Supply chain & logistics

1. Disruptions in logistics

   Logistic disruptions are expected to continue well into 2023 and beyond, particularly for imported goods — customers can anticipate higher costs and longer waits. The pressure is on companies to prepare by restructuring supply chain flows, expanding their inventory storage capabilities closer to customers and devising solutions to improve last-mile deliveries and returns.

2. Revamped supply chain strategies

   The pandemic — the ultimate stress test — set off a wave of change in supply chain management, and risk evaluation has jumped up the agenda. Manufacturers are adding backup suppliers, rethinking where they want to source and build products, redesigning equipment and investing in automation. Startups with shiny digital platforms, to help all aspects of the chain run smoother, are profiting. Examples in Europe include cargo.one, Sourceful, Vector and Adnavem.

3. A boom in automation investments

   Over the past 18 months more companies have sought to automate key nodes in their supply chains, from warehouses and manufacturing plants to corporate office buildings. That can mean applications of cognitive planning to monitor the whole supply chain in real time, AI-driven predictive analytics and even blockchain tech to add transparency and security.

4. A shift in commodities

   Companies are adopting various strategies to manage commodity pricing, including hedging and price risk management. They’re also exploring lower-cost alternative sources and more sustainable materials. Startups are leveraging data and analytics in commodity pricing to suggest adjustments for procurement strategies. This can help customers reduce costs and improve overall supply chain efficiency.

5. Old industries may need generational shift

   There’s lots of trial and error as companies replace paper trails with new digital systems. Tech both solves problems and introduces new ones: cyberattacks on supply chain software, for instance, jumped 650% between 2015 and 2019, according to software developer Sonatype. A lack of training is another factor holding back change: in some instances, successful adoption may take a generational shift. Companies that can best attract a digitally native workforce, then, will hold an edge over competitors.

6. A green grilling for supply chains

   Investors, and not just the climate-conscious ones, increasingly want to know how exposed their portfolios are to environmental risks. Getting to net zero means companies need to figure out their Scope 3 emissions — the greenhouse gases emitted throughout their supply chains. For large companies, the complexity here is mind-bending and usually requires the help of specialist services like the UK’s Emitwise and Germany’s Root Global. The hope is that companies, when armed with better data, will use their buying power to enforce greener standards.

Who early stage startups are up against