Supply Chain Predictions for 2025
21st November 2024
Looking ahead to 2025, Supplyframe shares its predictions on the electronics supply chain industry, including AI, resilience, and other industry thoughts, by its CMO, Richard Barnett.
1. Resilience will rise in 2025
Electronics supply chains will focus on resilience, AI integration, and sustainability in the coming year as companies seek to gain the visibility and capabilities to stay ahead of numerous challenges and forms of risk.
In terms of resilience, supply chains will continue to seek ways to identify components that pose lower levels of risk, cost, availability, or general ease of sourcing. Part of this effort will also be driven by the continued process of nearshoring as organizations seek to localize their supply base to reduce risk.
2. AI gets white hot in supply chain
The buzz surrounding AI continues as supply chains seek novel ways to integrate the technology. In 2025, organizations will focus on new applications for the technology that allows them to quickly parse supply chain intelligence or automate manual tasks in design, sourcing, and procurement.
3. A new focus on sustainability
Sustainability has continued to grow in terms of overall focus. In 2025, organizations will look for ways to address scope-3 emissions in their supply chains (supplier and logistics emissions), accounting for roughly 40% of a product’s carbon footprint. New forms of intelligence allow for a deeper understanding of an individual component’s CO2 emissions, providing teams with insights that allow them to consider sustainability earlier in the design process than ever.
4. Challenges will continue throughout the industry
Global chip shortages have improved overall, but demand continues to outpace supply in many categories as new capacity takes years to come online. Semiconductors, of course, also have notoriously long manufacturing lead times.
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