2021: Supply Chain Trends to Watch
2020 is almost over. Are you still with us? It's been a challenging year, but there is hope for the supply chain in the near future, although the concept of certainty may not be on the table. 2020 has rattled many businesses along with their end to end supply chain.
Businesses who were late to the party, the digital transformation initiative that is, playing the catch-up game. While other businesses that had the digital infrastructure in place were able to operate resiliently in the face of adversity. As we prepare to enter the new year, now more than ever, businesses are interested in proactively anticipating and forecasting potential risks rather than constantly reacting, introducing flexibility.
New trends are taking shape in the industry with an emphasis on technology implementation as it has shown to be an asset and vital role to effective supply chain management. We have identified key supply chain trends to look out for and follow in 2021.
1. Omnichannel
Responding to consumer demand, organizations must offer an omnichannel experience for their customer. Traditional supply chains with no diversity in their suppliers, marketing channels, and partnerships are doomed to failure. The network model eliminates linear supply chains and maximizes connection. It's important to have a large network of suppliers and to leverage the use of all marketing channels from distributors to eCommerce.
2. Visibility
Visibility may not seem like a new trend, but if there's one thing 2020 has taught us, it's the importance of supply chain visibility. There is no responsiveness or resilience in a supply chain without first having the visibility to understand potential risks and therefore make informed decisions. Investing in automation software to implement visibility into the supply chain will be crucial this year.
3. Cold Chain
You may have heard this term a couple of times this year. It's growing in popularity and as it inches towards the 2021 spotlight, it's prepared to deliver vaccines. As the COVID-19 vaccine begins to be distributed worldwide, supply chains are transforming for the distribution of the vaccine. Prepare for a shipping refrigeration boom now.
4. Sustainability
Sustainability is a global supply chain trend that grows alongside consumer demand. As consumers become more environmentally conscious, they are increasingly inclined to support sustainable practices and demand green products. Eco-friendly supply chain practices are here to stay and it’s important that businesses begin to add sustainability efforts to their supply chain planning.
5. Circular
It's no secret that customers favor businesses that recycle. It's no secret because they take to Twitter and other social media platforms to inform businesses of their inclination. Increasingly, manufacturers are reusing and repurposing discarded products and recycling them into raw materials. Many trailblazing companies are discovering additional benefits and value from circular supply chain practices.
6. Blockchain
Customers expect instant gratification. It's that simple. As for logistics departments, that is quite the task. Blockchain simplifies the disconnect by streamlining communication between shippers, vendors, customers, and logistics firms all in one place. It creates a paperless supply chain and eliminates disruption in customer service; ultimately creating value for the customer experience. Likewise, supply chain managers can foresee potential issues before occurring. Organizations are adopting the technology for their online payment platforms.
Supply chain operations have become smarter, faster, more streamlined, and more consumer-centric. Technology trends such as blockchain, AI, IoT, and others will continue to demand attention from operations and promise efficiency, automation, and simplification. Supply chain agility and trends such as security, transparency, and big data will also continue to rise in demand as companies learn from 2020 and look to minimize supply chain disruptions and maximize productivity.