TAKEAWAYS Shaping the Future of the Global Supply Chain
What Keeps CEOs Up at Night?
Fears of inflation, recession, and overall slow growth are the top worries interrupting the sleep of many CEOs around the world. Slightly more than half (51%) of CEOs surveyed by The Conference Board also say that they aren’t expecting the economy to pick up steam until late in 2023, or even 2024. “CEOs say they plan to mitigate risk by accelerating innovation and digital transformation, pursuing new opportunities in higher-growth markets, and revising business models—the three most-cited actions,” says Dana Peterson, chief economist for The Conference Board. Some concerns are abating. Although COVID remains top of mind for many CEOs operating in Asia, their U.S. counterparts seem to have placed the issue in their rear- view mirrors. By-products of the pandemic, such as labor shortages, remain constant. Finding and retaining talent continues to be a huge challenge that nearly all CEOs place at the top of their internal priority list. “To attract and retain talent—the biggest internal worry of CEOs worldwide—leaders are focused on building stronger cultures,” says Rebecca Ray, PhD, executive vice president, human capital, The Conference Board. “But some key factors that contribute to such an environment— including addressing pay inequality, development opportunities, and a psychologically safe workplace—are relatively low on their list of priorities. “This presents an opportunity for C-suites to revisit their companies’ goals for strengthening organizational culture and the specific actions required to do so,” she adds.
SMBs FIND WAYS TO COMPETE The business disruptions of the past few years have made it harder to optimize supply chains and forced all businesses to examine the best use of resources. It’s tough enough for large companies with deep pockets, but how are small and mid-sized businesses (SMBs) adapting? They’re examining any and all options—including nearshoring, cooperative procurement, and technology adoption—according to a Capterra survey. Here’s where SMBs are spending their energy and money as they deal with disruption and discover new best practices: ● 88% plan to or are currently switching at least some of their suppliers to ones closer to the United States. ● 64% have joined or plan to join a group purchasing organization to help manage procurement costs and challenges. ● 90% are committed to implementing emerging technologies. SMBs are increasing or maintaining investments in the Internet of Things (42%), blockchain/smart contracts (41%), and artificial intelligence (39%). Through strong seasonal forecasting, SMBs also have been able to avoid many of the pitfalls larger retailers face. 67% say their forecasting techniques helped them avoid excess inventory. But many SMBs entered 2023 with some trepidation, concerned about inflation (65%), inventory shortcomings (45%), and economic recession (42%).
16 Inbound Logistics • February 2023
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