Autonomous vehicles (AVs) are fast becoming famous, changing how businesses operate and revolutionizing the supply chain industry. With the evolution of technology, the implementation of AVs in supply chain management (SCM) will become more common. A report by Allied Market Research notes that the global autonomous vehicle market will reach $556 billion by 2026, with a CAGR of 39.47% from 2019 to 2026. As AVs become more prevalent, businesses must understand their impact on SCM in 2023 and beyond. Here are some impacts of AVs on supply chain management in 2023.

With companies’ continued reliance on global supply chains, managing environmental, social, and governance (ESG) risks is becoming increasingly important. ESG risks refer to potential negative impacts on a company’s environment, society, governance and operations. These risks can arise at any point in the supply chain and can have serious consequences for businesses if not properly addressed. One example of an ESG risk in the supply chain is climate change and emissions. If a company’s supplier is not taking steps to reduce their carbon footprint, it could lead to higher emissions and contribute to climate change. This could result in regulatory consequences and damage the company’s reputation and potentially lead to financial losses.

 The logistics and supply chain industry is fast embracing technology in its quest to keep up with the trends in the digital age. With the fast pace of technology, businesses must move with speed to advance and become competitive. Technologies like machine learning (ML), artificial intelligence (AI), blockchain, supply chain integration and the internet of things (IoT) are proving useful in this quest because they will ensure you lead the race. Here are some logistics trends you need to watch this year.