Supply chains in 2035 will be localized, green and automated by data-driven digital innovation
In the coming years, supply chains will need to undergo significant changes if they are to deliver value to businesses in what will be a complex, fast-moving, fragmented, consumer-centric environment. Now is the time to prepare to adapt and take action to initiate change so your supply chain can evolve to meet the challenges of changing geopolitical conditions, customer demand and regulation – not to mention the increase in personalization and the need to embrace sustainability and the circular economy.
We envision a radical shift of global supply chains to atomized “Centers of Gravity”. Here are the four statements that articulate our view of how the supply chain of the future will be radically different from today.
Sustainability will be non-negotiable and integrated into every part of the supply chain, with organizations making circularity an integral part of their operating model.
Global supply interdependencies will lose importance – the future supply chain will move from a global model to multiple Centers of Gravity.
Data will be the heart and backbone of every business model and will drive intelligent, autonomous, and predictable supply chains.
Energy efficiency, new freight technologies and local procurement will result in completely new logistics and transport models.
2035
The future target operating model is not an evolution of the past. It is a reset—a shift to an adaptive, Demand Driven, AI-native architecture capable of sensing change, making decisions, and executing in real time.
A technological revolution is reshaping the landscape of industries, economies, and societies at large. Welcome to the age of the “Robo Takeover,” a transformative era where artificial intelligence (AI) and robotics are no longer confined to the realm of science fiction. These rapidly evolving technologies are poised to infiltrate and revolutionize every aspect of our value chains.
Regulations enforcing environmental and social protection in the value chain have increased worldwide over the last five years. Companies must now be prepared to report transparency on their practices to governmental institutions, extending beyond their business areas. This requires the right approach and support from technology.
Today’s supply chains are on the brink of a fundamental transformation due to the challenges of geopolitical conditions, customer demand and regulation. The pressure is on supply chains to deliver value in a complex, fast-moving, fragmented, sustainable, consumer-centric environment.
A new model is emerging: The Centers of Gravity. These consists of multiple micro-chains that integrate production, processing, and distribution of products.
Today’s customers want more than speed and quality from their brands. Environmental, social and governance (ESG) and diversity and inclusion (D&I) are key to customer demand. To meet that expectation, brands must deepen supply chain traceability; harnessing technology to get closer to their raw source materials and trace forward.