Disruptions to supply chain operations are set to stay in 2023, whether they be existing or new geopolitical conflicts, inflationary pressures and the recessionary environment, climate change weather events, or other issues yet to emerge. They can all impact access to goods and how they flow to their final destination, create port holdups, reduce container and ocean freight availability, and surge prices, among other concerns.
In 2023, amid these disruptions, there will likely be some key supply chain trends to manage. Managing your organization’s response to these can be a critical opportunity in the year ahead. KPMG firmly believes that:
- Nations will be skeptical about cross-border trade cooperation
- Cyber criminals will ramp up activity
- There will be key material access turmoil
- Manufacturing footprints will change shape
- Retail and distribution supply chains are morphing rapidly
- Supply chain technology investments will accelerate
- Scope 3 emissions will be scrutinized on the ESG front
To help set your business up for success in dealing with these supply chain trends in 2023, there are three overarching things that should be in place. These are:
- Capability: A mature supply chain planning capability to always be a step ahead and ready to tackle supply chain risks and opportunities
- Agility: Making sure your supply chain is responsive and agile to manage the unexpected, and to deal with these threats and disruptions appropriately, efficiently and profitably
- End-to-end forward-looking visibility: Having ‘control tower’ visibility on key real-time indicators; being able to maneuver your supply chain beyond your own business borders; and building real-time collaboration with your ecosystem of supply chain partners will likely be critical – all done using digital capabilities. The ultimate goal is to enhance collaboration across the supply chain eco-system.
With these three factors in place, your business should be set up to turn the challenges of 2023 into a competitive advantage.
In a new article, KPMG delves into the details of these key supply chain trends for 2023 and what to do about them. Read the full article on the KPMG website.
Source: KPMG