Logistic Problems that Tech Companies Will Face in 2023 And How to Solve Them
Logistic processes are the backbone of tech and hardware companies. These processes determine the return on investment. Without an optimized supply chain, companies are forced to close their doors. Find out what logistic challenges tech companies will have in 2023 and how to face them.
1. Global economic crisis
The most obvious challenge coming in 2023 is the global economic crisis. We are just starting to see the post-pandemic scenario; the escalation of the Russia – Ukraine conflict, and the high prices of oil and gas. While these situations are out of our hands, it directly affects the supply chain. The smartest way to reduce the impact of a large global crisis is to predict and be prepared. Start by having satellite warehouses in strategic places with enough inventory to resist while your company stabilizes and finds a way to adapt to the new situation. With crisis, new systems and ideas start flourishing, but you have to survive the hardest stages.
2. Short life cycle of hardware
Different situations around the use of hardware can make their lifecycle shorter. Maybe the equipment needs to be repaired or replaced, or there is an improved or new product that eventually replaces the older one. This used hardware end up abandoned by the clients and the tech companies. A short lifecycle is inevitable, but companies are underestimating the power of reusing that equipment. The old equipment could be picked up, refurbished, and sent to another client. If it cannot be reused, it could be destroyed and protect the client's information. This way, tech companies could be saving thousands of dollars.
3. Slow supply and transportation systems
The hardware supply chain has a large ecosystem of stakeholders. A slight delay in any stage of the supply chain can influence the delivery time. To solve this persisting challenge, the company needs a precise and experienced logistics team that can monitor every step of the process and plan for future risks that might occur during manufacturing and transportation..
4. Needs of consumers
After the pandemic, the increase in demand for hardware for remote workers made producers ship individual hardware to different locations around the world, adding additional costs and a more complex supply chain. Additionally, people started to expect their products within 24 hours at their doors and 24/7-hour support service, putting additional pressure on the industry. To face this challenge (and opportunity), companies need service support satellites and fast deployment centers in strategic places where they can ship overnight to their clients.
5. New competition
The tech industry is one of the fastest developing industries with very strong competitors that are constantly innovating and developing new and improved products. Additionally, consumers are not as loyal as they used to be, they would try new products that promise better performance at a lower price. To face this challenge, companies need to have the competitive advantage of an optimized supply chain. 98% of shoppers say delivery affects how loyal they are to a brand, if you want to keep your clients this 2023, the best way to do it is to have the best service.
Turn to us for logistics services you can depend on
There is a lot that can go wrong with your logistics, and that is costing you money. Dragon Sino is your logistics department. We take care of every stage of the supply chain, you will save time and money, and it will give you peace of mind by guaranteeing smoothness in your logistic processes.