international article

8 Delivery and Supply Chain Trends to Expect in 2023 Deborah Laloum, BRNGG

Staying on top of delivery and supply chain trends will be critical for all retailers who want to remain leaders in 2023.

If there’s anything this year has taught us, it’s the challenge of making any supply chain and delivery predictions in such a dynamic economic and political environment.

Increases in fuel, disruptions in supply chain, and increased labor costs have severely impacted retailers’ margins. It has also contributed to a cycle of inflation over the last few years that includes a jump from 1.2% in 2020 to 4.7% in 2021. It’s getting even worse with the International Monetary Fund predicting a worldwide inflation rate of 8.8% in 2022.

These factors are influencing both businesses and consumer behavior. On the consumer side, higher prices and erosion of real wages by an average of 8.5%, have led to less overall spending and an increase in online shoppers looking only for deep discounts and special offers.

The flip side for retailers is learning how to cope with increased competition, supply chain uncertainty, higher delivery costs and shrinking margins – all while still trying to satisfy consumers’ desire for low prices, omnichannel delivery options and a smooth customer experience.

Larger retailers such as Macy’s and Walmart are better equipped to weather the storm caused by lower sales growth and lower prices. For other retailers, however, it’s significantly more challenging.

According to a report from Alignable, due to a significant decrease in orders, labor shortages and supply chain uncertainty, 59% of small retailers could be shutting down over the next year.

With that background in mind, here are the top 8 delivery and supply chain trends that retailers should prepare for in 2023.

Top 8 Supply Chain Trends for 2023: 1. Rising supply chain and delivery costs

2. Difficulty in maintaining customer loyalty

3. Acceptance of managing complex operations

4. Collaboration between online retailers

5. Diversification of delivery partners

6. Digital transformation

7. Reducing environmental impact

8. Adoption of holistic technology platforms