8 Supply Chain Trends Likely To Affect Franchises in 2023

Supply chain management entered mainstream business conversations over these past few years—thanks in large part to the Covid-19 pandemic, which disrupted the global flow of goods and services since its arrival 3 years ago this month. And while the worst of it is over for now, businesses in all sectors continue to feel the pressure to meet consumer demand, often with diminished supplies.

Even before the pandemic, in early 2018, KFC in the U.K. ran out of chicken, forcing the closure of 500 of its then-900 stores in the country (followed by a hilarious, edgy apology). Despite the problem stemming from KFC switching its delivery partners (i.e., not from Covid), this was an early warning of what was to come as the pandemic wreaked havoc, causing franchisors worldwide to question their just-in-time delivery strategy, as well as their reliance on distant, especially overseas, suppliers to keep their franchisees stocked with the goods that are the lifeblood of a profitable franchise system.

Supply chain issues continue to be top of mind for franchisors in 2023. In a recent article on Thomas Insights, Laura Ross writes, “It’s no secret that supply chain professionals have navigated unprecedented disruptions in the past couple of years. While various challenges are ongoing, many organizations are now at a place where they can regroup and re-strategize…. We’ve uncovered some of the top trends in supply chain management from last year that will carry into 2023.”

The 8 top trends she identified are listed below. For further discussion of each trend, find her complete article here.

1. Increase in reshoring and near-sourcing initiatives
2. The continued rise of product-as-a-service
3. The rise of crowdsourced delivery
4. Better worker conditions for truckers
5. High supply chain costs
6. Smaller warehouses
7. Major skills gaps remain
8. Technology investments

To subscribe to Thomas Insights’ daily newsletter, click here.