Energy price volatility and supply chain disruption will remain important concerns in 2023, with countries that attended the East Asia Summit 2022 recognizing the need to improve regional cooperation in the face of persistent geopolitical problems, military conflicts, and economic uncertainty.
While there are hints of a reversal in the worldwide chip shortage and a reduction in freight prices from the pandemic’s record-high levels, businesses are not reverting to their old ways of doing business after learning a hard lesson. The unprecedented impact of the worldwide pandemic has highlighted the hazards of supply chain dependencies, prompting firms to strengthen their supply chain resilience to survive any future storms.
Increase supply chain resilience using cloud-based solutions
If it occurs again, companies will undoubtedly want to increase their supply chain resilience, planning for and preparing for the next disruptive wave. The question for them is, what is the best approach to accomplish this? According to a recent survey conducted by a research and advisory firm, 61% of respondents believe that technology is a source of competitive advantage across industries.
The software has always been at the forefront of innovation. Yet, due to geopolitical limits and heightened customs procedures, providers will require assistance delivering innovative solutions quickly.Â
As a result, organizations have needed assistance to combine software and hardware to produce practical solutions. To address these supply chain issues, we anticipate that organizations will prefer cloud-based solutions – with hardware and software already bundled together – rather than managing various connections and waiting for hardware to arrive.
Businesses may boost digitalization while reducing their reliance on legacy systems, which are typically inflexible and expensive to maintain. Businesses will be better equipped to maintain business continuity by responding more quickly and correctly to the requirements of their customers with greater agility and flexibility by leveraging cloud-based solutions to boost their digital capabilities.
AI-powered automation will boost supply chain management operational efficiency
Talent shortages in the supply chain and operations continue to be a major concern across sectors. Fulfillment centers have been operating at full capacity due to the spike in e-commerce caused by technological platforms and the surge in home deliveries that is anticipated to continue even as we approach a post-pandemic era.
Organizations that use AI-based process automation and intralogistics technology to simplify supply chain management will have a significant competitive edge over competitors, such as reduced labor requirements and shorter product time to market.
According to a recent survey by a research and advisory business, 75% of big firms would deploy intralogistics smart robots in their warehouse operations. Smart robots will remove strenuous activities and ease labor limitations by using AI and a mapping system to independently pick, carry, and deliver products inside warehouse and distribution center environments.
AI-based automation, when done correctly, will enable enterprises to reset their operating logistics models with digital capabilities and innovation to boost operational efficiency and effectiveness.
More scrutiny on digital supply chain spending in 2023
From 2022 to 2027, the cloud supply chain market is expected to grow at a CAGR of 11.09%. With the onset of the global pandemic, many firms have changed their supply chain planning and operations by hastening the deployment of cloud-based supply chain technology to account for the amplitude of volatility and the rapidity of unforeseen disruptions.
But, as geopolitical issues and rising inflation continue to strain global supply networks, we expect organizations to consider cost-cutting measures, including more scrutiny of digital supply chain investment.Â
Businesses who are investing more in rethinking their digital supply chain model, such as by using autonomous cloud-based solutions to enhance data visibility throughout the entire ecosystem – stretching from demand to end-to-end inventory, capacity, and auxiliary activities like finance and freight payment – will be more efficient.
The worldwide pandemic has highlighted the increasing necessity for dependable and accessible cloud supply chain systems. To assist enterprises in the Asia-Pacific region in navigating the IT difficulties of post-pandemic recovery, autonomous, cloud-first optimized solutions with the ability to manage the full data protection estate, on-premises and in the cloud, from a single pane of glass are critical. Workflows may be handled more cost-effectively and efficiently by linking the network of systems and data for suppliers, manufacturers, outbound carriers, distributors, and customers with cloud-based solutions.
Businesses are headed for a rough ride, with many experts anticipating a downturn. Organizations in the APAC area must be better equipped to transform headwinds into tailwinds by bolstering supply chain resilience with AI via intelligent cloud-based platforms and solutions.
