10 outstanding supply chain development trends in 2024

Big data and analytics

Big data and analysis in the supply chain is the use of data on transportation, purchasing, sales, etc. to predict future activities and limit risks. From analyzing data and predicting, businesses can fully harness the power of the supply chain. In addition, big data analysis also supports businesses in planning and making decisions.

Learn More: Data supply chain

Digital supply chain

A digital supply chain is a form of supply chain transformation, with a focus on incorporating new techniques and technologies into all stages and operations of the supply chain.

The digital supply chain includes factors such as visibility, resiliency, and flexibility. In a digital supply chain, people use technology such as Blockchain, and AI to increase the efficiency of the workflow as well as the data collection and analysis process. As a result, businesses can significantly improve the time and accuracy of decision-making.

 See Also: Global supply chain

Supply chain resilience

Building a resilient supply chain helps businesses anticipate possible risks affecting the supply of goods. At the heart of such supply chains are resistance and resilience. Applying a resilient supply chain helps businesses optimize operations, increase productivity, and limit risks and possible damage.

Artificial Intelligence and Machine Learning

Artificial intelligence and machine learning serve as the platform to connect people, processes, systems, and the activities of the environment around them. In the development of technology 5.0, artificial intelligence and machine learning will enhance cooperation between humans and robots. This will significantly impact each component and stage of the supply chain such as planning, management, and response. When developing artificial intelligence and machine learning, businesses will create a superior competitive advantage.

Robot

With modern technological advances, robots are effective to help people with transportation, delivery, warehouse cleaning, etc. Although the investment in robots is quite high, in the long run, using robots will help businesses save a lot of costs.

Data security and network security

Data security is an important factor to supply chain risk management. The data booming era nowadays poses threats of security holes to businesses. These vulnerabilities create opportunities for malicious attacks and intrusions into enterprise data networks.

This means that information about partners, customers, or components in the enterprise's supply chain can be penetrated and leaked. Therefore, many businesses have now applied solutions such as firewalls, anti-hacking applications, improving staff qualifications, etc. to perform well in data security and network security.

Circular and Sustainable Supply Chain

Basically, the green supply chain is the production, use, recycling, or disposal of a product in a closed cycle. Overall, circular and sustainable supply chains have sizable economic potential. This supply chain will coordinate activities in the front as well as in the opposite direction to maximize economic and ecological values.

Smart Logistics and the Internet of Things

Being well-informed and responsive to all changes are considered outstanding competitive advantages of enterprises when operating the supply chain. In particular, the Internet of Things will provide businesses with accurate information over time about the location of products, characteristics, predictions, and speed of goods delivery. As a result, businesses can save costs, improve service quality and optimize supply chain networks.

Agile supply chain

Unlike traditional supply chains, agile supply chains require close coordination between suppliers and partners to be able to manage the flow of materials, products, and accurate data. Operating such a responsive supply chain will help businesses enhance their ability to respond to risks and disruptions.

Building an agile supply chain gives businesses increased flexibility to adapt to changes in customer demand and supply. However, to do this, businesses need to ensure that the cooperation relationship is continuous. In addition, businesses should also consider the ability to connect physically between warehouses, ports, highways, waterways, and airways.

Nearshoring and Reshoring Trends

Nearshoring and Reshoring is the process of bringing the production of goods of an enterprise from abroad to the host country, in order to optimize the transportation time and cost. This is an emerging trend in recent years and in the coming time. Tensions in the trade relations between the US-China and the US-Russia lead to concerns about the sustainability of distant suppliers.

According to a survey by Thomas, 64% of manufacturers and supply chains in North America will move their manufacturing operations back to the US or Mexico instead of being located in Asia as before to reduce challenges and risks.