like the Internet Of Things (IoT), Artificial Intelligence Software (AI) and Digital Supply Networks (DSNs) are crucial.


They can make substantial changes to a company’s overall supply chain processes, be it cargo services from Dubai to Pakistan or warehousing services in Dubai. These technologies aid if you wish to alter supply volumes, suppliers themselves or even the freight routes.


Thus, by making an effective ecosystem for better collaboration, it helps everyone in the chain, from buyers to suppliers.


2)   Contribution Of eCommerce


While the entire world was inflicted with Coronavirus, it brought a positive change, at least for e-commerce. The use and awareness of this new technology spread far and wide.


Being under a strict lockdown, all purchases were made through the internet, making people aware of its great advantages. This suggests that online shopping trends will remain high in the future and is an aspect of both B2C and B2B businesses.


An estimation suggests that more than 50% (in fact, almost 79-80%) of sales carried out using B2B are going to be regulated by e-commerce.


This field hugely relies on how often the user has been in touch with it, which is dependent on the smoothness of the supply chain.


Due to this, it is crucial for companies to create and manage supply chains that can result in as little as possible. Through this, the purchases are delivered to users in a short period ensuring their demands.


3)   Researching Reverse Logistics


Based on statistical research, up to 30-40% of goods purchased online are returned. This transportation of such goods from the end of the line or destination point to the warehouse cold storage or simple warehouse is defined as logistics.


This is an important task for industries to meet as customers prefer to buy from sites that offer returning goods without any conditions. And this is the key point in impressing your customers and must be addressed.


The basic model is designed on principle to handle cargo services as swiftly at the time of return as at the time of sending. An example is a return cargo service from Dubai to Pakistan or from Dubai to the Philippines.


For this, it needs to be considered what percentage and what type of goods are most expected to be returned and its cause. The return of goods may take more capital than the total cost of it, resulting in a loss or that the product gets delocalized in the journey.


So there must be some return policies specified that satisfies both the company and the users.


4)   The Need For More Robust Chains


While the virus brought great drifts in supply chains, it became more important than ever for the consumer. This made the shopkeepers work on designing supply chains whose networks are strong and whose links are well established to avoid any losses.


The chain should be fast to react to and repair in case of damage. Building a strong supply chain includes a flexible mechanism with strengthened communication between business partners along with offering a range of products from a range of shops.


Well-structured chains can handle all problems giving customers a smooth and likable visit to their website.

5)   Impact Of Local Sourcing


The global pandemic was the core reason a shift to a ‘localizing’ supply chain became more trendy. Since this sounded like an efficient move, many firms took the step forward.


Moreover, since border barriers were more strict immediately after COVID-19, there was more scope for operating locally. This also helped with lead times, which significantly declined once buyer-seller miles were minimized.


From an ethical and ‘environmental’ perspective, this helped reduce carbon emissions. While this thought is rarely the core goal of a supply chain, it surely was a plus and attracted customers.


After all, international freight leaves more negative impacts on the environment than any other carbon source could!


6)   More Automation Technology


With AI minimizing human mistakes at rapid growth, drones are the new normal that speeds up last-mile transport. Yes, exactly what we discussed above! If you wish to optimize costs, warehouse automation procedures are already in full swing.


They are even projected to grow by more than 100% by the end of 2025. Doesn’t it feel like it’s high time? Moreover, Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs) are segments that will hit over $4.5 billion and over $6 billion (respectively) in the future.


This might seem like a heavy cost for a startup, but even SMEs are into the idea. Many have reported that their startup struggles decline largely by adopting these methods.


7)   Move Towards Cloud-Based Logistics


Cloud technology is becoming cheaper. And by cheaper, we mean they’re coming to the closest SMEs (small and medium enterprises) you can think of. Cloud technology methods recently had an annual growth of almost 19%, which is a compound rate!


While the success was already fast-paced, COVID-19 hit and contributed to the growth. More than half of the service providers in the logistics industry are now cloud-based. Not only that, but many more are moving or merging their businesses with cloud-friendly logistics service providers.


8)   Environment And Logistics


Greener and carbon-efficient supply chains are a top preference for most customers these days. Sustainability was never the core talk when it came to supplying chain and logistics.


However, times are changing! So when evaluating everything across your logistics department, look for how benefiting the environment can also offer your company a competitive edge.


9)   A Trained Labour Force


Spotting the right skillset among workers is the key to any business’s success, no matter what industry it’s part of. While hiring fresh labor, a supply chain business should also work on the training and learning of its existing employees.


This creates a sense of motivation while also boosting productivity. While your customers are searching for a ‘warehouse near me’, they know what quality they’re looking for.


10)  Time-Efficiency In Last Mile Transport


Global commerce changes in world trade and other aspects have led to an increase in shopping activities requiring a small delivery period.


Nowadays, others and specific wholesalers, for example, supermarkets, have improved their last-mile transportation process to act completely up to the customer’s requirements.


So this new phase has motivated business owners to subject a heavy amount of cost for quick and systematic handling and distribution of goods. This can be done by following end-mile transportation showing a planned way for the process to enhance customer trust.


However, no matter how organized, the plan would fail in countries located in the Middle East and North Africa. This is because of the difficulties in identifying street addresses due to the infrastructure style there.


Thus in order to retain customers from these regions, the company must ensure to have the latest electronics advancements so as to easily pinpoint warehouse companies in Dubai.


Our Advice For Working In A Dynamic Industry!


Technology and digitization play the biggest part in any developments we experience in the supply chain and logistics industry. To satisfy consumers in such a fast-moving industry, a business has to be adaptive and should stay consistent with this adaptive behavior.


Nothing but the loopholes in current processes and our own efficiencies guide us further, so keep moving! Evolution certainly comes from spotting current disruptions and obstacles.

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