Supply Chain

2023 Supply Chain Recovery

by Amernesa Kelmendi

After two uncertain and unpredictable years, 2023 may finally mark a turning point for global supply chain recovery.

Transport costs have accounted for 6-8 percent of total shipping costs in the past. In 2022, though, that rate climbed as high as 10 percent. This increase was caused by a surplus of inventory in logistics, and poor inventory management, which led to a change in consumer purchasing. Since then, businesses have been hoping for the supply chain to return to normal, and in 2023, this hope may become a reality. Growing optimism throughout the industry paired with a surge of new technologies within the world of logistics proves to be a perfect recipe for stability and growth in 2023.

Supply Chain Disruptions

In 2020, the pandemic took everyone by surprise. Offices and businesses shattered overnight, and the global supply chain nearly collapsed. One way to adapt to the sudden change of no longer using person-to-person socializing was to start limiting usual day-to-day activities and working from home. Now with the pandemic slowly fading away, businesses of all sizes are left with the aftermath and a number of other factors that have more recently surfaced. Some of these factors include; The threat of a recession, political tension, technology breaches, and weather disasters. 

Recession Fears– In 2023, signs of an economic recession are becoming increasingly apparent. Some may even argue that the recession has already begun. Supply chain disruption due to a global pandemic has caused a sudden decrease in consumer spending, resulting in a reduction of production and investment that indicates the beginnings of a recession. While it is difficult to predict how long this downturn will last, economists warn that it could be a long and painful recession if steps are not taken to mitigate the economic damage.

Political Tension– The recent rise of geopolitical tensions has caused nations to turn inward and become increasingly skeptical about cooperation and interdependence. Supply chain disruption is one of these significant outcomes, as governments become more protective in their trade and cross-border investment policies. Supply chains that once crossed various countries to source materials would then cause disruptions due to protectionism, increased tariffs, and other restrictive measures. This can disrupt the flow of goods and services across borders, resulting in businesses needing help sourcing materials or selling their products in different markets. In addition, it can also lead to increased production costs for businesses due to the need for re-routing supply chains.

Inflation Inflation could significantly impact operations in the logistics and supply chains of 2023. Inflation always has a direct effect on the cost of goods and services, as well as the price of labor. Inflation is something that can be difficult to predict and manage. Still, businesses need to stay aware of economic trends to anticipate the impact Inflation could have on their operations. In particular, rising interest rates and rising costs of goods and services due to Inflation could have an enormous impact on providing quality products at competitive pricing. Businesses should invest in understanding the economic trends of Inflation to stay ahead of possible rising prices, rising wages, and rising interest rates. 

Technology Breaches– 2023 is expected to bring a new wave of cyberattacks as criminals become increasingly sophisticated in their methods. Cybercriminals are predicted to use advanced technologies such as artificial intelligence (AI), machine learning, and natural language processing (NLP) to launch more targeted attacks on organizations. Data breaches are expected to remain a significant concern for organizations as criminals continue to exploit vulnerable systems and networks. Data protection is critical in today’s digital world.

Weather Disasters–  The extreme global weather in 2022 has significantly impacted our supply chain. This includes wildfires, droughts, and flooding that have caused unprecedented disruption to the system. The effects of this extreme weather have been felt worldwide, and it is likely to continue throughout 2023. Our supply chain has been impacted in many ways, including decreased production and transportation of goods, disrupted delivery schedules, shortages of raw materials and other resources, and higher costs for our suppliers. Carriers take every step possible to ensure that our supply chain remains resilient in the face of these weather-related challenges. They have implemented strategies to reduce impacts on production and delivery times, increased support for our suppliers, and taken steps to secure alternative sources of raw materials and resources where possible. Currently, service companies are working on finding innovative solutions to mitigate any potential disruption caused by extreme global weather in 2023.

Unlike the COVID-19 era, 2023 may bring many challenges for supply chain operations, from economic recession and political tension to technology breaches and weather disasters. Supply chains must be resilient in the face of these disruptions if businesses are to stay afloat. Companies should protect their data, secure alternative sources of raw materials and resources where possible, increase support for suppliers, and implement strategies designed to reduce impacts on production and delivery times. With careful planning, organizations can remain proactive despite adversity, such as global pandemics or extreme weather conditions. By leveraging innovative solutions and utilizing technologies like AI, and machine learning, companies can maintain an efficient supply chain despite external factors beyond their control. 

Supply Chain Trends to look out for in 2023

The Supply Chain Industry has been in a state of rapid evolution for the past decade, and this is expected to continue into 2023. One thing for sure is that as technology advances, supply chains become more complex, requiring businesses to stay ahead of the curve. Companies must be aware of the latest trends and innovations in Supply Chain Management (SCM) to remain competitive. Some supply chain trends that will be valid for a prediction in 2023 are sustainability and resilience. By understanding these upcoming Supply Chain Trends and leveraging them strategically, companies can ensure they remain at the forefront of their industry.


Sustainability-focused business strategies will become increasingly important for companies to remain competitive in the years ahead. By 2023, companies can expect more accurate carbon tracking for supply chains through data from actual production processes rather than estimates. Moreover, a shift towards circular commerce will likely emerge—a business model focusing on sustainable management of unsold inventory, returned merchandise, and post-consumer recycling and resale. 


Responding to previous disruptions, companies are now looking for ways to build resilience in their supply chains. This includes ensuring that second and third-tier suppliers have sufficient resources and reliable and flexible delivery schedules. Companies are also looking at ways to reduce risk by diversifying suppliers and establishing contingency plans. Furthermore, companies are utilizing data and analytics to understand their supply chain capabilities better, enabling them to identify potential disruptions quickly. 

FreightCenter is here to help businesses stay ahead of the curve and remain competitive in 2023. Our team of experts is knowledgeable about the latest trends and innovations in supply chain management, from sustainability strategies to building resilience into your operations. FreightCenter can provide you with a comprehensive suite of services that will enable you to keep up with these ever-changing demands. With FreightCenter’s expertise by your side, you can be sure that your business remains at the forefront of its industry this coming year. Get a free quote online, or contact us today to learn more!

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