Top 5 trends in Supply chain 2024

In the past, industries had adopted new supply chain strategies which included adoption of integrated supply chain networks, AI and digital technologies, reskilling of workforce, etc, for profitable results. The new year would introduce new challenges and more emerging trends where the supply chain will evolve for a competitive and resilient Supply Chain.  

Index

• What is a supply chain? 
• Trends in Supply chain 
• More visibility into supply chains needed 
• The critical role of data 
• Generative AI in operations
• ESG and Scope 3 emissions 
• Electric vehicles, transport and logistics 
• How does Partner Portal help organizations stay up with the trends? 
• Conclusion 

What is a Supply chain?

A supply chain is a complete process of producing and delivering a finished product or service to its end customer. For example, for a manufacturer who produces Candies or any FMCG product, the process would begin with identifying the requirements of raw material and its source i.e. a vendors or suppliers. Once the vendor supplies the raw material the ball is then set rolling to produce the finished product. In the next stage, the manufacturer engages a logistic provider and the distribution channels to get the product delivered to retailers and from there, it reaches its end consumer. This entire process is called the supply chain and as evident it has various stakeholders, such as producers, vendors, warehouses, transportation companies, distribution centers, and retailers. It is an interconnected network of Supply Chains that results in a happy and satisfied customer. 

Trends in Supply Chain

Supply chain has always evolved over time into complex and dynamic ecosystems which drove the way to competitive advantage for businesses.  As we enter 2024, there are new emerging trends that will reshape and redefine the supply chain ecosystem.  

Let’s look at some of these evolving trends: 

More visibility into supply chains

The lack of visibility of a supply chain will always create disruptions and companies would lose control over the inbound network. Hence, Digitalization become an important part of supply chains and helped in achieving better visibility throughout the chain.  

Now, companies are investing in technologies which would build greater and deeper insights into root causes, identify new risks that occur further into the supply chain and drive through better traceability and transparency. 

The organizations are looking across their extended supply chain including partners, suppliers, vendors to build greater and deeper insights into root causes, identifying new risks that may occur further into the supply chain and drive through better traceability and transparency. 

The critical role of data

The business environment has been more competitive than ever before hence the importance of data cannot be overlooked. The data allows an organization to understand the business in a better way and to take correct action on key business drivers.  

It is assumed that 2024 will be the year to invest in technologies which don’t just provide data but possibly millions and millions of data from each step and from all stakeholders.  It results in more transparent and traceable business. Automation, AI, IoT, and other similar technologies are playing a big role in capturing this data, which helps an organization make informed decisions.  

The trend of managing the complexities efficiently and making informed decisions is optimizing the operation. Leveraging the insights empowers an organization to enhance its supply chain processes, reduce costs, and improve overall efficiency.     

Generative AI in operations

Generative AI is revolutionizing the supply chain process by summarizing a large volume of data, extracting key insights, and generating a suitable result in a shorter time frame.  It results in reducing costs by bringing structure to complex tender processes and enhancing decision-making. It also assists in improving supplier relationships and management, with recommendations on what to do in the future.   

Businesses are pouring cash into GenAI technology, as it proves to be an agile co-advisor and multiplier in strengthening supply chains. The advantage technology provides in activities such as Demand Forecasting, inventory optimization, logistics optimization, etc is immense. Generative AI would also come with its own challenge of data privacy, ethical implications, etc which would be imperative for businesses to monitor to keep the model effective and relevant.  

ESG and Scope 3 emissions

Industries are contributing to achieving net-zero emissions by reducing greenhouse gases in the atmosphere. This fact has already attracted the attention of investors and shareholders as it is becoming a legal need in many countries. Hence, organizations are establishing a strong emission measuring point to monitor progress and set reduction targets.  

Many digital platforms are offering a centralized system for suppliers to record their complete information on carbon emissions. In this way, companies can get their emissions data which is helping the company to use hybrid carbon accounting methodologies and produce a more accurate assessment of Scope 3 emissions. 

Electric vehicles, transport and logistics 

The dependence of the supply chain cycle on transportation and logistics is clear.  

Automation of warehouses or ports and autonomous vehicles are already driving the interest of industries and investors. These are a way to reach the targets of emissions reduction.  

The evolution of battery technologies, electrification, and automation of logistics are the demands of the present and future to make material improvements to network efficiency, customer experience, risk reduction, and sustainability targets.  

How does Partner Portal help organizations stay up with the trends?

Partner Portal is a cloud-based vendor management system that helps in digitalizing the supply chain system and allows an organization to bridge the gaps of the supply chains - lack of visibility, transparency and traceability that have shaped some of the trends.   

Some of the features of the Partner Portal that enable an organization to stay up with the trends are:  

• Real-time inventory tracking: The platform allows the organization to get real-time updates about product and material status in the supply chain.   
• Automated reordering: Implement automated reordering by Partner Portal, powered by AI, which helps in generating and sending purchase orders based on predetermined inventory levels.   
• Master Data management: An organization can manage all the data related to vendors, products, and orders through this centralized platform.   
• Digitalization of paperwork: The user-friendly system digitalizes all the paperwork while onboarding vendors and creating digital catalogs. The platform enables the vendors to submit and get verified information online for compliance.   
• Third-party integration: Partner Portal provides an option to integrate any third-party solutions to complete the supply chain.   

Conclusion

Partner Portal allows the organization to reshape its supply chain management by embracing new models of success. It provides businesses with enhanced visibility and control over vendor expenditures, mitigates risks, and optimizes value for the organization. Considering features, user-friendliness, and scalability allows them to choose Partner Portal tailored to their specific requirements, contributing to long-term sustainability.     

FAQs: 

What is a supply chain?  

A supply chain is a network of organizations and individuals engaged in producing a final product and delivering it to its customers.   

What is the supply chain trends for 2024?  

In 2024, Cloud-based models, data analytics, and trends of new technologies such as AI, ML, IoT, Generative AI, etc, will reshape the supply chain.  

What are the biggest challenges in the supply chain?  

Supply chain challenges can include changes in consumer demand, trade wars, raw material shortages, climate change, stricter environmental regulations, economic uncertainties, and industrial unrest, among others.