Introduction

As we enter 2023, the global supply chain continues to face uncertainties and challenges in the wake of the COVID-19 pandemic. However, with challenges come opportunities for innovation and growth. At FreightAmigo, we believe that staying informed about emerging trends and expert predictions is crucial for businesses to navigate the complex landscape of global logistics.

In this comprehensive guide, we’ll explore 10 key supply chain trends and predictions for 2023, drawing insights from industry experts and analyzing the current state of global trade. We’ll discuss how these trends may impact your business and provide actionable tips to help you prepare for the year ahead.

Some key facts and data points to consider as we look at 2023:

• It has been 3 years since the start of the COVID-19 pandemic and the major supply chain disruptions it triggered.
• 70% of U.S. manufacturing companies plan to establish or relocate production capacity closer to home.
• 92% of executives express positive sentiments toward reshoring manufacturing.
• 53% of companies plan to increase spending on supply chain automation and systems this year.
• By 2030, the collective income of millennials worldwide is expected to top $4 trillion, with 75% considering it important that brands give back to society.

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

In today’s complex global marketplace, having a deep understanding of your supply chain is more critical than ever. As Bernie Hart, VP of Customs & Trade Business Development at Flexport, notes: “The Frankenstein approach of supply chain operations executing on multiple cobbled-together systems and processes will continue to be a significant bottleneck. Visibility at a SKU level is a requirement from placing the order to final delivery.”

At FreightAmigo, we believe that comprehensive supply chain visibility is essential for success in 2023 and beyond. Our Digital Logistics Platform provides real-time tracking and analytics for your shipments, allowing you to make data-driven decisions and quickly adapt to changing market conditions.

To optimize your supply chain in 2023:

• Invest in better shipment tracking technology, ERPs, and forecasting tools
• Ensure you have visibility into potential risks and strategies for mitigation
• Develop flexible compliance requirements that can grow with your business
• Prioritize partners that offer end-to-end solutions connected via an easy-to-use platform

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

In an unpredictable global economy, supply chain resilience has become a top priority for businesses of all sizes. Lisa Anderson, President of LMA Consulting Group, Inc., emphasizes the importance of agile planning: “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 need for flexibility in your logistics operations. Our Digital Logistics Solution allows you to easily compare and book various shipping options, including international courier, airfreight, sea freight, rail freight, and trucking solutions. This flexibility enables you to adapt quickly to market changes and customer demands.

To build resilience into your supply chain:

• Implement event-triggered planning strategies
• Diversify your shipping routes and methods
• Use air freight for top SKUs during peak seasons
• Work with a forwarder who can help you course correct and reduce delays
• Consider splitting shipments across multiple vessels or planes to mitigate risk

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

In 2023, breaking down data silos and fostering cross-team collaboration will be crucial for supply chain success. 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.”

FreightAmigo’s Digital Platform facilitates seamless information sharing across departments, ensuring that everyone from logistics to finance has access to critical supply chain data. This transparency enables better decision-making and faster problem-solving throughout your organization.

To leverage supply chain data across your organization:

• Implement a centralized logistics platform that allows for easy data sharing
• Encourage regular communication between logistics, sales, marketing, and finance teams
• Use supply chain data to support financing efforts and demonstrate business health
• Provide real-time visibility into shipment status and potential delays to all relevant stakeholders

4. Better Demand Planning and Flexible Insurance for the Win

Accurate demand planning and robust risk management strategies will be essential in 2023. As Daniel Stanton, CEO & Chief Learning Officer of 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.”

At FreightAmigo, we offer advanced tracking and forecasting tools to help you better predict demand and optimize inventory levels. Additionally, our platform allows you to easily arrange cargo insurance, providing peace of mind in an uncertain global market.

To improve your demand planning and risk management:

• Invest in advanced forecasting and inventory management tools
• Develop multiple scenario plans to account for potential disruptions
• Implement flexible insurance solutions to protect against unexpected losses
• Regularly review and update your risk management strategies

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

As businesses face economic uncertainty and inflation, cost-saving measures are becoming increasingly important. 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.”

FreightAmigo’s Digital Logistics Platform helps you optimize your total landed costs by providing transparent pricing and enabling you to compare various shipping options. Our platform also streamlines customs clearance and documentation processes, potentially reducing delays and associated costs.

