Supply Chain has evolved rapidly in the last one decade and supply chain management companies as well as business leaders try to stay on top of these changes. It’s crucial to do so if they want to maintain the integrity of their supply chain and see their business prosper and succeed. Post pandemic, the size of the
supply chain market is estimated to grow from $18,699.45 million in 2020 and is projected to reach $52,632.37 million by 2030, at a CAGR of 10.7 per cent.
That being said, in this article, lets have a look at top five major trends in supply chain that are influencing the market and improving operational efficiencies.
Increasing Focus on Ethical Processes
Organisations which are working under a lot of pressure to achieve true transformation and capture new markets by satisfying more customers, visibility will act as a key objective for them. Majority of people are ready to pay some extra bucks happily for ethical and responsible business processes. This step is acting as a catalyst for inviting investors across the domain to support technologies. The ability to track and trace goods to the source is increasingly adapted by consumers. There is a surge of new business models and heightened trust and collaboration within and beyond organisational boundaries.
For example,
Amazon has always been known to take an end to end view across the value chain to ensure that all parts are working in sync. “The notion that supply chain itself often has more importance than the product can be seen turning true because it directly depicts the values of an organisation”, says
Tim Cook, CEO, Apple.
Sustainability
Many logistic companies are updating their packaging design to commit to sustainable manufacturing processes and are attempting to become zero-waste producing firm. Industry experts believe that such large shifts require a complete overhaul of each step of the supply chain right from how a company source’s raw material to how their products are transported to customers.
Supply chain companies are focusing to make gradual and deliberate changes, so that they can increase their organisation’s long term commitment to sustainability, without overlooking
any crucial steps or getting burnt out. “With the changing times, the supply chain management of an organisation must focus on sustainability, along with increasing speed and flexibility” says Mary Barra, CEO, General Motors.
More Focus on Customisation
Customisation has become a much loved topic in supply chain industry nowadays as most of the companies are implementing an increasing level of customisation in different parts of the supply chain. Its need of the hour to segment supply chain and build a customised strategy and approach for each segment.
Sometimes, it can be difficult to keep up with the demands of mass customisation and in those situations supply chain firms consider different ways. Some big players have come up with customising their own manufacturing process, ordering services like CNC machining and injection molding.
Industry experts believe that increasing customisation has become more realistic as companies work on improving other aspects of the supply chain. For example, companies may find it easier to manage personalised customer orders if they can successfully automate their order processing systems. It is important for firms to simplify most of the areas of their business so that they can pay more attention on the customisation process of their products.
Managing Risks
Companies are focusing to decrease their risks as much as possible by adopting circular supply chain in place of linear supply chains. Many companies have opted to break down their products and turn them back into their raw material form to deal with the rapid rise in the costs of raw materials and their volatile availability.
Circular supply chain can help firms to spend less on raw materials and hence, it reduces the risk of price volatility. It can also help companies in cutting down the costs, past the initial costs of putting new processes in place. Moreover, a circular supply chain creates less wastage and helps the organisations in reducing their overall impact on the environment. “At some places, even government and customers have also come forward to provide incentives to companies involved in sustainable practices” says Brian Krzanich, CEO, Intel.
Elastic Logistics
Elastic Logistics has emerged as a trend which allows the supply chain to easily expand or shrink according to the demands of the market. It provides flexibility in many senses to the supply chain such as carrier space, container usage, route optimization and sailing schedules. Elastic logistics provides better handle potential issues such as overstocking and un-optimized space in the ships. It enables the businesses to enjoy greater stability and help them in remaining competitive despite market fluctuations. Industry experts believe that elastic logistics can allow supply chains to easily expand or shrink according to the current demands of market.
How’s the Future of Supply Chain
In the coming future, organisations will surely realize that supply chain processes aren’t just about filling orders. In fact, the data, information and knowledge that flow throughout these processes can be used to the overall benefit of the company. Supply Chain can be seen playing a much more integral role in the business operations of all the companies in the market.
