Datex 2023: An Inside Look at Supply Chain and Logistics Trends For 2023
Take a look at the most important supply chain logistics trends for 2023
As the world moves through 2023, specific logistics and supply chain trends have emerged. This year, these trends will drive businesses to make significant strides that will help them weather supply chain challenges such as geopolitical disruptions and worldwide product shortages. For example, many businesses have made changes to their supply networks by implementing multiple sourcing strategies for raw materials and moving from global to regional networks. Other businesses will implement advanced technology to automate visibility, so that they can focus on improvements in supply and demand planning.

All in all, chief supply chain officers and supply chain managers have a chance to push business towards success. Here is a look at supply chain logistics trends to be on the lookout for in 2023.

Cyber Security Will Positively Affect Supply Chain Operations

The digitization of supply chain processes is positively impacting supply chains by enhancing productivity. However, it is also opening more opportunities for an increased amount of cybersecurity attacks. Now that many supply chains are in crisis, these cyber attacks have become more severe.

Looking into 2023, supply chain executives and internet technology professionals will continue to invest in cyber security measures that deal with the privacy of data such as:


Personal information

Proprietary records

Employees with physical or virtual access to information systems, software codes, and data storage are at heightened risk for cyber security attacks. Because of that, supply chain experts feel that one of the biggest cyber-security challenges is educating the employee workforce of the proper ways to handle security threats. Therefore, education can make the workforce one of the greatest resources against cyber-attacks as well.

For example, entire supply chain networks can become infected with malware due to an employee clicking the wrong email and downloading the malicious program. With cyber-security training, employees can learn how to identify various forms of malware and what to do in case of exposure.

To keep employees engaged with compelling, narrative-driven content about the latest cyber security threats and resources, businesses will leverage learning methods such as gamification. This technique can offer employees brief and consistent content and exercises that focuses on specific threats employees face.

Datex Fast Fact

The use of stolen credentials is listed as the top action in supply chain systems security breaches. Tools such as password managers and virtual private networks (VPNs) can be used to enhance credential security.


Businesses Will Partner For Cyber Security Training  

Executives feel that developing cyber security training among their employees is not enough, however. According to the National Institute of Standards and Technology (NIST), the global integration of supply chains has put third party logistics companies and vendors at an elevated risk for cyber-attacks. Today’s supply chains are interconnected in such a way that a threat to one business partner can mean a threat to the entire supply chain. This is one reason why 90% of logistics professionals say that visibility technology is vital to their cyber security success. Visibility enables businesses to know in real-time what is going on across their entire supply chain network at any time.

In 2023, businesses across all industries that operate global supply chains will collaborate with supply chain partners to develop risk management strategies that can build cyber security awareness. This will not only improve supply chain resilience and keep companies safe, but also help the entire economy avoid disruptions.

Datex Fast Fact

The use of stolen credentials is listed as the top action in supply chain systems security breaches. Tools such as password managers and virtual private networks (VPNs) can be used to enhance credential security.


Sustainable Supply Chain Business Logistics

Environmental and social responsibility has increased in importance across the supply chain c-suite. So much so, that businesses are implementing initiatives to meet supply chain sustainability goals. These goals include reducing their carbon footprint, pollution, and waste at all stages of the supply chain.

Ultimately, sustainability efforts boil down to meeting customer demands and expectations. This is because many consumers are purchasing products based on a business’s sustainability efforts. Consumers are paying attention to not only what they buy but who they buy from. What began as product or packaging sustainability has transformed to include raw materials sourcing and business logistics. In fact, in a recent survey 39% of consumers said that they regularly make purchasing decisions based on a company’s or product’s impact on the environment.


Datex Fast Fact

Location data can be used to sustainably source raw materials by verifying products points of origin.


Location Intelligence Will Help Meet Sustainability Goals

Businesses are utilizing various advanced technologies such as artificial intelligence (AI) and machine learning (ML) for location intelligence. Location intelligence can enhance businesses decision making across digital supply chain networks, which can contribute to meeting sustainability goals. For instance, location data can help businesses optimize their supply chain operations by suggesting loads to combine or the best mode of transportation to utilize with the least emissions. This will be beneficial in 2023 as supply chains shift from road to rail. For example, businesses not only need to know when and where they can utilize rail, but also for what products in order to manage customer expectations.

Companies that are not climate neutral risk becoming non-compliant as environmental regulations continue to evolve. This can negatively impact their overall profitability. In many parts of the world, fuel efficiency and carbon emissions standards are already in place. However, with increased regulatory and consumer pressures to reduce pollution and gas emissions, businesses are utilizing electric transportation fleets.

3PLs and shippers that are introducing electric vehicles into their transportation fleet will especially benefit from location intelligence in 2023. Supply chain managers can use location data to not only plan routes that minimizes truck idling to reduce emissions, but also informs drivers of nearby battery recharging stations. This will be particularly helpful for last-mile delivery operations.


Digital Twins for Warehouse Simulation

With the help of artificial intelligence (AI) and machine learning (ML), digital twin technology can be used to simulate warehouse environments. In effect, digital twins can bring a new level of awareness across the entire warehouse logistics landscape.

