It’s time to be proactive about your supply chain management as 2023 looms right around the corner!
It is without a doubt that the past two years have been a challenging time for most businesses. Shippers have been reacting to changes in their supply chain as quickly as possible and putting in long hours to maintain their businesses like they did before disruptions began. Luckily, some predictions are pointing to 2023 being somewhat normal again. Of course, every shipper is likely to have a different definition of normal. This understanding of normal does beg an important question; That is, is it possible to make supply chain predictions and prepare for 2023 if ‘normal’ – whatever that means – is coming back?
The short answer is yes. There is a lot of reliable information out there that utilizes market trends and freight data that could help shippers prepare for their most likely future. We’re talking about being proactive, and I’m suggesting that with the right preparation, shippers can adjust from being reactive to the market to beginning to create long-term outcome plans. Optimistically, we want shippers to stop putting out fires and start maximizing strategy again in 2023.
So how can they do that?
Having reliable information about supply chain trends can help you as a shipper and your transportation partner prepare for the specific freight economy you’ll be most impacted by. These reliable predictions are best made using publications from industry experts, economic data predictions, and shipper experiences in industries analogous to your own. If you’re partnered with the right logistics company, they will help you collect and interpret information about the current market so you can make the best decisions for your business.
Still, I’ll summarize the most important pieces of market information circulating right now. Today, the consensus is that inventories are currently high and freight movements are low. While this makes the current market for shippers more favorable and provides a much-needed break from high rates of early 2022, the proactive shippers will be utilizing this lull to review their supply chain needs and prepare for the future.
It will be tempting, after seeing lower rates across the majority of modes of transport, to settle in and simply seek the best deals the spot market has to offer. While the spot market may provide short-term benefits, it will not provide shippers with true partners in a changing market.
This brings us to our next important piece of market information currently circulating. Forecasts are showing that there is a significant amount of pent-up demand globally across all industries, and this lull in late 2022 / early 2023 may not last much longer. The idea is to create stability in your supply chain by seeking both the right partnership and proactively paying attention to macro and microeconomics that affect your business.
Be proactive in 2023! Seek stability, and make a plan for how you will deal with future supply chain disruptions. Create a risk assessment for your business, pay attention to the markets, and most importantly, don’t get stuck relying on the spot rate market if your business doesn’t require it.
See you next newsletter!
Bill
