Learning from the trends of 2023, let's take a proactive stance for the challenges and opportunities awaiting us in the upcoming year.
Natural Disasters, shipping delays, worker shortages, geopolitical conflict - we've certainly navigated some choppy waters during 2023. To recap, here’s some of the disruptions that added strain to supply chains in APAC in 2023.
And this list is by no means exhaustive. With such a line-up of disruptions, it’s no surprise that McGrathNicol Advisory published an article warning Australian business leaders about the pitfalls of overconfidence in dealing with supply chain risks.
By nature, risks are unpredictable. So, it’s imperative that leaders mitigate, adapt to, and learn from both forthcoming risks and existing challenges.
74% of consumers have reduced their nonessential retail spending to better navigate financial constraints. A decrease in cargo volumes, brought about by rationalized consumption patterns and destocking practices, has set the stage for an anticipated oversupply in the market.
Due to ongoing US-China trade tensions, rising labor costs, and concerns about potential disruptions similar to those in the COVID-19 pandemic, brands are actively diversifying their global supply chains. This process typically requires over two years, suggesting an uptick in production in alternative regions in 2024, and more significant transitions are on the horizon for 2025.
The capacity of new–build vessels, slated for delivery through 2025, increased to 2.95 million TEUs. This surplus, along with a decrease in demand, has the potential to spark intense competition and price decreases, posing a risk to carriers' profitability over the long term.
Escalating geopolitical tensions in 2023 exerted pressure on APAC supply chains, leading to shifts in trade patterns and delays. Global supply chains issues, including the war in Ukraine and geopolitical tension with China, are costing Australian companies $11 billion a year, according to new analysis by TMX Global.
In the PwC 25th Annual Global CEO Survey:
With these new emerging risks, it's evident that traditional approaches alone are insufficient. Now is the time to take proactive measures and embrace innovative solutions to protect your supply chain from these challenges.
The Australian Industry Groups (Ai Group) 2023 survey of Australian CEO Expectations found that 88% of respondents are investing in measures to reduce their supply chain vulnerabilities over the coming 12 months.
Don't be left all at sea in 2024. Arm yourself with the right advice and technology to better manage supply chain disruptions by contacting our team.
Stay in the loop by following our LinkedIn page. Next week, we're sharing our advice and predictions for 2024, alongside resources to aid in your supply chain planning for the new year.