December 28, 2022
C-Suite Wednesday – 88% of Small Businesses will Use Suppliers Near Home in 2023
“The biggest surprise in the research is that nearshoring is happening much faster than predicted at small businesses,” says Olivia Montgomery, Associate Principal Supply Chain Analyst at Capterra. “What’s less surprising, but equally critical, is the shift we’re seeing toward collaborative procurement. Supply chains are becoming less of a back-of-the-house ‘secret recipe’ and more like a joint collective where everyone benefits.”
In a recent report from Capterra, the survey revealed some of the top trends to expect in the future of small business supply chains. Here are the facts:
• 88% of small businesses plan on or are currently switching some of their suppliers closer to the United States in 2023.
• In 2022, 37% of small businesses reported that all of their suppliers are located close to or in the United States, and 44% said most of their suppliers are near or in the U.S.
• The three top concerns for small businesses going into 2023 are economic inflation (65%), a lack of inventory (45%), and the economic recession (42%).
• In the last six months, 61% of the small businesses surveyed experienced significant procurement challenges.
• 29% of small businesses reported that procurement challenges were their top concern for 2023 supply chains.
• 30% of small businesses plan to implement a new supply chain management tool in 2023 to help forecast demand.
• Two-thirds of respondents stated that forecasting techniques helped them prevent excess inventory in 2022.
• 64% of small businesses have joined or are planning to join a group purchasing organization (GPO) to manage procurement costs and challenges.
• The number of small businesses that are part of a group purchasing organization doubled in the last year.