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Supply Chain Trends are important part of each business operational plan
We are in the middle of Q2 of 2022, and it is the perfect time to look at trends in the supply chain that have started forming. Many factors must be considered that inevitably impact the tendencies such as the pandemic, inflation, and geopolitical situation. It comes out that the main goals in front of the companies are to enhance resilience and efficiency, covering uninterruptedly customer needs. However, sometimes the focus on some aspects accelerates conditions in other fields. Specifically, in our area of work, we noticed the following tendencies:
According to the situation and the increased need for adaptation regarding it, the short-term trends are well-known but very important:
This is always a top priority, but the economic situation nowadays impacts to a large extent its greater importance of it. The main goal is to reduce the costs without redundant investments. For example, the companies prefer to strive for resilience to invest in increasing diversity and segment suppliers. Such plans fall under the long-term priorities, and their realization depends on the performance of the short-term – vicious cycle.
Being efficient reduces costs. Being efficient helps your business grow. And there is nothing random about that. . The more efficient a facility is operating, the less waste there will be. Improvements in the production output eliminate the time-consuming tasks, ensuring the production cycle and respectively the profit increase. A trend like this is not just typical, but it is mandatory.
The nature of long-term trends is challenging for companies. On the one hand, the realization of these tendencies is closely related to the best performance in the short-term. On the other hand, there are becoming more and more crucial for the business.
To have well-trained employees is “a must” nowadays. The era of digitalization transformed the processes and born the need for new skills. Digital upskilling ensures continuity of the workforce. Moreover, the pandemic accelerated digitization – without technical skills, the companies will be not able to fulfil the new digital needs. At first glance, this is an investment in the employees, but it is a part of the long-term success of combating the digital skills gap.
Wherever you look, you will see data. It is like a weapon, but indeed it is the driving part of every business in 2022. Data management, quality and acquisition are critical parts of supply chain operations because they guarantee the production process establishment and minimization of potential errors by creating the opportunity for real-time monitoring. In other words, data is the future, so keep pace with it.
Manufacturing digitization and automation
Digitization changed manufacturing and continues. Industry 4.0 provides the opportunity to use the technologies to improve business results. Implementing smart manufacturing, cloud services, AI and IoT, increases the efficiency, productivity and accuracy in the industry.
To go green is not entirely new yet. The businesses understand that sustainable policies and practices are cost-effective for them. The sustainable business model could reduce many costs by implementing innovative strategies and creating value. That`s why the trend of “green business” is gaining power and will continue to be a hot topic.
In conclusion, it could be said that the trends are various and multidimensional. The industry is trying to balance them, prioritizing to create more opportunities for better diversity and segment suppliers, planning, product life-cycle management and operation model in the future.