Supply Chain Challenges in 2023
As we move into the new year, the international logistics industry faces challenges requiring creative thinking, partnerships, new strategies, and technological investment. With the industry expected to grow globally by $171.9bn by 2027 and a 4.6% growth in new jobs – the promise is there for businesses that have prepared plans to mitigate against supply chain disruptions, inflation and more.
Here are the main areas for logistics professionals to be aware of:
With tighter labour markets, access to available skilled labour is likely a challenge for many companies. This may mitigate as the economic downturn begins to bite in the year’s second half. The growth of skilled migrants and greater automation may provide ready solutions.
Australia amongst other countries saw flooding and adverse weather in 2022, pressuring supply chains and negatively impacting deliveries. Business leaders are already factoring in the impact of natural disasters in 2023.
Rising consumer demands
Changing customer demand patterns – such as the expectation of same-day delivery – put new pressures on the industry. Retailers will create satellite micro fulfilment centres in urban areas, which US carriers are already moving towards.
This will continue to be a significant risk for businesses, with cybercriminals seeing increasingly significant gains for targeting digitised cargo, fare, and passenger systems. Phishing, ransomware and other cyberattacks will be key focus areas for businesses who will need to update their systems and processes to protect their businesses.
Fuel price uncertainty
Fuel prices rose in 2022, and many experts expect these prices to continue into the new year. This will impact freight costs, primarily refrigerated and time-sensitive deliveries.
Australian customers want to factor in the environmental impact of their deliveries. The industry will need to respond by offering access to customer collection hubs, electric vehicles, and other decarbonisation measures.
Retailers may need help to retain customer loyalty, especially as the recession drives customers to look for discounts, promotions, and other discounting. Competition for revenue is likely to only intensify in 2023.
For support navigating the supply chain challenges facing the logistics industry in 2023, IFC is here to help. Contact us for a no-obligation discussion about your business needs. We’re Australia’s trusted global supply chain solutions provider, and we’re here to help. Get in touch: https://www.ifc.com.au/contact-us/.
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