The supply chain is the lifeblood of all businesses. It is essential to understand the meaning of the supply chain and how its components can help you run your business smoothly. A well-adjusted supply chain will ensure timely delivery of services and products. Consumer demands are constantly changing, and the supply chain was also severely disrupted during the pandemic. Hence, not only should you read up on the latest statistics but also be updated on the current trends influencing the supply chain. 

Here are the top trends for supply chains for 2022 and beyond. You can ensure your company’s adaptation to these changing markets by staying updated on the supply chain trends. 

1. Circular Supply Chain is The Future Trend

It is predicted circular supply chains will soon take over linear supply chains. A circular supply chain meaning the manufacturers will start refurbishing products to resell them in the market instead of making new ones. Businesses are now choosing to break down products and use them as raw materials to combat the increasing cost of materials and their scarcity and reduced availability. 

2. The Future is Green

Consumers are making an effort to be environmentally responsible. There are a few groups that work towards creating awareness about the green environment and also advocate for a greener supply chain system that causes less harm to the environment. Greenhouse gases are largely emitted during transportation and when electricity is used during production. 

Hence green logistics are becoming immensely popular among companies. Many microfinance loans are also offered to companies who work with the environment and create organic and climate-friendly products. 

3. Workforce Issues and Globalization

Businesses can expect a lot of changes in labor supply. The workforce is soon becoming globalized. An earlier study had predicted that most manufacturers would have multi-country production by 2020, but that was affected and delayed because of the pandemic. 

Today, businesses require knowledgeable workers, and hence the workforce is becoming globalized. Companies want their workers to be able to handle complex procedures like procurement, analytics, and other services. A lot of the workforce that is emerging right now and is driving the labour component of the supply chain does not have the expertise or the training to handle complex processes. Hence, companies are constantly hiring people from all over the world who can handle their tasks with ease and experience. 

4. Integrated Supply Chain

The future will see more components continuously being added to the current supply chain as businesses are looking to integrate third parties and make partnerships. The supply chain meaning constantly evolves as the market evolves. Collaborating with a third party can help businesses improve their service and reduce their costs. 

5. Short Product Life Cycles

The clock is speeding, and the lifecycle of products is reducing; hence the supply chain must become more efficient and faster. Many businesses use one supply chain for all their products, even though the product life cycles are different. In the coming years, businesses will be required to develop separate supply chains so they can accommodate different lifecycles and yet make a profit. 

6. Elastic Logistics

Supply chains should be lean, responsive, and flexible to accommodate market fluctuations. Hence, more companies are adopting flexible logistics. Elastic logistics let the supply chain shrink or expand easily according to market demands. Artificial intelligence is one such technology that lets supply chains adjust with the least disruptions. 

Elastic logistics offer flexibility to many components in the supply chain, such as carrier space, transport schedules, route optimization, and container usage. If the companies can adjust these components, they can handle issues such as unoptimized space and overstock better.