For businesses that want to be market leaders in 2022, staying up to date on supply chain and logistics news and trends is crucial.
Global supply networks were significantly impacted by the imbalance that this pandemic has caused between the supply and demand for products. Global productivity decreased due to the pandemic and the lockdown.
E-commerce growth is now back to its earlier status but the delivery size remains high. Businesses must reevaluate their operations and adopt emerging trends in supply chain and logistics if they want to increase efficiency across supply chain operations, cut expenses associated with logistics, and keep customers happy with on-time delivery.
Let's now see the top 6 Supply Chain and Logistics trends in 2022
The industry is evolving and will keep doing so. Brands must stay current with developments in the global supply chain as the popularity of eCommerce continues to soar and the volume of deliveries rises.
The current top 6 trends in supply chain and logistics are -
- Automation and digitization.
- Inventory forecasting
- Balancing the demand and supply of products
- Multiple logistics partners or outsourcing logistics to 3PL or 4PL.
- Reverse logistics
- Green logistics.
Automation and digitization
The implementation of automation and digitization in supply chain and logistics can bring many benefits to businesses, including real-time visibility, traceability, reduce labor expenses, integration of all processes, better security, and on-time delivery. By automating supply chain operations, businesses can gain greater control over their inventory and supply chain processes. This can lead to more efficient and effective operations, as well as cost savings
Inventory Management and Demand Forecasting
AI-driven tools like data analytics, use the history of data of sales and predict the demand of the product in the market and identify the behavioral patterns of the customers.
It predicts the demand and suggests inventory planning accordingly. It plans for lean inventory or a production-on-order approach for inventory or increases the speed of production as per the requirements of the products in the market.
Smart inventory management and demand forecasting ensure the prevention of overstocking or unexpected out-of-stock situations
Balancing the demand and supply of products
AI can analyze data of sales and identify patterns of customer behavior and predict demand for products in the market and optimize production schedules. On predicting high demand AI speeds up the inventory production and in case of low demand or overstocks in the warehouse, it plans lean inventory or stops production till the need for the next production. Hence it balances the demand and supply of products in the market.
Multiple logistics partners or outsourcing logistics to 3PL or 4PL.
Given the rising cost of labor and automation, outsourcing is a successful cost-cutting solution. Outsourcing of Supply Chain Management shifts the load off the organization and enables it to focus on the core competencies and better customer service.
Outsourcing provides a competitive edge to the business as it enhances operations, controls operating costs, and provides faster and latest solutions through automation and digitization.
With outsourcing to 3PL or 4PL providers, organizations can upgrade their supply chain management as it’s completely managed by the 4PL providers. The 4PL services provide an improved, efficient, and effective supply chain. It provides solutions to the core requirements of your organization.
Reverse logistics
Reverse logistics is the process of moving goods from the customer back to the supplier. This can happen for a variety of reasons, such as when a customer returns a product they are not satisfied with. By managing returns effectively, companies can avoid the wastage of resources, delays, and disruptions. It can help companies improve their environmental performance, keep customer satisfaction high, and can save their company time and money in the long run.
Green logistics are the various ways that businesses can use to make their supply chain and transportation processes more environment-friendly. Green logistics can help to reduce air, water, and soil pollution as well as noise pollution. It can also help to lower the carbon footprint of a business and can help to reduce the greenhouse effect. There are many benefits of green logistics to both the environment and the business.
Building a resilient supply chain in the face of unforeseen events is the major objective for organizations in the coming times. While local and international supply networks continue to face difficulties as a result of the pandemic, trends indicate that many businesses have switched to an automated and digitized supply chain that will maintain the uninterrupted and smooth functioning of their supply chain operations.
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