09 Dec 2022

Current Supply Chain Management Trends For 2024

By 2024, we're likely to see modern trends emerging in the field of logistics and procurement that can help enterprises stay ahead of their competitors. Here are some key trends you need to be aware of:

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2024 is set to be a year of innovation. With numerous factors from technology, markets, and disruptions continuing to headline the news hour, companies will look for more efficient and sustainable solutions which will be achieved through marquee technologies and strategies.

From predictive analytics tools to blockchain and artificial intelligence to Industry 4.0, the way organizations manage their supply chains is set to undergo a radical transformation over the coming years. These cutting-edge technologies will help leadership make better decisions and reduce costs while ensuring they can react quickly when market conditions change.

In addition to technological advancements, organizations are increasingly focused on reducing GHG emissions and making their supply chains more sustainable. This is likely to become even more of a priority in 2024, with corporations facing rising consumer demand for healthier and greener products and higher taxes on emissions. At the same time, looming inflation and the possibility of an upcoming slowdown will further strain value chains.

Let us first have a look at key factors which are responsible for trends in SCM.

Table of Contents

What are the key factors influencing recent supply chain management trends in 2024?

There are several new factors for the trends in supply chain management that we will see in 2024. Some of these factors include the impact of new technologies, the need for sustainability, and the after effect of global events.

Here are some of the crucial factors responsible for trends in SCM:

Drivers for Supply Chain Management Trends in 2024
  • Inflation: Inflation is one of the most significant factors of change. With prices rising, management are forced to find new ways to reduce costs and become more efficient. In addition, in a period of inflation, many enterprises may find it difficult to obtain the resources they need to operate, which can lead to disruptions in the supply chain.

    To stay competitive during inflation, management needs to be agile and responsive, and they must be able to adapt to changing market conditions quickly. Additionally, companies should focus on reducing waste and becoming more sustainable, which will help them maintain profitability even during times of high inflation.

  • Economic Slowdown:  The prospect of an economic slowdown is a major concern for many businesses in the supply chain industry. A slowdown can lead to decreased demand, higher costs, and longer lead times. To remain competitive during an economic downturn, companies have to be as adaptive in their operations as they have known.

    In order to do so, businesses should focus on reducing their costs, increasing their flexibility, and streamlining their operations. Establishment should look for ways to diversify their supply chain so that they can proactively adapt to changing market conditions.

  • Reduction In Greenhouse Gases: Reducing greenhouse gases is a key factor of change in the supply chain industry. Governments and organizations around the world are pushing for drastic reductions in emissions. As companies seek to reduce their environmental footprint, there is an increasing focus on sustainability in logistics and procurement. This includes initiatives such as eco-friendly packaging, carbon-neutral shipping methods, and other sustainable practices that can help businesses become greener.

    To do so, senior decision-makers should focus on using renewable energy sources, reducing waste, and implementing more efficient processes. Association should also strive to use fewer resources when possible and ensure that their suppliers are sourcing responsibly.

  • Geopolitical And Trade Risks: The geopolitical and trade risks associated with global supply chains are growing. Enterprises must be aware of potential disruptions due to political or economic unrest in any part of their value chain, and this can lead to shortages, delays, and higher costs.

    In order to mitigate these risks, organizations should focus on diversifying their suppliers and sourcing locally when possible. Businesses should strive to create relationships with multiple suppliers so that they can switch to an alternative source if needed. Finally, companies should ensure that their supply chain is constantly monitored for potential risks.

    Visibility in the process is incredibly important for businesses to identify and mitigate potential risks. With increased transparency, stakeholders can monitor their value chain in real-time and quickly respond to any disruptions. This is especially important during times of political or economic unrest when it is difficult to predict how a situation may affect an organization workflow.

  • Adoption Of Advanced Technologies: Adopting advanced platforms is an important trend in the value chain industry. Technologies such as generative artificial intelligence, machine learning, blockchain, and digital twins are being used to increase efficiency and accuracy. Companies can use these breakthrough tech to streamline their processes, instill transparency, improve communication within their workflow, reduce costs, and increase customer satisfaction.

What are the top 7 supply chain management trends in 2024?

The value chain industry is constantly evolving in response to changing market conditions and customer demands. Companies must be aware of the emerging trends in order to remain competitive.

Here are some of the key trends in that we will see in 2024:

  1. Automation The use of automation is becoming increasingly important in the supply chain industry. Automated systems can help reduce costs, streamline operations, and increase efficiency. In order to take advantage of these benefits, companies must invest in cutting-edge solutions such as Generative AI, machine learning, robotics, and the Internet of Things (IoT).

    Additionally, they can help designated operations improve their visibility and make better decisions based on real-time data. By investing in these technologies, ventures can stay ahead of the curve and remain competitive in an ever-changing marketplace.

