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Top 5 Supply Chain Trends 2022

Globally, industries are telling the Supply Chain disruptions. They are working to reduce risk, increase dexterity, and optimize execution. It will be crucial to overcoming the difficult labor challenges of today to accomplish these goals.

 Supply chains will be able to proactively shape a successful future by staying ahead of important trends. Continue reading to find out what to expect in 2022 and beyond.

  1. Advanced Analytics

The use of new mathematical approaches and tools aimed at turning data into new insights is advanced analytics. A supply chain can use advanced analytics to more accurately and efficiently utilize insights. This gives you more power to make decisions that are better, quicker, or more confidence.

Here is a brief explanation of how advanced analytics can benefit the supply chain and why it is a hot trend.

  • Create Visibility

Examine your warehouse’s inventory to determine which items rotate through it at what speed and why.

Utilize the data at hand to divide your product offerings into high- and low-rotating units, then give your warehouse manager this information so they can move items and adjust safety stock levels.

  • Determine delivery issues

Vendors who deliver too late or fulfillment partners who take longer than usual to deliver goods are to blame for delivery promise failures, which point to supply-chain improvement initiatives. Determine the underlying reasons for delivery promise failures, such as vendors who don’t deliver on time, and look for ways to raise the caliber of the products and services that are provided to customers.

  • Identify Growth Opportunities

Identify geographical growth opportunities by visualizing all order, delivery, and customer locations and identifying high spots for new sales hubs, manufacturing facilities, or warehousing depots.

  • Supply chain resilience

“Resilience” in the context of the supply chain refers to a company’s capacity to navigate continuously evolving disruptions in the supply chain using its current resources.

  • A resilient supply chain can bounce back from unanticipated setbacks and adjust to unforeseen future events.
  • Companies will need to rebalance their on-shore, near-shore, and off-shore manufacturing location strategies to increase supply chain resilience globally.
  •  Cybersecurity

Cybersecurity is critical for protecting networks from cyberattacks, which continue to be a major threat to global supply chains.

  • The proliferation of data and data-driven businesses is expanding the potential for vulnerability. Due to their interconnectedness, supply chain partners run the risk of unintentionally violating the privacy of both their clients and one another.
  •  Increased cooperation is to be expected when protecting networks, devices, users, and programs.
  • More businesses will decide to spend money on redundant systems, firewalls, and anti-hacking tools.

4. Artificial Intelligence and Machine Learning

According to studies, supply chain and logistics operations can benefit from AI and machine learning (ML) in ways never before possible. AI in Supply Chain is preferred by many manufacturers worldwide for its

  • cost-saving potential through reduced operational redundancies,
  • risk mitigation,
  • improved supply chain forecasting,
  • quick deliveries via better route optimization, and
  • enhanced customer service.
  • Digitization

Supply chain digitization is the process of substituting digital solutions for manual or analog processes throughout the e-commerce supply chain. This trend involves the development of a smarter model using digital technologies like blockchain, the Internet, machine learning, etc. The ability to optimize planning, sourcing, and procurement strategies are increased and improved by these technologies.

Here are some of the benefits of digitization in the supply chain:

  • When it’s time to reorder inventory, you can receive automated notifications, saving you money by preventing costly stockouts. This is possible with the right system in place.
  •  Inventory replenishment can be planned more precisely to lower carrying costs and the chance of dead stock. As a result, you may be able to manage your money more effectively.
  • Digitization enables you to reduce lead times and boost supply chain velocity by bringing real-time visibility throughout your supply chain.

 6. Refocus on Sustainability

  • Implementing sustainable practices is one way that more and more businesses are improving their supply chains.
  • Measures of environmental and social sustainability are now more crucial than ever. As consumers start to demand some level of sustainability in their goods and services, businesses that ignore sustainable opportunities risk losing their competitive advantage.
  • A sustainable supply chain increases productivity while generating cost savings. You can significantly reduce the cost of operating buildings, vehicles, and machinery by using sustainable techniques and resources.