Global supply chains have experienced significant disruption since 2020.
The UK is facing a very particular set of issues, as the continuing fallout from the instability introduced by Brexit is compounded by current international crises such as COVID-19 and the Russian invasion of Ukraine.
As is clear, these major challenges have persisted well into 2022, and show no signs of abating in the near future.
So – what are we to expect in the coming months – and even into next year? In this article, we will explore the current predictions for 2023 in terms of supply chains and the ways in which we may tackle the issues affecting them.
Will it be Back to Normal in 2023?
As things currently stand, it seems very likely that our current worldwide supply chain woes will continue in the same vein well into next year.
“There may be some minor easement, particularly if there is some positive resolution of the crisis in Ukraine, but it seems unlikely that this will have any significant effect on the industry in the short term,” comments James Durr of auction company (Manchester) Property Solvers.
According to a study undertaken in the first quarter of 2022 by procurement software company Ivalua, more than half of industry leaders believe that the problems will have only begun to ease by the end of 2023.
Less than half of that number expect to see any easement by the end of the current year.
A cumulative loss of approximately £783 billion is expected to rock the UK’s GDP as a result, according to Business Leader.
This, then, is no small matter – as is already very clear to most professionals in the supply chain sector.
So, what can we expect as we continue to battle these setbacks?
A Focus on Restructuring
While it is tempting to tackle lengthy backlogs by overordering, this must be avoided in order to prevent an exacerbation of current issues and a decrease in supply at source,
The responsible approach is to focus on restructuring and to find new methods to work around the existing issues where at all possible.
Recruitment Drives
Personnel shortages have hit a great many sectors following the height of COVID-19, and the supply chain industry has been among the worst affected. Firms within the sector are likely to continue offering highly competitive salaries and additional perks to try and attract new recruits.
Younger workers moving into management positions may also add a fresh perspective on the current issues, and may prove to be a driving force for the following development.
A Move Towards New Technologies
The same study by Ivalua mentioned earlier in this article suggests that the modernisation of sourcing technology will be key to combating current and future supply chain issues, so a revision of the systems currently in place appears to be vital.
A Focus on Sustainability
Of course, the sustainability of supply chain infrastructure is a vital matter in and of itself. However, with the UK’s current aim being to hit net zero emissions by 2050, there is also likely to be a much stronger focus on ecological sustainability.
Not only is this part of the procurements and supply chain sectors’ duty to the rest of the world, but it will likely prove beneficial in a range of respects.
The use of alternative fuels will go some way towards a reduction in our reliance on oil – the cost of which is another major issue affecting supply chains.
A “green” approach will also aid in the prevention of the wastage of resources.
While there are significant challenges ahead for global supply chains, it is clear that the industry is taking major – and considered – strides forward in tackling them, and in laying the groundwork for a productive and well-managed future.
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