Top 10: Predictions for 2025

Supply chains form the backbone of global trade, ensuring goods and services move seamlessly across markets. As we look to the year ahead, the industry faces both opportunities and challenges that demand thoughtful preparation. 

Strategic planning isn’t just a box-ticking exercise; it’s the key to staying ahead in a rapidly-shifting landscape. From adopting cutting-edge AI tools to embracing sustainable practices, companies have a golden chance to redefine efficiency and resilience. 

Here, Supply Chain Digital hears from industry professionals on which trends they believe will be crucial to success in 2025. 

10. Increased logistics competition

Ben Segelman, Head of Portfolio Management at Brookfield, predicts heightened logistics competition in 2025, “worsened by the rush for data centre space driven by AI”.

He adds: “To protect themselves from growing rates and competition for space and labour, organisations must make premises decisions that will future-proof their operations for the next 10 or 20 years.”

Brookfield is on track to exceed four million square metres worth of space across 80 sites in Europe, as competitive pressures drive businesses to streamline processes.

9. Pressure mounts in race for energy

“The warehouse and logistics industry must focus on making a sustainable energy future,” says Maria Torrent March, Head of Warehouse & Logistics at Iron Mountain. 

A future-proofed energy system enhances supply chain resilience, enabling businesses to better withstand disruptions caused by energy shortages or price fluctuations. 

“As Iron Mountain looks to the year ahead, we can expect to see more organisations finding new ways to future-proof their own infrastructure, address the energy challenges and reach their sustainability goals,” Maria adds.

8. Employee upskilling becomes critical

With the uptake of AI and automation capabilities anticipated to increase (read on to find out more), training employees to co-work with this technology looks set to become critical. 

Matt Elenjickal, CEO at FourKites, explains: “AI, automation and upskilling will be critical in 2025. AI and automation are not the enemy and have the potential to create new jobs and improve existing roles.
“In order for supply chain companies to fully benefit from these technologies, however, they must invest in upskilling their employees.”

7. IoT standardisation embedded in supply chains

Stephen Dyke, Principal Consultant Manager at FourKites, highlights that recent, large-scale foodborne illness outbreaks, such as those at McDonald’s, are “driving an increased focus on traceability and transparency”. 

As a result, he believes embracing IoT standardisation will become critical for supply chain leaders: “We’re likely to see higher investment in technology, such as IoT standardisation, as well as tighter sourcing scrutiny as companies ensure they have the right protections in place.”

6. Driver shortage continues

“The driver shortage of 2024 will continue to cast shadows in 2025,” predicts Christopher Keating, SVP of Trimble Transportation Europe. 

However, he foresees some solutions potentially being found: “AI will help, but addressing this complex issue will require a multi-faceted approach that combines recruitment, technology and operational efficiency.” 

Supply chain leaders will need to optimise driving time with the help of AI to improve those vital staff retention rates, meaning investing in the right solution will become more crucial than ever.

5. Supplier diversity becomes a necessity

According to Aylin Basom, CEO of Supplier.io, supplier diversity moved from a ‘nice to have’ to a ‘need to have’ in 2024, as supply chain risks heightened worldwide. 

Looking ahead, Aylin asserts: “2025 will see more companies realising that diverse suppliers contribute not just ethical value but significant business benefits, like positive impacts on corporate culture and supply chain competitiveness.” 

In this ongoing era of disruption, having a diverse pool of suppliers is a clear solution for industry leaders to turn to in 2025.

4. Focus on automation increases

According to Vanderlande, “mid-market retailers leapfrogged from manual to fully-automated greenfield warehouses” in 2024. 

Looking ahead to 2025, Andy Lockhart, Director of Strategic Engagement for North American Warehouse Solutions at Vanderlande, describes a “notable and ironic” shift. 

He predicts: “Leasing options – something which makes today’s automated mobile robots (AMRs) particularly attractive to warehouse operations that need to quickly adapt with greater throughput while keeping CapEx costs in check – will only accelerate this trend extending the payout period for suppliers.”

3. AI no longer ‘nice-to-have’

AI was the buzzword of 2024, but how will applications evolve in 2025? 

Pushpinder Singh, from IBM Consulting, believes AI will be “embedded across the supply chain, as leaders prioritise end-to-end visibility and faster decision-making”.

But, he continues: “Successful AI adoption will require strong stakeholder buy-in and alignment across departments.

“As CSCOs move from reactive to proactive strategies, Agentic AI” – which autonomously performs tasks, adapts, solves problems and acts on environmental data without requiring human intervention – “will emerge as a key enabler, increasingly taking on end-to-end execution.”

2. Sustainability takes centre stage

Sustainability in supply chains minimises waste, lowers costs, meets consumer demands, mitigates risks and enhances brand reputation through responsible and ethical business practices.

It's no wonder, then, that Darcy MacClaren, a Global Supply Chain expert at SAP, believes it will become even more central to operations in the new year. 

“In 2025, transparency across supply chains will be essential for mitigating risk and achieving sustainability goals,” she says. “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.”

1. Mitigating disruption becomes top priority

“In 2025, navigating supply chain disruptions – including economic conditions, labour and regulatory issues, and geopolitical tensions – will continue to take centre stage for leaders,” asserts Nari Viswanathan, Senior Director of Supply Chain Strategy at Coupa. 

Last year seemingly had everything when it came to supply chain disruption, from conflict in the Red Sea to hurricanes in the US, prompting leaders to leverage technology to mitigate future disruption. 

“More emphasis will be placed on strategic planning to ensure they're staying on track,” Nari continues. “While the economy is strong, businesses must be strategic when navigating near- and medium-term challenges.

“Leaders will need to think ‘bigger picture,’ planning three to five years out and focusing on moving with disruption rather than against it. AI will be a crucial driver of innovations in the supply chain by running risk scenarios faster, more accurately and more often.”

To read the full article in the magazine, click HERE.

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