2023 continues to present challenges stemming from the global Covid-19 pandemic, along with geopolitical tensions, climate-related events, cybercrime, and economic factors. Wars, inflation, recessions, and Brexit further complicate global supply chains that support manufacturing and industrial activities.
However, amidst these challenges, there lies an opportunity for leaders and disruptors to emerge by harnessing innovative technological solutions. Automation and Internet of Things (IoT) technologies offer significant potential to drive efficiencies, reduce waste, and combat fraud within supply chains. Companies that successfully navigate these uncertain times will be agile in responding to evolving circumstances while leveraging technology to gain end-to-end visibility and control over their supply chains. Experts predict that by 2025, IoT could generate up to $11.1 trillion a year in economic value.
Overcoming ongoing supply chain disruption in 2023 requires embracing innovation and leveraging technological advancements. Automation streamlines processes, optimizes inventory management, and enhances operational efficiency through the use of IoT-enabled devices and sensors. Having real-time insight to supply chain performance can allow for rapid and proactive decision-making.
In addition, leaders in the manufacturing industry will prioritize resilience and agility. They will seek alternative sourcing options, diversify their supplier base, and establish robust risk management strategies. In fact, Modeling by the McKinsey Global Institute suggests that, over a decade, the average company in the S&P 500 can expect that supply chain disruptions will cause losses equivalent to approximately 42 percent of one year’s earnings. #2 By building adaptable supply chains capable of responding to unforeseen disruptions, these companies can mitigate the impact of geopolitical tensions, climate-related events, and other challenges that arise.
Gaining end-to-end visibility and control over supply chains is essential for success. Cutting-edge data analytics, artificial intelligence, and blockchain technology provide comprehensive insights and traceability, fostering transparency, minimizing vulnerabilities, and strengthening trust throughout the supply chain network.
Beyond 2023, successful manufacturers will rise above supply chain disruptions by embracing innovation and technological advancements.