We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
Home » Digital supply chains, circular economies, and a whole bunch of uncertainty
OUTBOUND

Digital supply chains, circular economies, and a whole bunch of uncertainty

What are the biggest challenges facing supply chain leaders in the decade ahead? Gartner analysts recently took up that question—and their answers may (or may not) surprise you.

November 17, 2020
Mitch Mac Donald
No Comments

Back in 2009, at the close of the first decade of the 21st century, Cliff Lynch, author of our popular “Fast Lane” column, declared that the three biggest logistics trends of the preceding decade had been globalization, technology, and Walmart.

Now, as we look back at the second decade of this century, it’s astonishing how little has changed. Globalization and technology continue to drive rapid change in logistics and supply chain. As for the third trend, some might argue that we should swap out Walmart for Amazon, but even that’s open to debate.

So when we look back on the 2020s a decade from now, what three trends will we point to as having most influenced supply chains? A solid case can be made that Cliff’s 2009 pronouncement, whether it includes Walmart or Amazon, will still ring true. And on a macro-level, it’s a winning case.

The smart folks at Gartner, though, have gotten a bit more granular on the topic. At last month’s virtual Gartner Supply Chain Symposium, analysts offered their take on supply chain trends, identifying three key issues facing industry professionals that they believe will collectively shape the future of supply chain.

The first is the rise in digital business. Gartner analysts say their research indicates that many supply chain leaders are struggling to develop a “holistic, digital supply chain roadmap,” while at the same time feeling pressure from upper management to make their business more digital.

“Given the critical role of supply chain in ensuring customer satisfaction and experience, much of the digitalization efforts will be on the shoulders of the CSCO (chief supply chain officer),” said Mike Burkett, vice president and analyst with the Gartner Supply Chain practice. “This is the greatest transformation of supply chain structures in a long time, and it will not be easy.”

It will not be easy because several barriers stand in the way. These include dealing with legacy technologies and processes; the challenge of sifting through mountains of data to find actionable points; and perhaps the biggest obstacle of all: culture. Navigating these challenges will require a unified approach on the part of upper management and supply chain leaders.

The second key trend identified by Gartner is uncertainty—both competitor uncertainty and trade uncertainty. As to the former, Gartner notes that while uncertainty has long been a constant in supply chain, its analysts have seen an uptick in uncertainty on where the next competitor will come from and what its impact will be. Nearly 50% of CSCOs believe that their business is at risk of being disrupted in the coming years, with the greatest risk coming from nontraditional businesses such as startups.

Then there’s trade uncertainty, sparked by such events as the U.S.-China trade war and Brexit. More recently, the Covid-19 pandemic has exacerbated this uncertainty by shutting down global supply chains and trade routes, as well as raising concerns about future pandemics.

“The ongoing uncertainty calls for a new approach to supply chain management,” Burkett notes. “CSCOs must build more flexible and resilient networks that can respond effectively to global shocks and disruptions—be [they] caused by nature or a competitor.”

The third and final trend identified by Gartner researchers is sustainability and the circular economy. Gartner (and others) define a circular economy as “an economic model that separates the ability to achieve economic growth from the consumption of natural resources.” It further notes that “supply chain plays a critical role in every part of the cycle: make, use, return, recycle, reuse.”

“A supply chain that enables the circular economy has to have strong reverse logistics capabilities,” Burkett points out. “The heavy equipment and machinery industries are already on a good path. However, this is a trend that no industry can miss out on—including consumer products.”

Supply Chain Services Other Services Supply Chain Strategy Global Logistics Green Logistics
KEYWORDS Gartner, Inc.
    • Related Articles

      DHL adds electric tractor-trailer vehicles to LA fleet

      Survey reveals confidence in on-time fulfillment this holiday season

      Digital business, trade uncertainty, sustainability will reshape supply chains

    Mitchmacdonald
    Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.

    Recent Articles by Mitch Mac Donald

    20 years later, the question remains the same: Are you up to SPEED?

    Hail and farewell: interview with Gail Rutkowski

    Thought I’d something more to say …

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Union Pacific agrees to provide more predictable schedules for union rail workers

    • Schneider National opens innovation center at Wisconsin headquarters

    • Parcel carriers, shippers steer into choppy waters as a perfect storm of challenges approaches

    • Trucking companies face “modestly unfavorable” outlook heading into 2024

    • E-commerce 3PL gains $100 million funding for its network of Mexican warehouses

    Now Playing on DCV-TV

    Mason case study thumbnail ste dcvtv

    See How Mason Drives Continued Growth with Multiple Pack & Ship Automation Systems Consolidated Under One Roof

    DCV-TV 4: Viewer Contributed
    We sat down with Craig Ritzinger, Facilities Manager, Mason Companies, to hear how the companies' continued growth and expansion has required innovations in warehouse fulfillment over time. Mason worked with StreamTech to implement a new fulfillment system for one of their brands, as well as bringing the other...

    FEATURED WHITE PAPERS

    • How to Use Economic Uncertainty to Gain Competitive Ground with Automation

    • Exploring Customized Forklift Solutions

    • Exploring the Future of Labor Management With Capacity Planning

    • Three layers of forklift safety: Promoting operating best practices

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing