

Supply chains have seen a lot of change in the last few years. Will that trend continue? Every moment you have of advance notice can help your business prepare. So, without further ado, here are just a few things we’re expecting for the logistics industry next year:
Stock Shortages Turn to Oversupply
The economy is still expected to see less activity in 2023, leading to recession. As such, consumer demand is expected to see a steady reduction just as manufacturing has begun to meet demand once again. With so many products on back order for so long, many businesses are likely to find themselves with a previously unexpected overstock in the new year. So, consider adjusting your inventory management techniques.
Labor Shortage to Carry On
Despite the looming recession, economists expect the jobs market to remain strong for workers with a continued low unemployment rate. As such, workers have the ability to choose with more discernment where they would like to work, and openings for less-competitive employers will continue to remain open. To ensure your supply chain is running smoothly, be sure to work with a third-party logistics partner that values its employees and prioritizes an equitable living wage.
Climate Contingency Needed
This past year has seen some intense shipping delays caused by climate change: low water levels in Germany and on the Mississippi River, heat waves in China causing equipment malfunctions and overheated workers, increasingly damaging hurricanes making parts of the world unreachable for elongating stretches of time. The need for contingency planning particularly with your supply chain’s climate change vulnerabilities is at an all-time high. Something as simple as strategically-placed warehouses in multiple locations can limit your liability considerably.
Carriers Finally Catch a Breath
Lowering consumer demand is going to give carriers a chance to catch up and provide better maintenance to their fleets. And the huge demand for new shipping vessels a year ago means that as these ships are delivered over the course of 2023, businesses will see more containers available for their shipping needs. Together, these two factors are likely to decrease the cost of shipping for the first time in years.
Continued Growth in Sustainability
For many consumers, choosing a product from a company with a commitment to eco-friendly business practices can be a deciding factor between competitors. For many businesses, pairing this with a need for a circular supply chain that includes returns can lead to huge gains in profitability and sustainability in one go. So, finding ways to implement the zero waste methodology in your warehouse should be on your horizon in the coming year.
A Return in Reliability and Customer Satisfaction
Though some may have thought that the recession would extend what has begun to feel like a never-ending period of unprecedented times for supply chain management, it appears that most factors will allow a new equilibrium to be reached. Though supply chains will never look the same as they did in 2019, you should see a push toward new normalcy and reliability in 2023, which will go a long way to foster good customer relations with those who have grown tired of the situation.
It appears that things will continue to change for supply chains in the coming year, but many are likely to lead to a more reliable experience for everyone. Thinking about making your own changes to ensure you’re creating the best customer service experience possible? Reach out to our team to learn more about ways to stabilize your supply chain.