Terry Sma, senior vice president and general manager Infor’s Regional Head of Asia Pacific and Japan said that the past few years have been a difficult time for those working in the supply chain. The ability to adapt is therefore extremely important. Because companies still rely on supply chain teams. In order to get through the ongoing disruptions which does not yet see the end of what will happen in 2023
Here are five trends that will have a big impact on businesses and people working in the supply chain in 2023:
Supply chain plans will go wrong in practice.
uncertainty and volatility In addition, local and global factors will affect supply chain operations. For the year 2023, in the long run, supply and demand will not reach stable and sustainable levels. due to geopolitical, environmental and macroeconomic pressures Supply chain planning is still important to business. However, don’t worry about trying to make accurate forecasts for the future. Instead, the emphasis must be on planning for a wider range of what-if scenarios. To ensure that the business is ready to quickly adapt and change to everything that will happen in 2023.
This winter will be harsh.
The Russian-Ukrainian war is having a global impact on energy and food, but Europe, the Middle East and Africa will face special challenges. Although our global supply chain has been developed to help balance oversupply and shortages in the region, But the global impact of frequent, unexpected disruptions in supply and demand will continue to influence inflation, scarcity and anxiety.
Labor has become a major catalyst for supply chain problems.
During the COVID-19 epidemic The idea of essential workers or people working in activities that are essential to daily life To describe some of the workers who are unable to work remotely. and the absence of jobs that disrupted fundamental trade. or pose a risk to people’s health and safety. This group includes hundreds of thousands of transportation and warehouse workers around the world. Workers across Europe have already gone on strike asking the government to raise wages. While the railroad unions in the United States have yet to accept the offer of a new wage contract. Although the work stoppage is likely to be extended. And while wages in many logistics industries have increased over the past two years, as a result of severe labor shortages But these increased incomes are offset by rapidly rising costs of living. Economic inequality will force fundamental political changes around the world. as well as using the workforce to transform employment patterns at major supply chain companies.
Efforts to isolate the economy from China will reveal more flaws in the supply chain.
Over the years, many industries have been expanding their network of systematic procurement suppliers to countries other than China. in order to reduce the impact of the increase in customs duties trade conflict and China’s zero-covid strategy, when Mr. Xi Jinping is still in power for the next five years. Supply chain risks from Taiwan’s future reaction. Show of naval and sea power and China’s expansion of investment in strategically prosperous Third World countries must be dealt with seriously. Supply Chain Changes It lacks a transport and logistics infrastructure or service provider that is as strong as China’s. Therefore, trade routes that cross areas that China has influence or control Might face an unexpected disruption from a world power of this level.
Managing visibility in the supply chain will change.
This year, we will see many of the leading real-time visibility-managed transport providers announce layoffs. Meanwhile, venture capital activity in the supply chain technology sector will decline significantly. Industry analysts are increasingly talking about the fact that many companies that are buying transportation visibility management technology. They are disappointed with investments that do not yield long-term returns. The only presence of transportation data deprives organizations of critical business context.
As the market for real-time visibility management technology shifts from the advertising cycle, to the worrying reality of the global economic downturn and increasing supply chain growth. We will see a renewed focus on supply chain business networks and application platforms that provide a more comprehensive and holistic service. In managing operational visibility of the entire supply chain, stakeholders and potential stakeholders are more involved in purchasing decisions for visibility management technology than logistics. by the procurement department, finance department, operational planning and sales department Inventory Management And even corporate sustainability leaders will look at technology projects to ensure they are scalable. flexible and cover a broad supply chain ecosystem This will help meet rapidly changing business needs.
Krungsri Research Center stated that in trade war The supply chain that used to connect the whole world together in the era of globalization has broken apart (Decoupling). It is important for Thailand to maintain a balanced relationship. To maintain trade opportunities and benefits, it also stated that Southeast Asia is the clear answer for the relocation of multinational companies’ production bases. with one of the highest economic growth rates in the world The size of the population is almost a billion people. expansion of the middle class Including consumers who are still in their youth It is a factor that makes Western nations, including China, pinpoint their business expansion in this area intensely. In the emerging countries or the emerging market, there will be many players from ASEAN as the stars. Including Indonesia with an economic growth of more than 5% and Vietnam with a rapid growth of 7%. There are also other Mekong countries, including Lao PDR, Myanmar and Cambodia, where consumer purchasing power is growing rapidly. hot too
In addition to moving the production base What is clearly going to happen is free trade negotiations, especially in a bilateral format. Match each other according to convenience and benefits that are perfect. Many integrations will still be available. Because every business must adapt to cope with new challenges that will arise in the future. And only businesses that are ready to change and adapt quickly will survive. There are no more answers.
