94%
of companies reported revenue loss due to supply chain disruptions in 2024.
~25%
longer average delivery times for raw materials persist compared to pre-pandemic levels.
63%
of companies faced disruptions due to climate change events in the past year.
Only 6%
of businesses have achieved full end-to-end visibility into their supply chain.
Top Supply Chain Risks in 2024
Geopolitical conflicts, talent shortages, and regulatory complexity were the primary concerns for supply chain leaders. These risks highlight the need for greater resilience and adaptability in a volatile global landscape.
The Impact of AI Integration
Companies heavily investing in Artificial Intelligence are seeing significant operational improvements. AI-powered analytics reduce costs, optimize inventory, and boost service efficiency, providing a clear competitive advantage.
Organizing for Visibility: The Digital Twin Process
To combat the lack of visibility, leading firms are implementing Digital Twins—virtual replicas of their entire supply chain. This technology enables real-time monitoring, scenario simulation, and proactive risk management.
Collect real-time data from IoT, ERP, and suppliers.
Build a dynamic, virtual representation of the network.
Run "what-if" scenarios for potential disruptions.
Use AI to analyze outputs and predict bottlenecks.
Generate alerts and recommendations for optimization.
Projected Growth of AI in Supply Chain
The market for AI in the supply chain is set for explosive growth, reflecting a massive industry shift towards data-driven, automated decision-making. This investment is crucial for building the resilient and efficient supply chains of the future.
2025 Outlook: The ESG Imperative
Looking ahead to 2025, Environmental, Social, and Governance (ESG) criteria are moving from a secondary concern to a core business driver. Consumers and regulators alike are demanding more sustainable and ethical supply chains.