    Technology remains a strategic imperative for supply chain organizations. In a recent Gartner survey, 61% of respondents say technology is a source of competitive advantage. Many also identify several emerging technologies as critical investment areas, with 20% investing in robotics.

  2. Adoption Of Blockchain for Handling Data

    The blockchain is a distributed ledger technology that has the potential to revolutionize the supply chain industry. By using blockchain, companies can securely store and share data across their entire network. Additionally, businesses can use smart contracts to automate processes and ensure that all parties involved comply with regulations.

    Blockchain allows stakeholders to track and trace products throughout their current state of operation. This helps them ensure that only quality products are delivered to customers and reduces the risk of counterfeit goods entering the market.

    As per an article by Deloitte,

    New technologies are presenting promising opportunities for improvement across the supply chain. Using blockchain in the supply chain has the potential to improve supply chain transparency and traceability as well as reduce administrative costs.

  3. Supply Chain Sustainability

    As environmental awareness increases, more and more corporations are looking for ways to reduce their carbon footprint. This has led to a greater focus on sustainability within the supply chain industry. Companies must strive to develop sustainable practices that minimize their impact on the environment while still providing high-quality products and services. By doing so, they can remain competitive in an increasingly eco-conscious marketplace. With the ever increasing fondness for renewable transportation, logistics services have been able to take responsible roadmap towards a more carbon-neutral journey.

    In 2024, industry must focus on becoming more sustainable by adopting green logistics and renewable energy solutions. Additionally, they can employ tools such as carbon footprint calculators and eco-friendly packaging materials to reduce their environmental impact. By taking these steps, companies can ensure that they are more sustainable and resilient in the face of changing market conditions.

    As per Gartner survey,

    84% of supply chain leaders plan to invest in climate adaptation and mitigation measures in the next 18 months.

  4. Agility in the Supply Chain

    Agility is becoming an increasingly important trait. Institutions must be able to quickly shift their strategies and operations to meet changing customer demands. This requires companies to have an agile process that can handle sudden changes, such as fluctuations in demand or unexpected delays. In order to do this, they must implement a flexible strategy that allows them to adapt to changes and stay ahead of the competition.

    Leadership must invest in cutting-edge technologies such as cloud computing to become more agile. They can utilize data analytics to gain real-time insights and make better decisions based on this information. These steps allow businesses to become more agile and remain competitive in an ever-changing market.

    This fast-moving, fragmented, consumer-centric world will require a different sort of supply chain. Traditional supply chains sought to achieve stability and minimize costs. Future supply chains will need to be much more dynamic—and be able to predict, prepare, and respond to rapidly evolving demand and a continually changing product and channel mix. - Mckinsey

  5. Supply Chain Resilience

    Value chain resilience is becoming increasingly important. SCM must be able to identify and manage potential risks before they become serious problems. Additionally, they must have effective strategies to deal with unexpected changes and disruptions. To do this, companies must invest in solutions that allow them to identify and address potential risks while also adapting their strategies and operations to new conditions.

    In 2024, companies should also focus on developing robust networks that can quickly adapt to changes. Additionally, they must implement predictive analytics solutions that identify potential risks before they become serious problems.

    According to one of the Gartner findings,

    As organizations experience a larger number of unfamiliar risks, coupled with management of familiar ones, there is an increasing need for oversight on end-to-end risk management within the supply chain.

  6. Collaborative Planning

    Collaborative planning is becoming increasingly essential to the leadership of the supply chain industry. Companies must be able to collaborate with their partners and suppliers to proactively develop effective strategies and ensure that their operations run smoothly.  Collaborative planning is essential for aligning different teams and allowing them to move towards a common organizational goal. By working together, teams can develop collaborative strategies that account for every stakeholder’s needs and objectives.

    Organizations should focus on developing collaborative partnerships with their suppliers and partners in the upcoming year. They should also utilize digital tools such as cloud-based technologies and predictive analytics to manage their flow of work better. By taking these steps, companies can ensure that their operations are efficient and agile in the face of changing market conditions.

  7. IoT

    Funneling IoT tech has opened up greater avenues to keep a better track of operation. By utilizing IoT-enabled devices, companies can track the movement of their goods along the supply chain quickly and accurately. This allows them to gain insight into their operations and make better decisions proactively.

How is 3SC SCAI Leading Supply Chain Management Trends In 2024?

3SC SCAI is leading the way in SCM trends for 2024. Our platform is designed to help value chain operation become more agile and resilient by utilizing cutting-edge products such as Integrated Business Planning, Enterprise Data Management, Predictive Analytics, and CarbonX. Additionally, our solutions enable management to collaborate more effectively with their partners and suppliers to quickly develop effective strategies and ensure that their operations run smoothly. By taking advantage of the 3SC SCAI platform, enterprises can gain real-time insights into their supply chains and make better decisions based on this information. With these solutions, companies can remain competitive in an ever-changing market.

Connect with us to know how 3SC will transform your value chain process.

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