As we approach 2024, the intricate dance between technology, sustainability, and resilience will shape the future of supply chains. This blog post unveils the top supply chain trends that will redefine the industry going forward; from the continued integration of advanced technologies to the growing emphasis on ethical practices, these pivotal shifts will have a big impact on logistics, procurement, and distribution strategies.
Join us on a journey through the anticipated trends that will influence the way businesses orchestrate their supply chain operations in 2024
1. More Focus on End-to-End Digital Supply Chain Visibility
During its annual Connect conference, the Association for Supply Chain Management (ASCM) recently revealed that the digital supply chain earned the number-one spot on its list of 2024 supply chain trends. One of the driving factors behind the growth of the digital supply chain is its ability to enable end-to-end supply chain visibility.
According to a survey by McKinsey & Company, 45% of supply chain leaders reported a lack of visibility into their upstream supply chain, making risk management a challenge. To solve this problem, the digital supply chain and technology integration will take center stage in 2024. Some of the digitization initiatives that will help improve supply chain visibility include:
- Data integration from various sources, such as Customer Relationship systems (CRM), Enterprise Resource Planning (ERP) systems, Warehouse Management Systems (WMS), and more.
- System integration among different software systems used by manufacturers, suppliers, and other key players in the supply chain to enhance communication.
- Technology integration with emerging technologies like artificial intelligence (AI), blockchain, and cloud computing to enhance data scalability, accessibility, and security.
2. Artificial Intelligence Will Continue to Grow
AI saw an explosion in popularity in 2023, and that hype isn’t going away any time soon. According to a Research and Markets report, AI-enabled supply chains have proven to be over 67% more effective than their non-AI counterparts, boasting less risk and lower costs overall. AI has also played a crucial role in improving sustainability in manufacturing in recent years, a trend that we expect to continue in 2024 and beyond.
AI has lots of applications within your supply chain, and new use cases will continue to reveal themselves as adoption grows and new solutions enter the market. Some of the benefits you can expect to see from the use of AI in your supply chain include the following:
- More accurate inventory management
- Improved warehouse efficiency
- Enhanced safety and risk management
- Reduced operational costs
- On-time product delivery
3. Sustainability in Global Supply Chain Management
The growing awareness of Environmental, Social, and Governance (ESG) issues will make sustainability a top supply chain trend in 2024 as legal entities continue to put more stringent measures on non-compliant practices. Some of the sustainability-focused strategies businesses should focus on in their supply chain management include:
- Implementing rigorous supplier audits to prevent supply chain risks, such as ensuring traceability in materials and supplier inventory for easier decision-making in recalls and returns.
- Watching out for financial sanctions on countries in crisis.
- Ensuring they uphold human rights in their supply chain, as Norwegian and German laws will be holding companies accountable for violating human rights along their supply chain.
- Adopting emissions reduction measures along their supply chains to comply with the 2023 SDG Summit declaration.
Head Into 2024 With Confidence with Asia Quality Focus
More than ever before, supply chain management requires cooperation, transparency, and trust between all parties. If you’re looking to improve your supply chain in 2024, a trusted third-party quality control company like AQF can help.
We offer thorough quality inspection services and supplier audits to ensure your suppliers meet all of your expectations and deliver your finished products on time. Our team of global experts can help you create a tailored quality control program that sets your business up for success in 2024 and beyond. To learn more about our capabilities, download our services guide or contact our team today.