10-Step Agenda for Your Supply Chain: Securing a Successful 2025

Still reeling from a fraught 2024, where logistics supply chains were vexed by disruptions on the Red Sea, rail strikes, port closures, and knock-on effects from the Key Bridge disaster, supply chain and logistics decision makers are back to the drawing board laying out their 2025 strategies. 

This article aims to shed light on what’s in store for 2025, highlighting the 10 major trends affecting inbound logistics.

(1) Achieving Cost Efficiencies

Reducing costs and achieving efficiencies remains at the top of the corporate agenda.  We must keep a watchful eye on proposed tariffs and monitor the impact of higher costs and their potential to erode margins.

(2) Supplier Relationship Management

Achieving cost efficiencies without compromising quality and compliance depends on solid, transparent relationships with suppliers. Leveraging technology to enable stronger, mutually beneficial partnerships with suppliers will be key to driving success in 2025.

(3) Reshoring

With a consideration of tariffs being top of mind, many inbound logistics decision makers are currently enabling their companies to stockpile goods, but this is not a long-term option. To risk-proof the business, buyers need to consider nearshoring or reshoring, opting for suppliers with production facilities in locations that are not affected by tariffs or choosing U.S.-based businesses.

(4) Diversifying

In 2024, savvy teams were already working on diversifying their supply chain to help contain disruption. Many chose to look to emerging markets, for example, as new sources of raw materials, components, and products.

(5) Risk Management

Houthi attacks on vessels in the Red Sea, continued conflict in the Ukraine, Canadian rail strikes, and the closure of Ningbo Port in China exposed the vulnerabilities of the supply chain like only Covid-19 had before. Leveraging real-time data insights for strategic decision making has become a necessity. Fortunately, AI-driven supply chain visibility tools are now available to support businesses wanting to de-risk their operations.

(6) Artificial Intelligence (AI)

AI/Machine Learning (ML) is playing an increasingly important role in streamlining, automating, and simplifying tasks for supply chain managers. Whether it’s certification updates or proactively suggesting more favorable contract conditions, AI is helping analyze huge amounts of data at speed, while improving efficiency and timely decision making.

(7) Managing Security Threats

As businesses become more reliant on data and the Cloud, they are inevitably more susceptible to cyber threats. Cybersecurity investments are therefore increasingly critical to help safeguard business data and remain compliant.

(8) Regulatory Compliance

As the geopolitical situation continues to evolve under the influence of new elections, global conflicts, and more, businesses need to remain highly receptive to potential changes in regulations that affect them or their suppliers further down the chain.  Organizations do not want to fall foul of regulators or accidentally make buying decisions that are in contrast to their own ethical and sustainability policies.

(9) Sustainability

Sustainability and broader ethical accountability are key to customer loyalty and long-term brand credibility. Whatever the sector, investors and stakeholders will continue to see businesses’ sustainability efforts as critically important. Logistics teams must work alongside suppliers to improve their ethical sourcing all along the supply chain.  Collaboration to identify new, more sustainable materials or processes and innovating together can be transformative.

(10) Scope 3

Many businesses still struggle to monitor and manage Scope 3 emissions. These are emissions indirectly resulting from the supply chain and typically account for the majority of a corporation’s carbon footprint. Visibility rarely extends beyond Tier 1 suppliers, leaving businesses exposed to potential noncompliance. We will see many more businesses ensuring that technology is in place to help increase visibility to GHG emissions.

Finally, the learning curve provided by 2024 was steep, but decision makers in purchasing and supply chain managers are now better prepared to face 2025 with the right tools to help them make rapid, data-driven decisions to remain competitive and protect their business in volatile times.