In the last couple of weeks, we’ve taken a look at some predictions for 2024 from the analysts at Gartner, first on logistics and then last week on supply chain technology.
But Gartner is hardly the only group offering prognostications on the coming year in supply chain, sometimes in the form of trends rather than predictions. Just google “supply chain predictions 2024” and check out the results.
But never fear, SCDigest did the hard work of wading through many of them so we could summarize some of the best of them here.
Gilmore Says.... |
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| Not sure I would call lifesaving and standard of living enhancing supply chains as a problem, but we’ll save that for another day. |
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Let’s start with some predicts from consulting firm KPMG, which believes that we’ll see a lot more use of generative AI in operations.
That’s not exactly new news, but KPMG well notes that “The list of opportunities for GenAI is extensive. It can help ensure procurement and regulatory compliance, streamline, and enhance the efficiency of manufacturing production workflows, or enable virtual logistics communication by using virtual assistants to handle routine inquiries and provide quick responses.”
Lots of folks are saying similar things, but most companies are still very early in this game, while the true impact on jobs remains to be seen.
The research team at warehouse developer ProLogis are back with a set of 2024 predictions, as usual.
I liked this one: the global freight recession will reverse, demonstrated by double-digit growth in port and truck traffic.
ProLogis believes that “import volume at Los Angeles and Long Beach ports will exceed pre-pandemic levels, noting that combined, the ports saw a 46% resurgence in imports since the trough in February 2023, as temporary factors such as ILWU contract negotiations and the post- pandemic bullwhip effect faded as anticipated.”
That, unfortunately for shippers/importers, will cause even more demand for Southern California logistics real estate, sending lease rates up from already sky high levels.
Writing on Forbes.com, someone named Richard Howells predicts that “2024 is the year we will begin to see a constant flow of regulations around ESG (Environmental, Social and Governance) coming into effect.”
He is talking, I presume, about such things as coming controversial SEC rules requiring public companies to disclose their CO2 emissions across their extended supply chains.
“Companies,” he says, “will be required to both understand and disclose their carbon footprint and emissions. And they will look to their supply chains for the data.”
That will change things up for sure.
Supply chains, Howells says, “are a huge part of the problem when it comes to emissions (estimated to be about 70% for most companies), circularity, and inequality, and are therefore a great area to focus on when looking for solutions.”
Not sure I would call lifesaving and standard of living enhancing supply chains as a problem, but we’ll save that for another day.
 He closes this prediction by stating that “decision-makers must understand how the supply chain performs – and which suppliers and logistics providers contribute to a greener business model.”
This next one, from analyst/consultant Bob Ferrari of The Ferrari Consulting and Research Group, is different for sure, which is good. Ferrari, who I know a bit, predicts that the risks of regional economic recession, added geo-political developments and consequential industry supply network disruption will test the leadership and influence capabilities of existing supply chain leaders in 2024.
Well that’s a mouthful. Let’s dig a little deeper.
Ferrari notes that “Leaders will again be presented with an environment of uncertainty and differing economic, financial and risk based outlooks, depending on geographic region, or specific industry product demand or supply network sector.”
He adds that “The increased cost of working capital and supplemental inventory levels to mitigate fulfillment risk is likely to revert back to just-in-time inventory management. However, the lessons garnered during the pandemic will likely drive inventory management toward less of a dependency on global-wide sourcing and more toward product postponement sourcing and customer fulfillment strategies.”
The post is total is interesting – but gets a little deep.
As we just about close it out here, I am going to offer one quick prediction of my own here: I believe we will see even more focus on and action against use of “forever chemicals” - perfluoroalkyl and polyfluoroalkyl substances (PFAS) – incredible manmade plastic materials developed to withstand heat, grease and stains. They solve a lot of problems – but these plastics do not break down in the environment and instead bio-accumulate, in our bodies, which many believe causes big health risks in the process.
Moving away from these plastics may be very hard – but desperately needed.
As noted above, there are a lot more predictions out there, but too many are from vendors of all types pushing agendas.
Hope you have enjoyed the 2024 predictions series.
What is your reaction to these 2024 predicts? What would you add? Let us know your thought at the Feedback section below
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