Warehouse simulation consists of creating virtual replicas of objects or processes to reproduce real-world behaviors. In warehousing logistics, this virtual representation lets a business simulate warehouse layouts as well as operator and product flow. By creating a virtual supply chain model to analyze problems, businesses can predict future impacts as well as suggest reaction plans. This enables a competitive advantage.

Due to the 3D representation of the facility, warehouse operations managers can visualize potential logistics processes that can help detect inefficiencies and possible harmful scenarios. In addition, warehouse simulation can help businesses spot improvement opportunities that can aid in facilitating strategic decision making. For example, supply chain operations managers can implement new picking methods or predict how facilities will perform if other warehousing and storage methods were to be implemented.

Supply Chain Control Towers for Digital Optimization

3PLs and shippers are under more pressure than ever to find ways to be more competitive while simultaneously keeping costs down and improving customer service. A trend that supply chain operations managers believe can accomplish these things are supply chain control towers. In 2023, more businesses will utilize supply chain control towers to digitally optimize their value chain due to their ability to mine for valuable data insights and accelerate decision making.

Supply chain control towers enable precise views of incoming and outgoing shipments. With control towers, businesses can enable location intelligence that offers enhanced shipment tracking as well as predictions about when shipments will be arriving. If problems were to arise, shipments can be redirected or moved to other transportation options automatically. Additionally, the enhanced level of visibility and data insights enabled by supply chain control tower technology can generate higher levels of customer satisfaction for logistics providers and their customers.

For example, 3PLs and shippers that work with multiple suppliers can have difficulties obtaining shipment updates. This not only reduces operational efficiency but also increases risks of error. By utilizing supply chain control towers to digitize the supply chain process, businesses can collect data over the life span of entire loads. This information can then be shared with customers or business partners throughout the supply network in real time, enabling a high-level of supply chain transparency.

Logistics Elasticity for a Competitive Advantage

Factors such as omnichannel, seasonal availability of products, and reverse logistics has compelled businesses to implement elastic logistics to remain competitive. Elasticity is essential in all stages of the supply chain because it guarantees stock availability for consumers. In addition, elastic logistics can lower cost in manufacturing, storage, and transportation business processes. With elastic logistics, businesses can adapt their warehousing or transportation operations to unexpected changes without altering their throughput.

Elastic logistics also enables businesses the flexibility to adapt order picking to the current demand, so products can be shipped from a wide variety of distribution centers, warehouses, or even physical stores. This enables businesses the ability to gain and maintain a competitive edge in the face of supply chain disruptions.

Cloud Computing Will Redefine Effective Supply Chain Management

Businesses are constantly looking for ways to improve their operations and gain advantages over competitors. To do so, businesses must be able to store and share data across their entire network. In 2023, supply chain managers will continue to implement cloud computing solutions such as software as a service (SaaS) to communicate data and digitize their supply chains.

Fostering and maintaining a responsive and effective supply chain demands logistical efficiency. Human workers once managed every detail of logistics operations. Today, cloud computing and big-data analysis are enabling businesses to digitize and automate the most important tasks, which include:

Inventory management

Supply chain forecasting

Sourcing and procurement

SaaS has transformed the ways businesses employ supply chain management strategies across the value chain. SaaS software are typically web applications designed, hosted, and managed by a third party such as software development companies Amazon or Microsoft. Microsoft’s Azure is one of the most popular SaaS utilized by third party logistics providers (3PLs) and shippers.

Due to the flexibility of SaaS, they have become essential in developing and implementing supply chain management strategies, especially for 3PLs and shippers. They can be used for a wide range of business processes, from email services that focus on content delivery to warehouse management systems. 3PLs are even using applications such as drayage dispatch and transportation management.

For example, SaaS automated dispatch management systems are being utilized to link ocean carriers and 3PLs. The system, which can be utilized through a mobile app or virtual desktop, communicates critical pick-up and delivery data in real time that can:

Reduce transportation costs

Manage container equipment

Shift business to the most efficient vendors

Increased Importance of Last Mile Delivery

Order fulfillment has become one of the most critical aspects of the supply chain. In 2023, the supply chain c-suite will offer more focus on the last mile, with an emphasis on accuracy and improving the customer experience.

Today’s consumers expect next-day delivery. Many even want same-day delivery, sometimes within a two-hour window with total visibility. Although many businesses offer these delivery options, they are failing to meet customer expectations due to poor delivery performance. In fact, in 2022 nearly 73% of consumers said they experienced a delivery failure.

Logistics professionals will utilize advanced technologies that leverage AI and predictive analytics to ensure that deliveries make it to the right place at the correct time. In addition, businesses will also improve the accuracy of last-mile delivery services by offering a wide range of delivery options, real-time shipment tracking, as well as proof-of-delivery information directly to the customer.

Datex Fast Fact

In today’s supply chain, accurate last-mile delivery is vital to:

Building customer loyalty

Gaining a competitive advantage

Growing market share.


Consumer habits are evolving. High-quality products and rapid delivery are no longer mutually exclusive. Cloud technologies are making communication faster and clearer. In short, future supply chains are here. As the global environment changes, supply chain executives and managers are keen on optimizing the supply chain. To increase supply chain performance, logistics professionals will continue to implement supply chain management systems and strategies that can create a more agile, sustainable, and resilient supply chain for their business in 2023. These solutions are necessary to improve efficiency, mitigate risks, and enhance the cost effectiveness of business operations.

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Industry Specific WMS


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