FEATURE Logistics
Preparing supply chains for 2025 and beyond...
Adrian Wood, Director of Strategic Business Development at DELMIA, looks at the role of evolving technology in supply chains
M
any of the changes that will impact supply chains in 2025 are not new, but the frequency
and intensity has the potential to bring new levels of strain to already stretched supply chains. So, what can companies do to prepare for 2025 and beyond? According to Darwin’s Theory of Evolution, adaption happens over millions of years. Today, it seems like business is being forced to adapt on a scale of minutes vs. millennia. So, from a supply chain perspective, what can we expect from 2025 in terms of potential changes—both good and bad? There are many areas where companies are already thinking about potential impacts and strategies: Global Economic Relations: With the 2024 US presidential election now decided, we may see a continuation or even escalation of trade tensions between the two economic superpowers which restrictions and potential decoupling of supply chains. But, restrictions in one geosphere could also lead to opportunities in others, where countries like India, Vietnam, Mexico, and Poland could emerge as alternative manufacturing hubs. Regional Trade Agreements and
30 February 2025 | Automation
Protectionism: Global supply chains are also likely to be impacted by “protectionist” measures and new trade agreements such as the EU’s Carbon Border Adjustment of supply chains within smaller geographic areas of “friendly” trade partners. We also cannot forget about ongoing global disruption Material Impacts: Many supply chains are dependent upon resources that continue to be constrained. For example, increasing demand for lithium and other materials crucial for electric vehicle batteries. On a positive note, these same challenges are also driving new innovation in material science and recycling technologies, as well as investments in new extraction and processing facilities. Climate Impact and Sustainability Pressures: Environmental concerns will continue to shape supply chain strategies due to the natural and human impact. Weather patterns may again cause disruption, and consumers and investors are applying growing pressure for sustainable and low- carbon supply chains. On a positive note, this will drive new investments in green technologies and more localised production. So, what can companies do to prepare for 2025 and beyond? Leveraging Technology for Adaptation:
Preparing supply chains for 2025 and beyond...
Let’s explore: • : Accuracy in supply chain planning is critical because it ensures decisions are based on precise data analytics, • Enterprise-Wide Collaboration: Collaboration across the product lifecycle, including supply chain, manufacturing, and engineering, is critical for supply chain integration and alignment of processes, which minimises disruptions and reduces time-to- market. • AI: AI and machine learning (ML) will become increasingly crucial to supply chain planning and optimisation because of their ability to process vast amounts of data and provide real-time insights, allowing companies to respond swiftly to market changes and unforeseen disruptions.
This last bullet has become a very hot topic in industry. AI optimisation has been a cornerstone of supply chain, inventory and logistics planning for many years. With increases in computing power and the ability to connect planning systems to real-time data sources, companies now have an unprecedented ability to react to disruptions and evaluate multiple possible business trajectories using precision virtual twin models of their supply chain. companies willing to automate complex tasks oversight? I think this will be something that we will learn a lot more about in 2025! The Bottom-Line for 2025: We will workers to help, but it is clear that companies are going to have to continue to invest in this landscape. Companies leveraging new technologies and adapting to changing geopolitical realities, will be best positioned to succeed in the evolving global economy. However, it’s important for companies to work in partnership with technology vendors that have the right experience and knowledge, to ensure the best route towards digital transformation.
DELMIA
www.3ds.com/products/delmia
automationmagazine.co.uk
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