2023 Supply Chain Planning: 10 Key Trends Shaping the Future of Global Trade

Introduction: Navigating the Ever-Changing Logistics Landscape

As we enter 2023, the global supply chain continues to face unprecedented challenges and opportunities. Three years after the onset of the COVID-19 pandemic, businesses of all sizes are still grappling with economic uncertainty, shipping delays, and supply chain bottlenecks. However, successful brands have learned that flexibility and visibility are crucial to weathering unexpected supply chain disruptions.

At FreightAmigo, we understand the importance of adapting to these industry developments. As a full-service, one-stop digital supply chain finance platform, we're committed to helping organizations, enterprises, and individuals transform and redefine their logistics experience. In this article, we'll explore the key trends shaping the future of global trade and how our digital logistics solutions can support freight forwarders and clients in navigating these market conditions.

Let's dive into the expert predictions on what you should prioritize during planning, the biggest logistics challenges to expect, ways to optimize for every opportunity, and the 10 key trends that will shape the future of global trade.

1. Taking a Closer Look: Analyzing the State of Your Supply Chain

In today's complex supply chain environment, inventory is constantly in motion, with stakeholders, goods, and systems spread across the globe. Aligning your shipping systems can position your brand for long-term stability and success. While robotics and automation have been generating buzz, the most significant drivers of competitive advantages have been better technology and increased visibility.

As Lisa Anderson, President of LMA Consulting Group, Inc., notes: "Since logistics is a system of systems, when out of alignment, there are repercussions throughout the supply chain. The largest challenge in 2023 will be navigating continued global disruption while supply chains are reshaped."

At FreightAmigo, we recognize the importance of reliable, SKU-level data in real-time. Our digital logistics platform offers powerful functions to help businesses compare door-to-door freight quotes, track shipment status, arrange customs clearance, and automate shipment documents. By providing comprehensive visibility and streamlined processes, we enable businesses to adapt quickly to new and existing challenges.

As market volatility continues, it's crucial to break down inefficiencies and reassess your supply chain strategy. Neel Jones Shah, EVP of Air Strategy & Carrier Development at Flexport, emphasizes: "Shippers had to be reactive to unprecedented market conditions where asset owners held 100% of the leverage. Now they can reassess their supply chain strategy AND the freight forwarders who are best able to serve them in the future."

With FreightAmigo's digital platform, businesses can gain the visibility and flexibility needed to navigate these challenges effectively. Our 24x7 logistics expert support ensures that you have the assistance you need to optimize your supply chain operations and respond to market changes promptly.

2. Resilience is the Goal: Flexibility & Maximum Optionality are the Keys

To optimize and increase resilience and profitability, companies must redesign their supply chains to be more flexible, agile, and responsive to market changes. Traditional planning approaches often limit flexibility, making it difficult to respond quickly to shifts in customer demand, market conditions, and economic downturns.

Lisa Anderson, President of LMA Consulting Group, Inc., advises: "Shippers should prioritize the SIOP (Sales, Inventory, and Operations Planning) process to remain resilient to changing conditions, while improving customer service, profitability, and cash flow."

At FreightAmigo, we understand the importance of supply chain flexibility. Our digital logistics platform enables businesses to easily adjust production levels, raw-material needs, and transportation modes, allowing for quick pivots when unexpected events occur. By leveraging our technology, companies can implement event-triggered planning strategies and adapt to fluctuating market conditions without increasing headcount or overheads.

Rohit Sathe, Chief Procurement Officer at Sunrise Medical, emphasizes the need for adaptability: "Consumers are repurposing spend due to inflation and recession fears. Logisticians should focus on restoring cash flow and margins, but also stay close to the market, predict the 'repurposing of spending,' and plan for the right SKUs."

With FreightAmigo's comprehensive suite of services, including international courier, airfreight, sea freight, rail freight, and trucking solutions, businesses can identify the right mix of shipping routes and methods to prevent delays and avoid stockouts. Our platform's ability to compare quotes and book online ensures that you can make informed decisions quickly, adapting to changing market conditions and customer demands.

3. Supply Chain Data Isn't Just for Logistics Teams

Cross-team collaboration is essential for maximizing supply chain efficiency and responsiveness. Traditional supply chains often suffer from data silos, making it challenging to get a comprehensive picture of an order's status. This lack of visibility can lead to communication breakdowns and delays in critical processes.

