By Supply chain disruptions continued to be a prominent concern in late 2023, with escalating geopolitical conflicts adding complexity. Predicting outcomes in the volatile landscape of supply chains, influenced by geopolitics, economic uncertainties, and climate disruptions, remains challenging. Stakeholders globally are focused on embedding stability and resilience in supply chains.
As the new year unfolds, several trends are anticipated to reshape supply chains in 2024.
- Generative AI (GenAI) Revolutionizing Supply Chains:
In 2023, Generative AI (GenAI) emerged as a pivotal force. A recent report from KPMG in India revealed that 74% of stakeholders consider GenAI the most impactful emerging technology across sectors. Stakeholders are actively exploring diverse applications of GenAI in transforming supply chain management. By analyzing complex variables like historical data, demand fluctuations, production schedules, regulatory changes, and seasonal patterns, GenAI streamlines processes, enhances forecast accuracy, optimizes resource allocation, and mitigates risks. The self-learning algorithms within GenAI-powered software engines proactively adapt to fluctuations, improving operational efficiency, reducing costs, and fostering a more adaptive and responsive supply chain ecosystem. Leading e-commerce giants are also exploring innovative GenAI use cases to enhance customer experience, marketing techniques, and product listings. - Increased Tech Integration for Resilience:
Supply chains are proving to be adept at absorbing technology, crucial for building resilience. Ongoing digital transformations in operational planning, leveraging advancements in AI such as decision intelligence and analytical models based on advanced machine learning, are driving no-touch and low-touch strategies adopted by leading supply chain organizations. Low-touch planning enhances predictability, improving return on equity by 2–4%. These strategies reduce manual workload, enhancing workforce safety and eliminating human errors. To streamline software updates in a dynamic environment, organizations are increasingly incorporating low-code platforms, providing customizable capabilities to adapt to real-time supply chain disruptions. Additionally, stakeholders are prioritizing smart transportation and logistics. These technological transformations collectively contribute to an optimized and resilient supply chain ecosystem.
