2023 Supply Chain Predictions

2022 was a big year for many industries as they still work diligently to recover their supply chain from major issues like inflation and labor constraints amidst the 2020 pandemic. Though these complications have made it difficult for businesses, as we leave 2022 behind, we start to see the pressure ease in both shipping and transportation where product will be moved faster and at a higher volume.

Reshoring and Nearshoring Will Be Top Priority

Since the pandemic, companies were forced to reconsider how they approach their supply chain disruptions. Many businesses have resorted to reshoring and nearshoring to nearby countries so that their processes are completed on time and will bypass any potential issues caused by shortages of products coming from far away. Going forward, experts predict that nearshoring will become a top priority in 2023 as businesses are working to prevent their supply chains from further issues.

Digitization Will Continue to Be Important

As the pandemic hit, supply chains all over the world were struggling to keep up with the disruptions and so technology begun playing a large role for businesses everywhere. The digitization of certain processes helped companies obtain better visibility and increased accuracy and efficiency. Throughout 2022, businesses witnessed the benefit of keeping up with the rapid increase of technology as it helped keep supply chains on track, meet customer demand, and improve the overall bottom line.

Businesses Will Focus on Cybersecurity

As your business implements more technology into your processes, the risk for cyber-attacks increases and your company will have to learn how to properly use these technologies. As cybersecurity becomes a growing concern, it is important to focus more on keeping your supply chain free from cyber-attacks. Cyber-attacks can pose threats such as holding data hostage for financial gain or stealing confidential customer information. According to one report, 2021 supply chain cyber-attacks grew by more than 300% compared to the previous year.

Carriers Will Lower Rates and Improve Service

When the pandemic started effecting the world, supply chain suffered as products became scarce and prices were inflated. Due to low inventory, labor shortages, and backlogs, carriers started to increase the rates for both land and sea transportation to make ends meet. 2 years later, businesses have worked to get their supply chains back on track while demand began to plateau, and backlogs have subsided. It is expected in 2023 that we will see a rebalance despite the factors that will play into future labor and material shortages.

Throughout 2022 businesses were still working to get their supply chain back on track but with perseverance the growth of the past year was substantial. As we move into 2023, businesses are hopeful with the current direction of the supply chain and what they should expect this year. As a reputable 3PL, NewStream is excited for what this upcoming year holds for our company and how we can utilize our team of experts to fit the needs of your business so you can focus on the bigger picture and love your supply chain!

Ready to take charge of your supply chain? Let’s chat, our experts are ready to help!