PLAN AHEAD FOR 2023
NOTES Companies will work to counteract competing business priorities and bolster their global trade management processes by investing more in both global trade talent and global trade technologies. This two-pronged approach is particularly important as businesses grow and evolve. Historically, organizations were often faced with a trade-o regarding where and how to invest, having to choose between procurement of software or labor. As a result, funding the technology infrastructure to scale was often neglected. That has changed over time as equipping talent with the right technology to stay compliant has become more and more of a business imperative. –Suzanne Oerman, Director, Product Management, International Trade, Thomson Reuters OUTLOOK The outlook for global supply chain e ciency looks bright, even if the economy looks less so. Higher interest rates will continue to slow economies around the world, reducing energy costs and demand for raw materials and finished goods. Reduced demand will translate into excess capacity in shipping, rail, and trucking, meaning lower rates and fewer bottlenecks. The biggest wildcards for supply chains will likely center around large-scale outbreaks of illness as we see in China, as well as any expansion of armed conflicts as we see in Ukraine. –Ben Johnston, COO, Kapitus
The outlook will improve for global supply chains. The global supply chain remains stretched, but the outlook is improving. The manufacturing industry will continue to be among the most affected by disruption, particularly those involved in high-tech electronics, although we may see increased localization in the United States due to the CHIPS act and an intentional strategy of decreasing reliance on China. –Luke Tuttle, General Manager, North America and Trade Management Services, MODIFI PREDICTIONS
Companies will accelerate the move of global trade out of China. Global supply chains will become more dispersed
The healthcare industry’s supply chain leaders will develop exible, alternate sources of critical components, starting materials, and nished pharmaceuticals. Because many new drugs are biologically derived and sterile, the need for temperature controls throughout the journey, from the manufacturing source to the end user, is critical to maintain stability. Similarly, for complex medical devices, many components are currently sourced from China, which poses future supply chain risks. Life science companies will need to respond to these challenges in order to be successful. Supply chain companies need to have access to multiple types of passive and active temperature-sensitive packaging types, accurate visibility tools that can report in transit, exible reverse logistics networks, and access to multiple modes of transportation. Companies that can offer a true end-to-end solution for new supply lanes will lead the industry. –Wes Wheeler, President, UPS Healthcare and globally integrated as product sourcing moves to Vietnam as well as Kenya, Turkey, Egypt, and Morocco and elsewhere. The challenges for forwarders and NVOCCs will be to set up ofces or locate new agents and train their staff in the day-to-day process of international transportation. Globally available systems will be essential to assist with this transition through process controls, automation of mundane critical yet administrative processes, and visibility and control from around the world. Rapid expansion of global sourcing will demand adoption of modern global supply chain software to support the demands of importers for consistency and predictability in their supply chains that they count on to compete for product sales on the shelf or on the web. –Bryn Heimbeck, President & CEO, Trade Tech Inc.
Nearshoring will continue as sourcing and manufacturing in the Americas gains market share over Asia. Global supply chains will become more connected as technology allows for greater visibility into each segment of the supply chain. Connected technology allows for better planning for the entire transport of the shipment while prioritizing speed and cost, and can even reduce carbon emissions by understanding how each mode of transport impacts the environment. –Matt Lawrence, CEO, Fox Logistics
224 Inbound Logistics • January 2023
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