Anders Schulze, VP & Global Head of Ocean Freight at Flexport, emphasizes: "It's hard to prepare for an event like a global pandemic, but if different teams are on the same page with streamlined workflows you can mitigate bottlenecks faster."

At FreightAmigo, we recognize the importance of breaking down these data silos. Our digital logistics platform provides end-to-end visibility, allowing all stakeholders – from suppliers to customers – to access and share critical information in one place. This comprehensive view enables better collaboration and faster problem-solving across departments.

Daniel Stanton, CEO & Chief Learning Officer at Mr. Supply Chain, notes: "Everyone is struggling with uncertainty and trying to find a crystal ball. Companies that are properly positioned can benefit from unpredictable events, even while their competitors are being disrupted."

By leveraging FreightAmigo's digital platform, businesses can ensure that supply chain data is accessible to all relevant teams, including finance, marketing, and sales. This shared visibility allows for better decision-making, improved cash flow management, and more effective demand planning. Our platform's ability to provide detailed reporting on the health of a brand's supply chain can also support finance teams in securing funding and managing financial risks.

4. Better Demand Planning and Flexible Insurance for the Win

As brands struggle to balance inventory levels, the need for better demand and inventory planning tools has become increasingly apparent. The global pandemic highlighted the limitations of traditional forecasting models, prompting executives to seek more effective ways to control their end-to-end supply chains.

Lisa Anderson, President of LMA Consulting Group, Inc., observes: "Executives realize they must gain better control over their end-to-end supply chain to serve customers, meet business objectives, and successfully navigate external conditions."

At FreightAmigo, we understand the importance of accurate forecasting and flexible planning. Our digital logistics platform provides businesses with the tools they need to predict demand more accurately and respond faster to shifts in consumer behavior. By leveraging our technology, companies can improve their forecasting accuracy and adapt their inventory strategies accordingly.

Daniel Stanton, CEO & Chief Learning Officer at Mr. Supply Chain, advises: "We tend to build our business plans around forecasts, and this is okay when things are relatively stable. But right now our supply chains seem to be unpredictable, so planning needs to consider multiple scenarios."

In addition to demand planning, flexible insurance is crucial for protecting businesses against unexpected losses. With larger container ships, longer transit times, and various geopolitical risks, cargo is increasingly vulnerable to damage or loss. FreightAmigo's comprehensive logistics solutions include options for cargo insurance, helping businesses mitigate these risks and protect their bottom line.

Ryan Horrocks, Sr. Business Development Manager at Flexport, emphasizes: "It's not a matter of IF unexpected loss or damage occurs, but when. I cannot stress enough how important it is to be adequately prepared. Cargo insurance is a great start."

By combining advanced demand planning tools with flexible insurance options, FreightAmigo empowers businesses to navigate uncertainties more effectively and protect their supply chains against potential disruptions.

5. Brands Are in Savings Mode, Looking to Lower Total Landed Costs

The logistics landscape has shifted dramatically in recent years, moving from a scenario of high demand and limited supply to one of oversupply and reduced consumer spending. This change presents both challenges and opportunities for brands looking to optimize their supply chains and reduce costs.

Anders Schulze, VP & Global Head of Ocean Freight at Flexport, notes: "We have moved from an environment with 20% more demand than supply, to a new world where there's 20% more supply than demand. This is a massive opportunity to save costs at every leg of the supply chain."

At FreightAmigo, we recognize the importance of cost optimization in today's economic climate. Our digital logistics platform offers comprehensive tools to help businesses identify and implement cost-saving measures across their supply chains. By providing transparent pricing and the ability to compare quotes from multiple carriers, we enable companies to make informed decisions that can significantly impact their bottom line.

Yossi Sheffi, Director of the MIT Center for Transportation & Logistics, advises: "There is a small, yet real chance of contagion which would lead to a severe recession. Plan to focus on cash management, but be careful about jeopardizing critical suppliers."

Our platform's ability to provide visibility into total landed costs helps businesses balance the need for cost savings with maintaining critical supplier relationships. By offering a range of shipping options and modes, FreightAmigo empowers companies to make strategic decisions that optimize their supply chain costs without compromising on reliability or quality.

Tim Vorderstrasse, Head of Drawback at Flexport, highlights another potential area for savings: "With inflation, a rise in Customs & Border Protection enforcement efforts, and increased tariffs continuing for the foreseeable future, there is a heightened need for cost-saving measures."

