SAP's Darcy MacClaren Gives 2025 Supply Chain Predictions

In 2024, the supply chain space has largely been defined by a focus on resilience, digital transformation and sustainability.

After a string of disruptions, companies have prioritised agility and flexibility, adopting technologies like AI, machine learning and predictive analytics to improve demand forecasting and operational efficiency.

Automation, including robotics and IoT devices, continues to enhance productivity in warehouses and transportation, while blockchain technology is ensuring greater transparency and traceability across supply chains.

Nearshoring and reshoring strategies have become increasingly popular as businesses aim to reduce dependency on distant suppliers, shorten lead times and lower risks associated with geopolitical tensions and climate-related disruptions.

Meanwhile, sustainability remains a top priority. Companies are implementing eco-friendly practices, such as reducing carbon emissions, optimising logistics networks and adopting circular economy models.

As the year draws to a close, Darcy MacClaren, Chief Revenue Officer at SAP Digital Supply Chain, offers her industry predictions for 2025.

AI will be the foundation for supply chain resilience

In the coming year, organisations will take significant strides toward building autonomous, AI-enabled supply chains to enhance operational efficiency and responsiveness.

As companies navigate more complex supply chains, AI-enabled programmes will be essential for them to stay competitive and efficiently address issues as they happen. With this, the use of digital twins will become more prevalent, allowing companies to simulate scenarios, analyse performance in real-time and make data-driven decisions to optimise operations. We’ll see organisations leverage advanced AI capabilities and digital twins to improve lead-time predictions, analyse production errors faster and monitor asset wear and tear. 

By ensuring that AI is built-in, relevant, and responsible, companies will be able to deliver measurable business outcomes even when disruption feels like part of the daily routine.

Organisations that leverage AI to become more resilient will gain an enhanced ability to sense, recognise and react to disruptions as businesses continue to navigate an increasingly complex supply chain landscape.

Anti-fragile supply chains will become the new normal

In 2025, we will see a significant increase in organisations adopting anti-fragile supply chain strategies to navigate growing complexity and improve their ability to adapt to unforeseen challenges.

As this year has taught us, extreme weather events that will disrupt supply chains will continue – likely driven by increased climate change. By implementing data-driven technologies aimed to increase resiliency, such as AI and machine learning, businesses gain the real-time insights needed to identify emerging supply risks and proactively respond to potential disruptions.

While it’s impossible to anticipate every disruption, organisations that embrace this transformation will see widespread benefits, setting new benchmarks for supply chain operations.

With potential policy changes on the horizon, leaders must prioritise transparency to reduce risk and boost sustainability 

In 2025, transparency across supply chains will be essential for mitigating risk and achieving sustainability goals. Enhanced connectivity with everyone and everything in your ecosystem will increase transparency and traceability in supply chains. Leaders will prioritise visibility and transparency to gain real-time insights, enabling them to monitor operations and safeguard against unethical practices.

As the coming year brings a shift in policy and governance priorities, technology solutions can help businesses track their compliance with constantly-changing regulations to back up their sustainability claims.

For instance, in the US, we will most likely see an incentive to make it more appealing to produce and buy domestically and companies may need to rework how they accurately track materials at every step, reinforcing accountability and supporting sustainable practices throughout the supply chain. Improved visibility will also help to manage risks and enhance collaboration among supply chain partners.

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