A supply chain is a complex network of all the parties, resources, activities and technology involved in the creation and sale of a product. It is a dynamic network and we will share the newest developments and trends to keep you in tune.
Supply Chain and Consumer Industry
Experts believe that reinventing the approach to customers should be one of 4 focus points for supply chain executives already today to outperform competitors over the next couple of years. Focusing on customer satisfaction might soon not be enough. Enabled customers (e.g. ones that are provided with gift wrapping upon delivery, which saves time and effort) are twice as willing to repurchase as customers who were merely satisfied. Read more about 3 other equally crucial areas at Gartner, Online 2023.
The environment, we are living in today, is much more volatile than what we have seen in the last 20 years. The invasion into Ukraine, Omicron, lasting inflation, supply chain crisis, energy crisis, the return of COVID-19 in China. Fashion suppliers and brands are facing significant economic and geopolitical challenges. Business has to rethink tech from front end to back end. Investments in the digitizing the whole supply chain end to end is a big topic in fashion industry. Brands have to be ready to dress their consumers according to their demand. Many consumers are in "traveling mode" after the pandemic. Sustainability demand is as high as ever. To stay competitive experts, recommend not to put all eggs in one basket. Business has to be active in different geographic regions and across different product categories. Read more at McKinsey & Company, Online 2022.
Supply Chain and Heavy Industry
Chemical industry, as well as other industries, has experienced the perfect storm of supply chain disruptions over the past few years. Leaders are now building in flexibility for faster response to critical risks. Recent developments show that supply chain disruptions are much more frequent now and causing more problems. Therefore, the chemical industry organisations need to be better connected with their ecosystem (downstream and upstream) to spot the early signs and react faster to disruptions. Read more at Forbes, Online 2023.
The world economy is still rocky. A continuing war in Ukraine. Growing tension between China and trading partners. Unrest in Sudan. The unstable geopolitical arena contributes to the uncertainty and constraints in the supply chain. Experts anticipate no supply chain normalcy in the near future. Read more about the current challenges and the recommended steps to take in order to improve the supply chain excellence at Forbes, Online 2023.
Post-Covid economic recovery in chemical sector is now challenged by the war in Ukraine. European chemicals sector suffers most, given its dependence on supply from Russia and Ukraine. This dependancy affects inputs, supply chain, operations and end-markets. Longterm implications are harder to predict, but could include new manufacturing hubs and acceleration of chemical recycling. Read more at Bain & Company, Online 2022.