Cyber threats, physical disruptions and global geopolitical challenges. Supply chains world-wide have been shaken over the last few years. As we welcome in the new year, three industry experts look to 2025 and what lies in store.
1. Revolutionising retail strategies
Supply chain disruptions have been a cold shower for retailers this year. From the Red Sea crisis to the recent US port strikes, these events have been a shock to the system. “Retailers didn’t realise how big of an impact it could have on their operations. They’ve been bitten, and now they’re shy,” explains Rob Shaw, GM EMEA at Fluent Commerce. “As a result, CFOs will be nervous about over-exposing themselves.”
For Shaw, it is vital that retailers learn from these disruptions, as well as taking lessons from previous industry upheavals like the COVID-19 pandemic. “Learning from these events, retailers will change the way they source goods. More near-shore supply chains could emerge as companies look to reduce reliance on the Far East.
“The introduction of export taxes in the US may also have a significant impact on overseas trade, possibly leading to shifts in market strategies for European brands as they reconsider their expansion plans. Retailers will also be looking closer at how they orchestrate and manage their inventory to ensure they can fulfil the customer promise,” Shaw adds. “With real-time inventory data that shows what stock is available now and in back order transit, retailers can know for certain what they can promise to their consumers – and provide timely updates if disruptions occur.”
2. Preparing for cyber threats
Supply chains in 2024 witnessed their fair share of cyber threats. Dan Bridges, Technical Director – International at Cyware, explains, “as we look toward 2025, it is more crucial than ever to remember the importance of securing our supply chains against the ever-growing threat of cyber-attacks and the harm these can cause.”
Bridges goes on to explain that, “with increasing interconnectivity and supply chain complexity, breaches in one part of the ecosystem can quickly ripple through to other areas, making collective defence strategies more vital than ever to maintain business resilience. Organisations must stay vigilant and acknowledge the need to assess, monitor, and review their own cybersecurity practices as well as those of their third-party vendors. This shift will likely push companies to not only improve their own security postures but also to collaborate more effectively across industries.
“2025 will likely see a shift toward a more interconnected, regulation-driven cybersecurity landscape, where organisations of all sizes work together to protect not only their own systems but also the broader supply chain ecosystem,” he adds. “This collective approach, driven by legislation and bolstered by technology, promises a more resilient and secure future for businesses worldwide.”
3. Optimising data management
As we move into 2025, factors such as geopolitical volatility, consumer unpredictability and climate change will continue to impact the consumer products value chain. “Therefore, the sector will need to work towards greater efficiency and agility, while also responding to sustainability demands,” notes Ted Combs, Industry Principal for Consumer Products at AVEVA. “Looking ahead, operational data management tools will be indispensable for long-term resilience. Integration with AI capabilities will help drive greater cost and operational advantages. Amid continued global supply chain volatility, companies without real-time demand awareness will risk falling behind.”
As many experts agree, AI will be prevalent throughout 2025. This is echoed by Combs, who believes, “AI is beginning to deliver significant and fast returns on investment, through enhancing data analysis which leads to better decision-making. Companies are becoming laser focused on cost and waste management, using advanced analytics and automation to optimise resource use and reduce waste. This helps firms counter inflationary pressures without sacrificing product quality. Over the next 12 months, operational data management is likely to see widespread adoption as consumer products brands strive to agnostically capture, share and visualise data from the edge to cloud, enhancing decision-making and scalability. Investing in a strong, flexible data infrastructure is crucial for future-proofing assets and maximising returns on new data-sharing technologies.”
As we look ahead to 2025, the global supply chain landscape will continue to be shaped by the lessons of recent disruptions. Retailers are reevaluating their strategies to build more resilient, efficient and flexible supply chains. Together, these trends highlight a future where innovation, collaboration, and adaptability will be key.
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