To lower your total landed costs:

• Regularly review and optimize your shipping routes and methods
• Consider shorter-term air freight rate validity to take advantage of spot market prices
• Explore duty mitigation strategies like duty drawback
• Streamline your documentation and customs clearance processes

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

The trend towards nearshoring and reshoring continues to gain momentum in 2023. Matt Koivisto, Director of North American Trucking Procurement at Flexport, suggests: “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.”

While FreightAmigo primarily focuses on international logistics, we understand the importance of adapting to changing supply chain strategies. Our platform can help you manage shipments from diverse origins, whether you choose to nearshore, reshore, or maintain a global supply network.

Consider the following when evaluating nearshoring or reshoring:

• Assess the total cost of ownership, including labor, transportation, and potential tariffs
• Evaluate the expertise and capabilities of potential new suppliers
• Consider the impact on lead times and supply chain flexibility
• Analyze the geopolitical risks associated with different manufacturing locations

7. The Biggest Challenge and Opportunity for Brands is Visibility

Supply chain visibility remains a critical challenge and opportunity for brands in 2023. 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’.”

FreightAmigo’s Digital Platform provides end-to-end visibility for your shipments, from purchase order to final delivery. Our advanced tracking capabilities and real-time data analytics enable you to make informed decisions and proactively address potential issues.

To improve your supply chain visibility:

• Implement a comprehensive logistics technology platform
• Ensure SKU-level visibility throughout your supply chain
• Utilize data analytics to enhance decision-making capabilities
• Develop contingency plans to mitigate potential disruptions

8. Sustainability is Now a “Must Have” for Supply Chain Leaders

Sustainability has become a crucial consideration for supply chain leaders in 2023. With increasing consumer demand for eco-conscious brands and new legislation requiring greater transparency, businesses must prioritize sustainable practices.

At FreightAmigo, we’re committed to helping our clients reduce their environmental impact. Our Digital Logistics Platform allows you to compare and choose more sustainable shipping options, potentially reducing your carbon footprint.

To prioritize sustainability in your supply chain:

• Assess and optimize your transportation and logistics emissions
• Explore more sustainable packaging options
• Consider implementing circular supply chain practices
• Collaborate with customers and suppliers to improve overall supply chain sustainability

9. Supply Chain Automation Technologies Are Here to Stay

The adoption of supply chain automation technologies continues to accelerate in 2023. Zeid Houssami, VP & Global Head of Air Freight at Flexport, predicts: “Tomorrow’s supply chains will look much more sophisticated as executive leaders learn from being unprepared during the pandemic and will prioritize investments in better technology, talent, and infrastructure.”

FreightAmigo’s Digital Logistics Solution incorporates advanced automation technologies to streamline your supply chain operations. From automated document generation to intelligent routing suggestions, our platform helps you increase efficiency and reduce errors.

To leverage supply chain automation:

• Identify labor-intensive processes that could benefit from automation
• Invest in technologies that complement and augment human workers
• Implement automated data aggregation and reporting systems
• Explore AI and machine learning solutions for demand forecasting and inventory optimization

10. Playing The Long Game Will Be Your Competitive Advantage

In 2023, taking a long-term approach to supply chain management will be crucial for success. Shahin Shafiei, Sr. Business Development Manager at Flexport, advises: “Ultimately, brands should seek partners who understand global trade and the most pressing problems they face today.”

At FreightAmigo, we’re committed to building long-term partnerships with our clients. Our Digital Logistics Platform is designed to grow and adapt with your business, providing scalable solutions for your evolving supply chain needs.

To play the long game in supply chain management:

• Invest in scalable technology platforms that can grow with your business
• Cultivate strong relationships with logistics providers and partners
• Balance competitive rates with long-term partnership value
• Continuously evaluate and improve your supply chain strategies

Conclusion

As we navigate the complex and ever-changing landscape of global logistics in 2023, staying informed about key trends and predictions is crucial for success. By focusing on supply chain visibility, flexibility, sustainability, and long-term partnerships, businesses can build resilient and efficient supply chains that drive growth and competitive advantage.

At FreightAmigo, we’re committed to helping you navigate these challenges and opportunities. Our Digital Logistics Platform provides the tools and insights you need to optimize your supply chain, reduce costs, and stay ahead of the competition. Whether you’re shipping documents, parcels, or bulk goods, our comprehensive solutions can help you streamline your logistics operations and achieve your business goals.

As you prepare for the year ahead, remember that adaptability and innovation will be key to success. By embracing new technologies, prioritizing sustainability, and fostering strong partnerships, you can position your business for long-term growth in an increasingly complex global marketplace.