Synovia Digital

Ch-ch-ch-Changes! The Digital Shake-up of the Supply Chain for 2024

Supply chain management is undergoing a radical transformation as new technologies, data sources, and customer expectations reshape the industry. Organizations that want to stay ahead of the curve and gain a competitive edge need to embrace the trends that will define 2024 and beyond.

In this article, we will explore six key trends that will impact supply chain management in the next few years, based on the insights from KPMG professionals. These trends are:

  • 1. Generative AI: A subset of AI that can process large and complex data sets, learn from them, and generate solutions and recommendations for supply chain optimization.
  • 2. Low touch planning: A new approach to supply chain planning that leverages AI and advanced analytics to automate and streamline the end-to-end planning process, improving predictability, efficiency, and resilience.
  • 3. Data excellence and transparency: A critical requirement for effective supply chain management, as data availability, quality, reliability, cadence, and consistency enable informed decision making, process optimization, and risk mitigation.

(I’ll add a tiny stop here to explain what “Tiers” in suppliers are before bullet-point 4:

Tier 1: These are your direct partners, the companies you interact with regularly and source materials or products from. They’re the first link in your supply chain.

Tier 2: One step deeper, these are the suppliers to your Tier 1 partners. They provide essential components or sub-assemblies that become part of your final product. While you may not interact directly, their performance impacts your operations.

Tier 3: Diving further, Tier 3 suppliers provide materials or services to your Tier 2 partners. They may be involved in raw material extraction, manufacturing specific components, or providing specialized services. While their influence on your end product might seem distant, understanding their practices and risks is crucial for a truly resilient supply chain.

Done? Good! We can continue on point 4!)

  • 4. Visibility beyond Tier 1: A strategic imperative for supply chain resilience, as breaking the barrier of visibility beyond the first tier of suppliers allows organizations to gain deeper insights into their extended supply chain ecosystem, identify and address potential risks, and drive ESG goals.
  • Low-code platforms: A new paradigm for supply chain software development, as low-code platforms enable business users with little technical knowledge to quickly build, test, and implement new applications and capabilities, enhancing agility and adaptability.
  • Scope 3 ESG data reporting: A growing regulatory and reputational pressure for supply chain sustainability, as organizations are expected to collect and report their Scope 3 emissions data, which account for the majority of their carbon footprint across their entire value chain.

These trends will shape the future of supply chain management and require organizations to rethink and redesign their core business processes, operating models, and technology architectures. To succeed in this rapidly changing environment, organizations need to act now and start their transformation journey sooner rather than later.

At Synovia Digital, we help organizations navigate the complex and dynamic supply chain landscape with our ERP solutions and supply chain consulting services. We can help you leverage the latest technologies, data analytics, and best practices to optimize your supply chain performance, reduce costs, and create value for your customers and stakeholders.

If you want to learn more about how we can help you prepare your supply chain for 2024 and beyond, contact us today for a free consultation.

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