Have you ever wondered how the top industries of our time have never struggled with global supply chains?
As we approach 2024, the supply chain landscape is going through some major changes, some driven by tech advancements and some by the changing market. These changes are what help industries manage their supply chains. According to think tanks like Gartner, there is an emphasis on transparency, predictive analytics, automation, and sustainability when it comes to supply chain management. Another report by ASCM states that the increasing focus on digital supply chain transformation emphasises the importance of sustainable networks. With such crucial changes in the near future, it is important to stay informed about the top supply chain trends, especially if individuals want to make a career in supply chain management. These trends are going to be the pillars of this industry in 2024 and beyond.
Top 5 Supply Chain Trends in 2024
Let’s look at the top 5 Supply Chain trends that will shape the year 2024 for a lot of the top industries:
Blockchain technology creates a decentralised ledger of all network transactions. It ensures that transactions are visible, secure, and untampered with. It helps prevent fraud and easily traces all transactions in the future. According to Gartner, this digitalised ledger system will experience rapid expansion in the near future. The global supply chain management market was worth $85.7 million in 2018 and is predicted to reach $2,674.9 million by 2024, increasing at an 80.4% CAGR. These figures clearly suggest that this sector has a lot of future potential!
As the world is still trying to recover post-pandemic, more companies are using robots and AI due to falling prices and AI advancements. Automation has proven to become the cornerstone for efficiency. Robots are being used in various sectors, from healthcare to manufacturing. This automation has reached a new era, where robots/AI are coexisting with human minds. Humans are learning to embrace this new technology with harmony, making it an indispensable tool. According to a report by Ernst and Young, the average price of an industrial robot has reduced by half, from $47,000 in 2011 to $23,000 in 2022. This cost is said to further reduce by a staggering 50-60% in 2025. If you are thinking of making a career in supply chain management, now is the time!
Optimised Demand-Supply Alignment
This trend focuses on the use of advanced analytics and AI to predict demand more accurately and adjust supply chain operations accordingly. This ensures that supply meets demand optimally, reducing waste and costs. In 2024, more and more industries will be using this technology to match the increasing demands with supply. In 2022, the global market for demand planning solutions was approximately $3.60 billion and rose to $4.05 billion in 2023. It is set to rise to $6.22 billion in 2027 at a growth rate of 11.35%. This rate of growth indicates that the need for a career in supply chain management will increase substantially.
Customisation in the supply chain is tailoring products or services to meet the individual needs of consumers. This trend is driven by the customers’ demands for more personalised products. All types of companies, including software companies, retail companies, or even financial service companies, often employ mass customisation techniques due to higher demands.
A great example of mass customisation is the clothing industry. There are many clothing factories that use machines that are controlled by computers to cut and stitch fabrics, matching the required body measurements.
Drones are one of the most interesting inventions in the last few years. Even drones have become more advanced each year. They are used to distribute supplies, particularly in distant places. They are faster and more efficient than other traditional forms of transportation. This supply chain management strategy is expected to gain popularity as customer demand for speedier delivery develops. Drone transportation had a market value of $36.79 million in 2019 and is predicted to reach $1,626.98 million by 2027, increasing at a CAGR of 60.6%.
The evolution of supply chain management is undeniable, its future full of innovations and technological advancements. As explored above, the trends for 2024 are not only groundbreaking but also important for companies trying to stay ahead of the competition.
A career in supply chain management may be the ideal option for those looking to make this field their primary career choice. However, to become a professional, you must have the proper supply chain training, expertise, and abilities. Pursuing a digital supply chain certification or engaging in comprehensive supply chain management training can provide the necessary edge. Now is the time to invest in your future in this ever-evolving industry!