Over the last three years, there have been massive disruptions in supply chain operations. While things have stabilized significantly, most of the issues are expected to stay in 2023. From climatic changes to geopolitical conflicts, there are a number of things that will have a direct impact on the supply chain.
Read on to learn more about Benjamin Gordon‘s vision of what all of these means for the supply chain industry.
Supply Chain Industry in 2023
Despite the disruptions, there are some key trends in the supply chain that will stay in focus during the year. In order to stay ahead of the curve, it is essential to manage your company’s reaction to these trends.
For this purpose, it is necessary to work on three main things:
Capability: A successful business always stays one step ahead and always be prepared to tackle any risks and opportunities. Having a supply chain maturity model in place can improve your capability to tackle any challenges that come your way.
Agility: No amount of planning can prepare you for the unpredictable challenges that come your way. The only way to deal with such issues is to ensure that your organization is agile and responsive to manage unexpected disruptions without incurring major damage.
Forward-Thinking: While strengthening your company is necessary for making profits, maneuvering your supply chain beyond your own business borders can further improve your chances of long-term success. In fact, it is now critical to build a real-time collaboration with your supply chain partners that functions as a web to enhance the collaboration.
Trends to Look Out For
According to Benjamin Gordon, these are some of the trends that are expected to dominate the supply chain industry.
Accelerated Technology Investment
One of the key trends in supply chain management that have emerged over the past year was investing in a cloud-based digital strategy. It is expected that this trend will further accelerate in the following year as more and more companies are learning about the benefits of using such a module. At the same time, more companies would be leaving behind traditional methods of determining freight costs.
Cyber Crimes
While there are a number of benefits of moving one’s supply chain business online, there is one major downside as well: cybercrimes. With online hacking becoming more sophisticated than ever, cybercriminals are expected to infiltrate supply chains to steal from their business. However, this risk can be reduced by rethinking your supplier networks, investing in new technology that is more difficult to hack into and making changes to nearshore.
Procurement
Due to the ever-changing geopolitical environment, the foreign exchange rates, upstream operating rates, and level of stocks are expected to be extremely volatile. These can trigger varied behaviors from different markets around the world. Therefore, it would be necessary to find new methods to continue operating in the unpredictable environment of the supply chain industry.
All things considered, Benjamin Gordon believes that preparing oneself for the upcoming year is the best way to succeed in the logistics industry. So instead of being scared of the volatile environment, learn to use the right tools when faced with any of these challenges.
Author: Benjamin Gordon
Benjamin Gordon is founder and Managing Partner of Cambridge Capital. He draws on a career building, advising, and investing in supply chain companies. Benjamin has led investments in outstanding firms including XPO, Grand Junction, Bringg, Liftit, and others. Prior to Cambridge Capital, Benjamin built BGSA Holdings into a global leader in M&A for the supply chain sector. As CEO of BGSA, Benjamin led the firm’s efforts, advising on over $2 billion worth of supply chain transactions. Benjamin has worked with firms such as UPS, DHL, Kuehne & Nagel, Agility Logistics, NFI Logistics, GENCO, Nations Express, Raytrans, Echo Global, Dixie, Wilpak, and others. Benjamin received a Masters in Business Administration from Harvard Business School and a Bachelor of Arts degree from Yale College. For more info on Ben, please visit his LinkedIn profile, or follow Ben Gordon’s Blog: Links in the Supply Chain.