TAKEAWAYS
8 Trends That Will Dominate 2023 Supply chain professionals navigated unprecedented disruptions in the past few years. Thomas Insights identi ed some of the top trends in supply chain management from 2022 that will continue into 2023. 1. Increase in reshoring and nearshoring. The Reshoring Initiative projected that reshoring would create 350,000 jobs in 2022, far exceeding the record of 260,000 set in 2021. Fortune says 2023 could be “a nearshoring jackpot for the Americas.” 2. The continued rise of product-as-a-service. Product-as-a- service (PaaS) is an increasingly popular business model that sees vendors combine physical products and services to better ful ll their customers’ needs. Another bene t of PaaS is that it drives sustainable business because it reduces the use of materials and energy. 3. The rise of crowdsourced delivery. The rise of e-commerce necessitates overhauling existing delivery systems. In 2022, retailers began experimenting with crowdsourced delivery, which leverages networks of local, non-professional couriers, and looks set to be the future of same-day shipping. 4. Better conditions for truckers. In 2021,more than 90% of truckload carriers increased driver pay, according to The 2022 American Truck Associations’ Driver Compensation Study . This trend will continue. However, instead of sign-on bonuses, in 2023, companies will likely implement referral bonuses and tenure pay to better retain their drivers, indicates The National Transportation Institute. EMBRACING RESPONSIBILITY As consumers and governments mount pressure on businesses to become more sustainable, many companies are increasing environmental, social, and governance (ESG) eorts and implementing more responsible business practices. Most companies have taken steps to become more environmentally responsible, finds ISN in its 2022 ESG White
5. High supply chain costs. In 2022, increases in fuel prices and ongoing global supply chain disruptions severely impacted retailer margins. Because fuel is more expensive, and it takes a good deal longer for retailers to acquire, transport, and store their goods, commodity prices are also soaring. 6. Smaller warehouses. Another solution to last-mile delivery challenges is to establish smaller, centrally located warehouses, which explains why demand for these spaces continued to grow in 2022. Because smaller warehouses are both in demand and hard to come by, the rental rates for units smaller than 120,000 square feet had risen twice as much compared to bigger warehouses. 7. Major skills gaps remain. The impact of the Great Resignation is still being felt across supply chains. A shortage of laborers, including truckers, is driving up wages and, ultimately, consumer prices. But it’s also impacting recruitment. Supply chain leaders must focus on attracting, recruiting, and retaining top talent in 2023. Reskilling and upskilling the existing workforce are also priorities. 8. Technology investment. In a recent Gartner survey, 61% of supply chain leaders said technology is a source of competitive advantage, helping to inform human decision-making, drive ef ciencies, improve supply chain visibility, and mitigate disruptions. Meanwhile, 34% of supply chain leaders noted that adapting to innovative technology will be the most critical strategic change logistics businesses will face in the next ve years. Paper , culled from ISNetworld data on 22,000 organizations across 230 industries. More than half (53%) have implemented an environmental management system. Almost two-thirds (65%) have waste management policies in place (65%), 24% have water conservation programs, and 9% have renewable energy plans. Tracking greenhouse gas emission is one area for improvement: 18% of companies have reduction strategies for greenhouse gas emissions, but only 9% track emissions.
40 Inbound Logistics • January 2023
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