FreightAmigo's comprehensive logistics solutions include support for customs clearance and trade finance, helping businesses navigate complex regulatory environments and potentially benefit from programs like duty drawback. By leveraging our expertise and digital tools, companies can identify and capitalize on opportunities for cost savings throughout their supply chains.

6. The Case for Nearshoring & Reshoring - Will This Reshape Trade?

Recent global events have prompted many businesses to reconsider their supply chain strategies, with nearshoring and reshoring emerging as potential solutions to mitigate risks and improve responsiveness. While there's significant interest in these approaches, the reality of implementation is often more complex.

Matt Koivisto, Director of North American Trucking Procurement at Flexport, observes: "If the last few years have taught us anything, it's to plan for the worst and work towards building a robust supply chain that can withstand regional and global crises. Now is an ideal time to move sourcing closer to home."

At FreightAmigo, we understand that supply chain decisions are multifaceted and require careful consideration of various factors. Our digital logistics platform provides the tools and insights necessary for businesses to evaluate the potential benefits and challenges of nearshoring or reshoring initiatives.

Neel Jones Shah, EVP of Air Strategy & Carrier Development at Flexport, predicts: "Shippers will try and diversify geopolitical risk by manufacturing in multiple locations and also make sure that at least some of their manufacturing base is close to their home markets."

While the trend towards nearshoring and reshoring is growing, it's important to note that Asian manufacturing hubs still offer significant cost advantages. Rohit Sathe, Chief Procurement Officer at Sunrise Medical, points out: "Low levels of unemployment, high interest rates, high inflation, and the return to pre-pandemic freight costs will adversely affect the case for near or re-shoring."

FreightAmigo's comprehensive logistics solutions support businesses in navigating these complex decisions. Whether companies choose to maintain their current supply chain structure or explore nearshoring options, our platform provides the flexibility and visibility needed to optimize operations and manage risks effectively.

Yossi Sheffi, Director of the MIT Center for Transportation & Logistics, offers a broader perspective: "The main trend for 2023 focuses on developing trading blocs with supply chains across China, Europe and North America, while regions including Latin America and the rest of Asia are likely to trade with everyone."

As the global trade landscape continues to evolve, FreightAmigo remains committed to providing businesses with the tools and support needed to adapt and thrive in this changing environment. Our digital platform enables companies to maintain visibility and control over their supply chains, regardless of where their manufacturing and sourcing activities are located.

7. The Biggest Challenge and Opportunity for Brands is Visibility

In today's complex and volatile global supply chain environment, visibility has emerged as both the most significant challenge and the greatest opportunity for brands. The ability to track and manage products from sourcing to delivery is crucial for maintaining efficient operations and meeting customer expectations.

Tom Gould, VP of Global Customs & Trade at Flexport, emphasizes: "The biggest logistics challenge or opportunity for brands in 2023 is visibility. Both supply chain visibility as finished products move from shipper to importer, and product traceability 'from dirt to shirt'."

At FreightAmigo, we recognize the critical importance of supply chain visibility. Our digital logistics platform is designed to provide end-to-end visibility, enabling businesses to track shipments, manage inventory, and make informed decisions in real-time. By leveraging our technology, companies can gain the insights they need to optimize their supply chains and respond quickly to changing market conditions.

Bernie Hart, VP of Customs & Trade Business Development at Flexport, highlights the importance of detailed cost information: "Companies must know their predictive landed cost at a product level, calculate actual landed cost, and be empowered to work the variance. Exporters and importers with SKU-level info that can be easily shared and maintained via supply chain partners will be well positioned."

FreightAmigo's platform offers comprehensive tools for managing costs and tracking SKU-level information. Our solutions enable businesses to calculate accurate landed costs, analyze variances, and share critical data with supply chain partners. This level of detail and transparency empowers companies to make more informed decisions and identify opportunities for optimization.

Harold (Hal) Good, President & CEO of Procurement Pros Group, LLC, advises: "The future of supply chains will feature a market and customer-driven necessity to evaluate and mitigate risks. Utilizing increasingly sophisticated software from third-party providers can help you achieve this… Do all you can to identify all potential risks associated with sourcing, production, and shipping. Develop contingency plans to mitigate problems effectively and in a timely fashion."

FreightAmigo's digital platform is designed to support businesses in risk evaluation and mitigation. By providing real-time data and analytics, our solutions help companies identify potential risks and develop effective contingency plans. This proactive approach to risk management enables businesses to build more resilient and adaptive supply chains.