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5 must-know critical trends transforming supply chain and logistics management

Executive Education, Upskilling

Introduction

Why is staying ahead of the curve essential in supply chain and logistics management? The answer is simple: the industry is undergoing rapid transformation. New trends are emerging constantly and these advancements are compelling working professionals to upskill and grow in their careers to stay competitive.

Content

1. Integration of the breakthrough technologies – AI and Blockchain
2. Automation and Robotics – Beyond mere digitisation
3. Big Data and Analytics – Transforming the supply chain landscape
4. The Sustainability imperative – Greening the supply chain
5. Drone deliveries – Revolutionising the last mile

Today’s business environment is all about moving fast. Supply chains are no exception. New trends are constantly emerging and staying on top can feel overwhelming. This article will explore five key trends transforming supply chain and logistics management, from cutting-edge tech to eco-friendly practices. With this knowledge, you can gain a substantial edge and future-proof your career in this dynamic field.

  1. Integration of breakthrough technologies – AI and Blockchain

    The rapid tech boom is forcing a rethink of supply chain strategies. By 2025, Gartner predicts half of supply chain companies will need leadership with strong technical skills. Blockchain technology and AI are poised to transform the industry, with market research suggesting significant growth (Zion Market Research: Blockchain technology—US$3.15B by 2028; AI—US$12.8 trillion by 2028).

    Blockchain is evolving from a trendy term to a game-changer. Initially used for asset tracking and transparency, it’s now maturing. Consumer goods giants like Unilever and Nestle are leveraging it to create new, efficient business models.AI is helping companies achieve next-level performance in supply-chain management. Once limited to voice assistants, AI now tackles complex tasks like automation, predictive analytics and even autonomous vehicles. McKinsey reports that early adopters using AI have seen a 15% reduction in logistics costs, 35% less inventory and a 65% improvement in service levels.
  2. Automation and Robotics – beyond mere digitization

    The evolution of automation and robotics within supply chains represents a transformative shift far beyond mere digitisation. By automating repetitive tasks through advanced technologies, such as intelligent machines, organisations can accelerate processes by up to 30% (source: McKinsey & Company) while minimising errors by as much as 80% (source: Robotics Business Review). This not only frees human workers for strategic initiatives but also optimizes workforce allocation.

    Integration of robotics further enhances operational efficiency, particularly in tasks requiring precision and safety, from inventory handling to complex logistical manoeuvres. Robots can handle these tasks with increased accuracy and reduced risk of injury, ensuring a safer work environment.

    This technological synergy doesn’t stop there. It also reduces long-term costs, enhances operational resilience and revolutionizes supply chain dynamics.
  3. Big Data and Analytics – Transforming the supply chain landscape

    Just like other industries, data analytics is fast transforming supply chain and logistics management. By harnessing data, companies can make informed decisions that significantly enhance operational efficiency, cost reduction and customer satisfaction.

    The Gartner Supply Chain Symposium/Xpo highlighted the growing importance of data-driven decision-making. It found that 60% of CSCOs are expected to leverage real-time data for faster, more accurate decisions. This underscores the need for companies to adopt data-centric approach.

    By prioritising data collection, analysis and utilisation, businesses can unlock a world of possibilities within their supply chains. From improved tracking and reduced errors to anticipating disruptions and building resilience, big data empowers companies to achieve significant competitive advantages.
  4. The Sustainability imperative – Greening the supply chain

    Consumers are increasingly expressing their preference for sustainable and ethical products. This shift in behaviour is having a major impact on supply chains and logistics. Imagine companies like Patagonia openly sharing the environmental impact of each item and Uber showing its users alternative ways to get around besides hiring their cabs, such as metro and bus lines, due to their concern for the environment. This extends beyond just information – businesses are actively reducing their footprint.

    According to an Accenture survey, supply chains are the key battleground in the fight against climate change. They generate around 60% of all carbon emissions globally, so addressing supply chain sustainability is an essential step in achieving net zero emissions.

    Supply chain leaders need to become sustainability champions. They must track product origins and ensure ethical sourcing. Technology like AI can help identify areas for improvement, optimising processes and minimising waste. Collaboration is also key – working with suppliers and partners to collectively achieve sustainability goals. Ultimately, this shift towards sustainable practices isn’t just about the environment; it’s about achieving cost savings, enhancing brand reputation, and attracting a loyal customer base.
  5. Drone deliveries – Revolutionising the last mile

    The e-commerce explosion has disrupted the supply chain and logistics sector. Consumers, accustomed to rapid online shopping experiences with ever-shorter delivery times, are increasingly open to adopting new technologies that meet their need for speed and convenience. Drone deliveries are one such area that is gaining significant traction.

    The potential benefits of drone deliveries extend beyond just speed. Drones offer the potential to improve safety, reduce congestion and support growing demand. 

    While Unmanned Aerial Vehicles (UAVs) have applications across various industries, e-commerce is expected to be the biggest growth driver. Drones are particularly well-suited for last-mile delivery due to their ability to offer flexible scheduling (Drone deliveries can be scheduled at the customer’s convenience, even outside of traditional business hours), 24/7 operations (Weather permitting, drone deliveries can potentially operate around the clock, further enhancing convenience) and improved customer service (Faster delivery times and the novelty of drone deliveries can lead to a more positive customer experience).

    With their transformative potential, drone deliveries are another compelling example of how technology reshapes the industry.

What’s Next

Logistics and supply chain management have evolved beyond warehouses and delivery trucks. It’s a rapidly growing sector with immense career potential. These emerging trends are driving a strong demand for professionals skilled in utilising technology, data analytics, and sustainability practices.

The Executive Programme in Supply Chain and Logistics Management (EPSCLM) from IIM Ahmedabad provides an unparalleled opportunity for those looking to understand the latest advancements in logistics and supply chain management.

This 6-8-month programme provides invaluable insights into comprehensively understanding these critical trends, positioning you for leadership roles in the evolving industry landscape.

EPSCLM offers a dynamic learning experience featuring interactive pedagogy. This includes lectures, case studies, simulations, and assignments facilitated by IIM Ahmedabad’s expert faculty through live interactive sessions that can be attended at VCNow Learning Centers and through short campus modules.

Explore more about the programme here.


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