The imbalance of supply and demand caused by Covid-19 is likely to continue as more businesses battle empty shelves, labor shortages… etc.
However, developments like the increase in digital procurement and reshoring, which have heightened due to the recession, are ultimately going to benefit local and global markets.
Businesses that want to overcome labor challenges and identify ways to stay ahead of the competition must
1. Supply Chain Digitization
Businesses today are working to digitize supply chains and incorporate artificial intelligence to ensure more efficiency. Digitizing supply chains will give businesses the flexibility to respond to market changes or supply chain disruptions.
By automating procedures using algorithms that can identify patterns and analyze data, businesses can eliminate human errors and predict purchasing demands. They can also eliminate guesswork and the need to perform similar calculations over and over.
In addition to delivering more accurate data, AI can help supply managers to analyze and make informed decisions faster. Cloud-based operations will also allow employees to work remotely and in hybrid models.
2. Robots to Automate Warehouse Processes
Companies are now looking to robotics to automate order fulfillment. Robots can play a huge role in enhancing savings and efficiency in supply chains and SCM. The number of robots sold rose by 21% in 2021 compared to 2020.
Many companies are using drones to streamline logistics, and in the near future, drones are expected to become fully capable of delivering small goods across the US.
Robotics and automation can help around the warehouse by picking, packing, and sorting orders, in addition to unloading, loading, and stacking materials. This can speed up labor-intensive tasks, hence improving productivity.
3. Focus on Circular Supply Chains
To combat the rising cost of raw materials, manufacturers use old and discarded products as raw materials. In addition, a circular supply chain system reduces waste from manufacturing companies, enhancing sustainability goals.
4. Adding E-commerce to Their Sales Channels
Online shopping has boomed, especially during the Covid-19 pandemic period. By 2025, 80% of B2B sales are expected to be made through digital channels. So, businesses must adapt their supply chain for e-commerce.
The primary goal of many companies is to ensure the efficiency and
5. Increased Talent Management
Talent plays a critical role in supporting innovation, finding solutions, and designing frameworks. As companies find new ways to manage problems, employees across all departments are expected to learn new ways.
To encourage this, employers will consider providing training, better pay, benefits, and hiring talent with foundational skills such as data analysis.
6. Better Transparency & Visibility
As consumer concerns about the impact of business practices on the environment, global economy, and social structure increase, companies need to be more transparent about supply chain externalities.
Many companies are transparent about sustainability and their efforts to reduce carbon footprint. Governments are also expected to start demanding companies to disclose reports on the impact of the supply chain on jobs created, sourcing practices, and modes of transport.
In addition, in efforts to capture new markets and satisfy customers, businesses will seek more visibility through online media and other supporting technologies.
7. Advanced Anti Hacking Technologies
As companies transition to robotics and cloud computing, cybersecurity becomes a priority. They must invest highly in making sure that their data and infrastructures are safe from external interference.
The exposition of data and data-driven infrastructures creates areas of vulnerability, and interconnected organizations can make it easier for hackers to breach security and steal critical information.
8. Consumer-Centric Marketing
To ensure business sustainability, companies will focus on their customer needs rather than profit. Since many people are interested in climate change, there’s increased scrutiny as consumers demand ethical and greener business practices.
To ensure a successful supply chain, managers will have to retrain their employees to understand how to manage customers. Those who will meet the consumer expectations at the lowest cost will prevail.
9. Adoption of IoT
Companies are utilizing the
The Internet of Things also helps to increase visibility in production, inventory management, and activities in the warehouse, including predictive maintenance. Companies will use this live data to meet customer demands and minimize downtime.
10. Agile Supply Chains
Businesses must also ensure supply chain agility when creating flexible networks that can handle the increasing consumer demand and withstand the ever-increasing uncertainty. For instance, companies with one supplier struggled when that company could not meet their demands.
Companies that can react quickly to changes, delays, and unexpected events to meet customer demands and drive growth will eventually prevail. This requires data analysis, innovation, and collaboration among global networks.
What Should You Expect in 2022?
Due to labor shortages in 2022, companies are more likely to adopt talent management faster to combat the pressing issue. The remote and global workforce will be adopted faster as many companies lack the capital to hire in-house workers and as millennials surge into the job market.
The demand for products is highly likely to increase, hence it’s incredibly important to keep your inventory. If you need assistance with