The future of supply chain management is constantly reshaped by challenges that keep industry leaders up at night. Everything from geopolitical instability and global inflation to labor shortages and sustainability pressures are dictating evolving rules for advancements like AI and a pathway to supply chain resilience.
What bold moves must CEOs and supply chain leaders make today to ensure survival tomorrow?
During a candid executive panel at Logility’s virtual event, LogiCon24, three supply chain experts answered this question and many more with an air of urgency. They dive into current pressures as well as opportunities for operating with resilience, agility, and continuous innovation. The overriding theme? Resilience. Let’s get into the thought-provoking dialogue.
Supply Chain Resilience Is a Must-Have
Customer preferences and supply chain disruptions change faster than ever, driving the urgency for greater supply chain resilience and business agility. Working for advanced flexible packaging manufacturing operations has given Angie Taylor, Vice President of Sales Operations and Supply Chain at PPC Flex, a first-hand view into the impact of working directly with customers when producing made-to-order products.
“With all the changes going on in the world as well as supply chain disruptions, ingredient shortages, and demand for better sustainability, a lot is changing daily,” Taylor said. “Making sure we have the right information and data to stay ahead of that is critical for us – whether updating our SKUs for our demand planners and looking at new demand signals or resourcing raw materials with multiple suppliers.”
As every business knows, a lot of information must be digested quickly to deliver on customer demands and expectations, on time and with the right resources. For that reason, Taylor’s advice for staying ahead of the curve is to invest in information systems that support quick, insights driven decision-making.
Geopolitical Instability Is Everyone’s Challenge
The ever-evolving landscape of regulations, tariffs, and trade wars tops the list of concerns for most supply chain leaders. The summer 2024 Fortune/Deloitte CEO survey reported that 60% of CEOs have been worried about geopolitical instability over the last three seasons, with inflation ranking second (45%). And this pressure is filtering down to supply chain teams, who must rethink the global footprint to navigate it all.
Jim Kilpatrick, a partner from Deloitte, advises businesses to adopt digital approaches to visibility, collaboration, and risk management to rise to this moment.
“No organization wants unproductive assets or excess inventory tying up capital, which is why companies are doubling down on their digital approaches to resilience,” Kilpatrick said. “Initially, visibility into demand signals and potential risks is the goal. Then, they realize the importance of the flexibility to pivot when disruptions arise – whether reallocating resources or collaborating with suppliers, vendors, and partners to find new alternatives. Technologies like control towers and digital twins empower businesses to move beyond real-time dashboards and into predictive insights to act before a disruption occurs.”
The Labor Force Is Shifting
Another factor that is challenging the consistency of business outcomes throughout the year is the availability of labor resources – especially on weekends for manufacturers. This reality forces supply chain leaders to look hard at how their operations level out production capacity, manage inventory, and accelerate recovery from sub-supplier disruptions.
According to Sean Rierdon, Executive Director of Supply Chain at Clarios, overcoming such labor shortages requires a strategic pivot toward better resource planning and inventory management.
“We’ve seen a very significant shift, especially generationally, with younger employees moving into the manufacturing space. They’ve being very resistant to the weekend work,” Rierdon said. “Our supervisors use technology to check in with employees and condense schedules to fit within a Monday-to-Friday model. By building up inventory in advance of sales, we have the flexibility of scheduling employees on weekends only when needed, instead of making it a requirement.”
With more new talent coming into the workforce, the labor force will continue to evolve. That includes some of the issues that concern them and their futures.
Sustainability Is Non-Negotiable
Sustainability has become a critical pillar of supply chain strategy. Companies that ignore sustainable practices risk being left behind, especially as customer expectations and regulatory pressures intensify.
Taylor highlights how PPC Flex addresses sustainability, stating, “We’re constantly rethinking our packaging solutions to meet regulatory compliance and consumer demands for greener products. This requires collaboration across our entire supply chain ecosystem to ensure we’re moving toward sustainable outcomes.”
Kilpatrick emphasizes that sustainability isn’t just about compliance – it’s about resilience.
“In a Deloitte and Fortune quarterly survey, and for the last several surveys into 2024…60% of CEOs in responded that geopolitical instability was the number one issue that kept them up at night…45% of CEOs said inflation was number two.” Kilpatrick said. “Then the third one was increasing regulations, which does link to some degree to sustainability, but also to labor practices around the world, et cetera. In addition to resilience and sustainability, we’re seeing a number of companies revisiting their global supply chain footprints.”
As companies transition toward greener practices, using sustainable materials, reducing waste, and optimizing logistics for lower emissions are necessary to ensure long-term viability and meet rising consumer expectations.
AI Is the Future, But Start Small
The buzz around artificial intelligence (AI) and generative AI was palpable. And it’s a perfect fit for supply chains – there are volumes of data available, so many decisions to be made, and a wealth of possibilities for process and workflow automation. However, none of those opportunities materialize into supply chain resilience without the right strategy.
“You need to start small, maybe in a single facility or region, and show tangible ROI before scaling,” Rierdon suggested. “Senior leaders hear a lot about AI, but the key is to get started – put in an application, understand how your data flows, and build from there. Without that foundational work, you can’t move forward to more advanced capabilities like generative AI.”
Taylor agreed: “The challenge is leveraging massive volumes of data efficiently without overwhelming our teams. But before we can unlock generative AI’s full potential, master data management and governance must be heavily invested. It’s about ensuring data is accurate and high-quality enough to generate necessary insights faster than any human could by combing through spreadsheets.”
The message from our executive panel is clear: take the plunge but start with manageable projects. Whether using AI for demand forecasting or predictive maintenance, the panel stressed that AI is here to stay, and businesses that don’t adopt it will fall behind and miss out on supply chain resilience.
The Ultimate Lesson: Embrace Innovation, Build Resilience
Resilience, agility, and innovation are the cornerstones of future supply chain success. The top concerns that our panelists discussed aren’t just roadblocks – they’re opportunities for transformative and meaningful change.
So, whether you’re leveraging AI, managing risk, navigating shortages, or embracing sustainability, remember: the future of supply chain management lies in building adaptable, data-driven processes that ensure long-term viability and competitive advantage.
Want to hear the entire conversation? Sign up for the On-Demand, virtual experience LogiCon24 for more of this insightful panel discussion with Logility clients and partners.
