In a few weeks, some of us will be gathering to celebrate the new year, although “celebrate” might be too positive a term for the supply chain industry! Consistently pondering about the future is a global preoccupation at the moment, and supply chain disruptions have often played a supporting role in our collective concern.
Here’s our prediction for the future of supply chain in 2022: Everything will change in 2022, and supply chains will reach a turning point with tremendous potential for innovation.
What will this innovation look like? And how can supply chain planners seize the day, no matter what circumstances? To find the answer to these questions, here are some theories that contain powerful, actionable advice to lead you into the new year on a positive note.
The fact is that COVID-19 has accelerated the evolution of the supply chain where leading organizations have used the opportunity to innovate and create new models to not only react, but also leverage supply chains as a competitive advantage. Let’s take a look at some common trends:
1. Supply chain risks will gain more attention
The supply chain issues that we’re currently facing will encourage businesses to be less dependent on single-source solutions and forward-thinking organizations seek open architecture solutions that offer increased choice and flexibility based on requirements and current availability. If you’re on the lookout, you might want to check out Supplymint.
But the important thing is that there’s more to supply chain issues than the current shortage of goods and materials. Even cybersecurity will gain attention. So, make sure to scrutinize your cybersecurity measures, standards, and certifications.
2. Sustainability is a driver for supply chain strategy
Sustainability spans 3 key pillars: Environmental, Social and Governance (ESG). With net-zero commitments being adopted by businesses in several countries, supply chains will need to deliver impact on all 3 dimensions to make businesses competitive and mitigate external risks. The logistics segment will switch to alternatives like zero emission fleets in order to reduce GHG emissions. Similarly for procurement, responsible sourcing will become more importance and organizations will need absolute transparency and traceability from vendors.
Also Read: The State of Supply Chain Risks Today
3. Video analytics will become more viable for large-scale deployments
The demand for video analytics solutions in the past few years has been strong and with the rising AI techniques such as machine learning and deep learning, organizations are eager to invest as IT companies continue to bolster the power of analytics. But, because complex video analytics still requires very powerful servers for adequate data processing, deploying analytics at an enterprise level wouldn’t always be practical. So, as we move into 2022, we believe that video analytics applications will mature in ways that make them easier and more economical to deploy at scale.
4. More organizations will migrate to using hybrid cloud
As more businesses take their chances at trialing cloud applications, they’re understanding the benefits of hybrid cloud, which is set to produce a greater momentum in the adoption of cloud technologies in 2022. This could also include implementing digital evidence management systems to boost data privacy compliance, deploying a cloud video management system to secure a high-risk remote location, or installing a PIAM (physical identity access management) system to better track COVID outbreaks in a building.
Recommended Read: How to Achieve the Goal of Sustainable Supply Chains?