As the supply chain industry is constantly evolving, it can be challenging for business leaders and supply chain managers to stay on top. So, this year, instead of reacting, companies will be proactive and stay in front of the global supply chain disruption with these top supply chain trends to look for in 2022.
Supply chain in 2022: Market Outlook
As the supply chain disruption continues into 2022, companies continue to see the risks and challenges for our global supply chains. However, companies are transitioning from “survive” to “thrive” as the global economy begins to recover from the COVID-19 pandemic. So, while there are still pieces to pick up, companies are starting to see supply chains recover.
A lot of the supply chain trends from the past two years have stuck around, and management will continue to see these trends through 2022. With challenges still arising from the pandemic, global port congestion, China power disruption, and other factors, supply chain management must prepare for more unmatched conditions.
Continue reading to see what supply chain management needs to know to thrive in 2022.
What are the key supply chain trends for 2022?
With a massive spike in e-commerce shopping last year, omnichannel solutions grew into one of the highest supply chain trends that supply chain management adjusted to fulfill the new way of shopping. However, if your company kept the old rigid supply chain ways, which did not have much diversity in terms of suppliers, partners, and marketing channels, then your business suffered throughout 2021.
The omnichannel solution has allowed companies to diversify and not depend on one supplier. As a result, supply chain leaders are searching for new ways of distribution, which has leaders expanding and using multiple sales channels.
Resiliency is a crucial supply chain trend in 2022. Labor shortages, capacity limits, and raw material backlogs force companies to find new ways. A recent report from the Capgemini Research Institute stated that 62 percent of respondents said resilience would be a crucial priority for supply chains.
So how can companies increase the resiliency of their supply chain? The study defines a resilient supply chain with agility, diversification, and contingency planning. Agility allows companies to increase and decrease production at any moment and set up new channels for distribution. Diversification describes the abundance and flexibility of the suppliers for certain products, which means having multiple suppliers for various products. Finally, contingency planning is a course of action designed to help an organization respond to an event that may or may not happen. It will result in suppliers having fewer seen and unforeseen disruptions.
Are you struggling to build a resilient supply chain? Check out our free e-book here to learn more.
In addition to finding supply chain trends early and preventing issues, supply chain visibility allows for more efficient customer service. Supply chain visibility will enable companies to track components as they travel from supplier to manufacturer to the consumer – giving you real-time data about logistics and other aspects of your supply chain. Supply chain visibility is the key for supply chains to help them with uncontrollable factors like shortages and backlogs constantly arising. It allows companies to tell the end consumers if their packages are delayed and give them an exact location and new delivery date.
Many companies will turn to a third-party logistics (3PL) provider for their advanced technology software already in place. By partnering with PLS Logistics Services, we give businesses proprietary to our transportation management system (TMS), PLS Pro. Our TMS software allows businesses to control, design, and fine-tune their transportation. As a result, PLS Pro increases customer service by giving companies more control over the last steps in the delivery process, which has become a priority as supply chain leaders continue to revamp their supply chains.
Learn more what PLS Pro can do for your company, here.
Digitalization is an essential element that will help with resilience and visibility in supply chains. In addition, digitized networks use technology to increase workflow and data collection, creating challenges for supply chain leaders for both talent and data infrastructures. This supply chain trend will attract new talent while reducing worker shortages and improving current employees’ productivity and decision-making.
With e-commerce booming, the need for cybersecurity has increased. Cybersecurity is crucial for protecting networks from cyber-attacks, which continue to be a threat to supply chains globally. This interconnectedness with manufacturers, consumers, and supply chains can unintentionally expose each other and their customers to privacy breaches, identity theft, and more.
In 2022, companies should expect to collaborate when safeguarding networks, people, and programs. For example, many companies should invest in firewalls and advanced anti-hacking technologies. In addition, there should be extensive employee training on each new program to help decrease exposure to cyber threats.
Make your supply chain more resilient and visible with PLS Logistics Services. Contact us today to learn more about our 3PL capabilities!