Skip to content
Search AI Powered

Latest Stories

Businesses will seek data-driven intelligence in 2024

Progress will require advancements in supply chain infrastructure and increased adoption of digital tools and AI, Molex report says

molex Screen Shot 2023-12-12 at 3.36.52 PM.png

As they head into 2024, companies will be looking to accelerate the delivery of data-driven intelligence to better manage global supply chains and increase on-time customer deliveries, according to a report from electronics and connectivity provider Molex.

They will attempt to do that through continued advancements in supply chain infrastructure, along with increased adoption of digital tools and artificial intelligence (AI), according to Don Hnatyshin, senior vice president and chief supply chain officer at Lisle, Illinois-based Molex.


“Regardless of the expected and potentially unexpected trends in the coming year, organizations that pursue digital transformation will be best positioned with the agility to respond to the market changes and global shifts in 2024,” Hnatyshin said. “The key is having the vision to build out a platform that can adapt, protect and reinforce customers’ timelines and market initiatives across a wide range of known and unseen scenarios.”

More specifically, Molex offered five factors they predict will play pivotal roles in 2024:
  1. Market Demand Will Remain Uncertain. Continued fluctuation in market demand will be an overarching issue in 2024. Each industry sector—from automotive and consumer devices to data centers and electrification—is moving at a different pace, creating both upticks and downturns in market demand. For instance, 2023 was a strong year in the automotive sector, but uncertainty in global interest rates and forecasted headwinds in the electric vehicle (EV) market could cause demand declines in the new year. While EVs remain in an innovation cycle, inflationary material costs are moving price points past what was previously anticipated.
  2. Optionality is Key to Addressing Ongoing Trade and Tariff Issues. Trade and tariff issues are a constant concern for global supply chains, which is why it’s increasingly critical to select the right suppliers in the most favorable regions closest to end customers. As global markets rebalance inventory levels, optionality becomes a core strategy to mitigate the impact of issues such as foreign currency exchange rates and geopolitical volatility. This strategy will be particularly important in the electronics industry in 2024, with an even stronger bias in Mexico and Southeast Asia.
  3. An ‘Inventory Hangover’ Will Persist. High demand in 2021 and 2022 led to significant inventory investments. The result, which has been called an “inventory hangover,” loomed heavy in 2023. However, this should dissipate by the second half of 2024—or possibly during the third quarter of next year – as inventory levels continue to rebalance. This will occur first at the component level, then work through raw materials.
  4. There’s a Sunny Forecast for Freight and Logistics. One bright spot in 2023 was logistics costs returning to a balanced state that almost approached pre-pandemic levels. The primary challenge in 2024 will be commodities costs, which are expected to remain high, driven by labor inflation and currency exchange rates. Optionality in supplier selection will go a long way toward mitigating these costs in the coming year. 
  5. AI and Analytics will Gain Momentum and Acceptance. Increased adoption of AI, predictive analytics, digital twins, and machine learning (ML) will gain greater momentum and acceptance in the year ahead. Together, these advanced data-driven tools will deliver real-time visibility and actionable business insights to help companies respond with greater speed in bolstering supply chain resiliency. In 2024, ongoing investments in enriching data ecosystems will elevate overall demand and supply planning initiatives. Excess inventory is a great example, as machine learning and AI can optimize inventory health and velocity while generating a much clearer picture of potential outcomes to improve decision making.  
 

The Latest

More Stories

DHL graphic on online shopping marketplaces

DHL report shows seven factors about American online shoppers

Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.

First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).

Keep ReadingShow less

Featured

schneider app screenshot for owner operators

Schneider seeks more business with owner-operators

Transportation and logistics service provider Schneider National Inc. is reaching out to owner-operators, encouraging them to do more business with the Wisconsin company using an updated digital platform.

Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.

Keep ReadingShow less
Logistics economy grew in October

Logistics Managers' Index

Logistics economy grew in October

Economic activity in the logistics industry continued its expansion streak in October, growing for the 11th straight month and reaching its highest level in two years, according to the most recent Logistics Managers’ Index report (LMI), released this week.

The LMI registered 58.9, up from 58.6 in September, and continued a run of moderate growth that began late in 2023. The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.

Keep ReadingShow less
port of vancouver

West coast dockworker strike could dent Canadian economy

The port worker strike that began yesterday on Canada’s west coast could cost that country $765 million a day in lost trade, according to the ALPS Marine analysis by Russell Group, a British data and analytics company.

Specifically, the labor strike at the ports of Vancouver, Prince Rupert, and Fraser-Surrey will hurt the commodities of furniture, metal products, meat products, aluminum, and clothing. But since the strike action is focused on stopping containers and general cargo, it will not slow operations in grain vessels or cruise ships, the firm said.

Keep ReadingShow less
trucks used by jillamy 3PL

Texas 3PL Mode Global acquires Jillamy’s freight brokerage arm

The Texas third-party logistics firm (3PL) Mode Global has acquired the freight brokerage business of supply chain service provider Jillamy, saying on Monday that the deal advances its strategy of expanding its national footprint.

Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.

Keep ReadingShow less