To build on goals for the year 2022 we reflected on the trends that have dominated in the year 2021. We also took into consideration a general forecasting of trends leading us into 5-year and 10-year goals. What has changed? For most organizations around the world sustainable goals are more important now than ever.
There is an emphasis on environmental change and social change. This is not just limited to climate change or social well-being. Businesses have been incorporating these ideas more diversely into the day to day running of operations – from using energy efficiently, managing waste properly, and having responsible practices across the value chain.
The focus on sustainable change has not only helped us get closer to the Paris agreement, but has also helped businesses with increased visibility, control and other positive outcomes such as decreasing costs and reputational risk.
DID YOU KNOW?
The United Nations Climate Conference, commonly known as COP26, concluded with the Glasgow Climate Pact as its final accord. The takeaway for enterprises is that supply chains will come under scrutiny. The Task Force on Climate-Related Financial Disclosures (TCFD) requires organizations to understand their climate-change risks and develop governance, strategies and targets to manage these risks.
Consumer buying behavior is also more conscious now. The year 2021 saw lots change. Economies were drastically altered, the ripple effect of a multitude of variables.
Everything from politics to the pandemic, even the rise of social media and Tik Tok trends – people are being more vocal about causes, and humanity seems to have had a resurgence. And to that end there is an increase in buying patterns towards companies that promote sustainability, social causes, and where CSR has truly caught the spotlight.
Technological advances are also taken into consideration. In the year 2021, we saw the rise of Hyper-accurate positioning technologies where anything can be traced to within a few centimeters or millimeters. This opens up possibilities from landslide warnings to delivery robots. There are also a few projects currently in development like a more reliable lithium battery for electric vehicles to run longer, and expanding AI capabilities to multitask and develop its senses to be more humanlike.
With the end of the year approaching it is only time to embrace change and lead the way for a revolutionary 2022.
Plan ahead for the Impacts of Supply Chain Automation and Migration
The supply chain is directly dependent on ERP models where AI and automation are constantly improving. Advanced technologies make business models leaner and mass migration to automation is currently peaking. This creates volatility in supply chain labor dynamics as the projections of a displaced workforce are significant.
To this end companies with significant visibility into their supply chains can urge stakeholders to develop clear and concise plans to support a sustainable workforce transition.
Digitizing Assessment and Engagement of Supply Chain Data Analytics
Gartner projected that 50 percent of supply chain organizations would invest in applications that support artificial intelligence and advanced analytics capabilities by 2024. However, the COVID-19 pandemic has increased the need for supply chain organizations to look for new tools that would help them gain better supply chain visibility, make better and faster decisions.
Supply chain leaders have the opportunity to reconsider how they collect and interpret supply chain information to positively impact labour issues, working hours and wages which are likely traits of supply chains that are disrupted by automation.
Leaders, while planning for the impact of supply chain automation, need to lead their teams towards a focus on corrective plans towards a sustainable transition, a balance between automation and the human workforce.
Embedding Climate-Smart Actions in the Supply Chain Plan
Supply chain leaders have the opportunity to reflect the sentiments of consumers and incorporate more efficient practices like seeking alternate resources where necessary, switching to new technology that is climate friendly, and encouraging a more balanced supply chain environment without labor disruptions.
It is also important to establish a deeper, long term collaboration with suppliers that also have migrated to more sustainable operations.
If you would be interested to discuss how these trends will shape your supply chain, feel free to connect with us. Book a consultation and our specialists will reach out to you shortly. We would love to show how Monitor Pro can help your team and leadership plan for multiple possible supply chain futures.
