In 2024, 97% of supply chain leaders plan to reengineer their operations, with 59% already using AI for supply forecasting to enhance agility and resilience amid global challenges. The survey of over 300 decision-makers highlights a shift towards domestic sourcing (67%) and dual sourcing (52%) to counteract disruptions, alongside investments in logistics sustainability (50%) and change management strategies.
Supply Chain Trends and Strategies for 2024
In a rapidly evolving global landscape, supply chains are increasingly focusing on agility and resilience. Recent research surveyed over 300 supply chain decision-makers, revealing key trends and strategies poised to shape the industry in 2024.
Adoption of Artificial Intelligence
A significant trend observed in the survey is the widespread adoption of artificial intelligence (AI) to enhance various aspects of supply chain management. Notably, 59% of the respondents are utilizing AI for supply forecasting, while 56% have implemented AI for visibility and tracking purposes. Additionally, 56% are using AI to optimize operations, and 57% are employing the technology for demand forecasting.
This technological integration aims to streamline processes and improve accuracy in forecasting, which is crucial given the current global challenges. As these AI-driven strategies evolve, companies are also planning to implement advanced order management systems, with 60% of the respondents indicating such intentions.
Reengineering Supply Chains
The survey highlights a strong inclination towards reengineering supply chains, with 97% of participants planning to undertake this process within the next two years. Of these, 30% are considering a total reengineering of their supply chains. This shift is driven by the need to adapt to changing market demands and mitigate risks associated with disruptions.
In response to geopolitical tensions and regulatory changes, which have disrupted major shipping routes, companies are urged to diversify transport routes to ensure continuity. Strategic buffering of stock levels and dynamic inventory strategies are also recommended to counter the vulnerabilities exposed by traditional just-in-time inventory management practices.
Building Resilience and Sourcing Strategies
Building resilience against disruptions remains a top priority, with 93% of the surveyed decision-makers expressing confidence in their supply chains’ resilience, and 66% being very confident. Companies are increasingly looking to develop relationships with alternative suppliers, as indicated by 69% of respondents.
Furthermore, there is a noticeable trend towards increasing domestic sourcing, with 67% of companies pursuing this strategy. Dual sourcing is also being considered by 52% of the respondents to further enhance supply chain resilience.
In light of port congestion and trucking shortages, which are placing unprecedented pressures on global transportation, these sourcing strategies are critical in ensuring supply chain continuity and efficiency.
Investment in Sustainability and Change Management
As environmental concerns gain prominence, 50% of the companies are investing in logistics sustainability. This reflects a growing recognition of the importance of sustainable practices in maintaining long-term supply chain viability.
Change management is another area receiving significant attention. With 61% of shippers and 73% of third-party logistics providers (3PLs) identifying change management as critical or significant, successful strategies are seen to encompass considerations of people, processes, and technologies. Companies are encouraged to secure buy-in from cross-functional teams, identify affected departments for change initiatives, and define key performance indicators (KPIs) before implementation begins.
The research underscores the complex challenges facing global supply chains in 2024, including rising transportation costs, labor shortages, and customer demand for a diverse product range. As companies navigate these challenges, the implementation of strategic changes and investments in technology will be pivotal in maintaining competitive and resilient supply chains.
“The evolving landscape of global supply chains requires a proactive approach to managing risks and leveraging technology,” noted a supply chain expert.
Overall, the insights from this research provide a comprehensive understanding of the current trends and strategies that will guide supply chain management in 2024. As companies adapt to these changes, the emphasis on resilience, sustainability, and strategic reengineering will be crucial in meeting the demands of the future.