As we approach 2025, supply chains are poised for a transformation driven by automation, AI, and machine learning. In this blog, we’ll explore the key trends and strategies shaping the future of supply chains and how businesses can prepare to navigate this dynamic landscape.
Table of Contents
Overview of current supply chain landscape
Before delving into the specifics of technology applications in supply chains for 2025 and beyond, it’s important to take a step back and examine the current challenges and trends shaping the landscape today.
Challenges
Limitations in the application of technology
The supply chain industry is inherently complex, characterized by multiple systems and dispersed data. Bringing together information from diverse sources, including suppliers, manufacturers, logistics providers, and internal systems, often feels overwhelming. Many organizations operate within intricate supply chain ecosystems involving various partners and technologies (The MBA Institute). This complexity makes seamlessly integrating IT solutions with existing processes a significant challenge. As a result, companies aiming to enhance their supply chain systems through technology frequently struggle to select the right solutions and vendors that align with their specific needs.
Manual dependencies
Relying on manual data entry and paper-based systems significantly undermines the efficiency of supply chain processes. These outdated practices not only slow down transactions but also contribute to higher error rates, negatively impacting overall operational performance. Studies indicate that the error probability in manual data entry ranges from 18% to 40%. Beyond the risk of errors, managing supply chain systems manually often requires a large workforce, driving up personnel and logistical costs considerably.
Safety and security concerns
According to Gartner, by 2025, nearly 45% of organizations worldwide will face attacks on their software supply chains, a staggering threefold increase compared to 2021. These attacks can result in severe consequences, including data breaches, operational disruptions, revenue loss, and harm to brand reputation. A notable example is the 2020 SolarWinds attack, which impacted over 30,000 organizations globally, underscoring the critical need for robust security in supply chain management.
Trends and vision for 2025+
Growing adoption of automation
The RPA market was valued at $2,942.7 million in 2023 and is expected to expand at an impressive CAGR of 39.9% from 2023 to 2030 (Grand View Research). Over 70% of professionals view RPA as essential for optimizing supply chain operations. RPA is poised to become a key focus for supply chains in the coming years, as it minimizes manual tasks, allowing employees to concentrate on decision-making activities, ultimately enhancing business operations.
Increasing role of AI, ML and analytics in supply chain optimization
By 2025, technologies like AI, ML, and advanced analytics will revolutionize supply chain management. These tools enable accurate demand forecasting, predictive maintenance, inventory optimization, and enhanced logistics and warehousing operations (C5i). AI and ML address critical supply chain challenges, improving efficiency, reducing costs, and meeting evolving market demands, making them essential for future growth.
Gen Z’s Influence as a tech-savvy workforce driving digitalization
Technology is only as effective as the people who use it, underscoring the growing trend of Gen Z entering the workforce. According to PwC, 84% of Gen Z respondents express positive feelings about technology’s impact on their jobs.
Gen Z’s deep familiarity with technology makes them well-suited to spearhead digital transformation within supply chains. Their affinity for innovative digital tools fosters collaboration and streamlines processes, positioning them as key assets for modernizing operations and boosting efficiency. With a strong preference for integrated project management systems and virtual work platforms, Gen Z contributes to enhanced productivity and better decision-making, driving significant improvements across supply chain operations.
Supply chain roadmap: Milestones and expert guidance for 2025+
Given the challenges and trends outlined above, Chief Supply Chain Officers (CSCOs) and Heads of Supply Chain Strategy must proactively prepare to seize the opportunities offered by automation while responsibly managing its impact on the workforce. To support this effort and guide CSCOs in defining the right path forward, akaBot has compiled Gartner’s research findings to recommend a strategic roadmap for success.
Automation by 2025
As highlighted, RPA is becoming a critical demand for modern supply chains. Over the past 40 years, organizations have focused on automating routine administrative tasks through ERP systems and physical operations via industrial automation and robotics. Now, RPA is emerging as a pivotal tool for streamlining essential processes:
- Procure-to-Pay: Automating invoice validation and payment approvals.
- Order management: Simplifying order processing and tracking.
- Customer claims: Expediting dispute resolution workflows.
Key Advice for CSCOs:
- Adopt cross-functional strategies: Ensure automation initiatives are outcome-driven and span across departments.
- Develop digital talent: Build a skilled workforce by training employees to manage and optimize digital tools.
- Invest in scalable platforms: Choose RPA solutions designed to support future Hyperautomation initiatives.
Augmentation by 2030
In the next five years, RPA will evolve by integrating more mature technologies like AI and ML, transforming into intelligent automation. This advancement will allow the automation of complex tasks and decisions that typically require human judgment, such as selecting between multiple planning scenarios.
As a result, human capabilities will be greatly expanded, enhancing the accuracy and speed of decision-making, such as extracting insights from terabytes of real-time data. By 2030, companies will rely on human expertise to control and orchestrate the automated supply chain, with technology handling most of the heavy lifting.
Key Advice for CSCOs:
- Develop a Hyperautomation strategy: Create a comprehensive enterprise-wide strategy for Hyperautomation, aligning it with KPIs
- Partner for AI/ML integration: Collaborate with technology providers to seamlessly integrate AI and ML into your automation framework.
- Cultivate a culture of innovation: Foster an environment that encourages the adoption of advanced tools and technologies to drive continuous improvement.
Autonomy post-2030
The ultimate goal for supply chains is autonomy, where all traditional human low-value activities will be fully automated. This vision will likely materialize after 2030, as AI matures and “human augmentation” progresses, enabling a fully autonomous supply chain. In this future, direct human involvement will be minimal, aligning perfectly with the expectations of digitally native Gen Z employees accustomed to seamless, technology-driven environments.
Key Advice for CSCOs:
- Establish a governance model: Develop a framework to oversee autonomous systems, ensuring ethical AI use and adherence to regulatory standards.
- Upskill employees for strategic roles: Focus on preparing employees for high-value, strategic positions that require human insight and judgment.
- Evaluate and optimize AI models: Continuously assess AI models to ensure they are performing optimally and evolving in line with technological advancements.
Conclusion
By 2025, supply chains will be powered by automation, AI, and ML, enhancing operational efficiency and decision-making. This approach will build agile, efficient, and resilient supply chains that meet the evolving needs of businesses and digitally savvy employees.
akaBot (FPT) is a leading automation solutions provider in Vietnam, serving over 4,000 companies across 21 countries. Specializing in AI, IDP, OCR, and Machine Learning technologies, akaBot accelerates digital transformation for its clients. It has received prestigious recognitions, including being named a “Major Contender” by the Everest Group RPA PEAK Matrix® (2023, 2024), “Voice of the Customer” by Gartner Peer Insights, and ranking among the Top 6 Global RPA Platforms by Software Reviews.
Let akaBot drive your business’s supply chain evolution! Contact us today!
akaBot (FPT) is the operation optimization solution for enterprises based on the RPA (Robotic Process Automation) platform combined with Artificial Intelligence, Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 21+ countries, across 08 domains such as Banking & Finances, Retail, IT Services, Manufacturing, and Logistics…, akaBot is featured in “Voice of the Customer” for Robotics Process Automation” by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, Everest Group’s RPA Products PEAK Matrix® 2023, etc.
Leave us a message for free consultation!
