As we continue to face the challenges of the last several years, from pandemic to supply chain disruptions, 2023 will face its own additional unique set of circumstances. In particular, the e-commerce sector will look to accelerate growth in what is likely to be a difficult economic environment.
How does supply chain technology fit in and what areas will see the most impact from new technologies? The team at Stord provided its outlook for the next year with particular emphasis on how e-commerce businesses can benefit across its supply chain tech stack.
Where will supply chain & logistics tech drive the biggest impact on e-commerce?
Supply Chain Visibility
Supply chain tech will continue to grow in aspects of visibility, sustainability, and flexibility. Yep, those are buzz words that you will read in any press clipping talking about "the supply chain."
Thankfully for logisticians, we've seen a greater acknowledgement of "the supply chain" over the past three years, than ever before. Supply chain used to be part of the back office. Almost no one focussed on what was happening and how products got from place to place.
That is changing thanks to supply chain tech. As more and more technology becomes available, conversations around supply chains will continue to impact consumer buying tendencies, making it all the more important for brands to have a grasp on their own supply chains, to prove to consumers what is exactly happening. Technology will certainly help brands accomplish that goal of visibility across their supply chains. The earlier a brand adopts supply chain technology, the faster its operations will improve and revenues continue to grow.
- Alex Kent, Director of Sales & Supply Chain Therapy Podcast Host
Reporting & Analytics
I believe supply chain technology will be the cornerstone of e-commerce business in 2023. Especially with the existing global supply chain issues, brands need accurate and robust reporting, analytics, and tracking systems in order to adequately plan for successful business execution.
- Amy Cooper, Health & Beauty Category Leader
Cost-effective System Deployments
Given the macroeconomic climate, e-commerce brands need to focus on growing profitably and simply cannot afford to spend their limited resources on 10+ technical solutions to try to run their supply chains. Spending more than six figures on service fees for 9 month logistics software deployments can't continue. Brands will need to focus on finding partners that make it easy to deploy the right technology for their businesses that can deliver immediate ROI.
- Sarang Damle, Director of Product, OMS
Automating Fulfillment Operations
Technology will continue to drive automation that reduces cost, accelerates the speed of delivery, and drives increased visibility. I believe the biggest impact will be seen in fulfillment automation where the ROI is increasing due to challenges in staffing for fulfillment and delivery.
- Bradley Weill, VP Product
Parcel / Last Mile Optimization
This coming year, we’ll see supply chain technology do more to optimize parcel costs and inventory levels, while providing consumers more choices on delivery speed and sustainability.
- Sean Henry, CEO
Supply Chain Tech Stack Optimization
Taking a realistic/pessimistic case that we'll enter a recession, 2023 will be the perfect time for e-commerce companies to optimize their tech stacks without any tradeoff of growth expectations. Cost reductions and efficiency improvements will be paramount as companies seek to shore up the bottom line.
- Mike Ramos, Chief of Staff
Balancing Customer Experience with Costs
Brands are continually being pressured to improve the overall customer experience, while also being pressured to reduce operating costs. Savvy supply chain leaders will turn to technology to work towards these goals.
- Brad Disher, Senior Account Executive
Focused Logistics Technology
I think supply chain technology products and providers are very segmented by ideal customer profile (ICP) echelons. There are key players at each level with a price point that reflects what their ICP is willing to pay. As e-commerce businesses grow and expand, they will either require their tech partners to grow with them or be forced to move up market to more expensive and robust products that meet their needs.
This is a process they may have to repeat multiple times throughout their journey. Supply chain technology providers who can serve multiple ICP levels with offerings and pricing for all, along with the flexibility to evolve with their customers will be ultimately successful.
- Josh Monski, Software Sales Engineer
New Operational Needs
Covid has revealed the need for better visibility, optimization and efficiency. Technology that can deliver all of those attributes is going to be the new requirement!
- Staci Flanders, Senior Account Executive