Companies across Africa and throughout the world continue to face significant challenges in their supply chains as natural disasters, geopolitical instability and a complex regulatory landscape disrupt supply chain processes.
In South Africa, ongoing challenges with port congestion and underperforming freight-rail systems have added further complexity and cost to supply chain operations. In response, companies are seeking tools and capabilities that reduce uncertainty in their supply chains and enable them to plan and respond more effectively in the face of disruption.
What does 2025 hold for under-fire supply chains? The introduction of powerful AI-powered technologies hold the promise of greater speed, efficiency and automation in supply chains, while greater use of connected technologies may empower business leaders with unprecedented data for improved decision-making.
This year, companies will need to adapt to and manage three key supply chain trends, namely:
Trend #1 – All-in on AI
2025 will see companies take significant strides toward building autonomous, AI-enabled supply chains. The goal: achieving greater efficiency and responsiveness in supply chain operations. As supply chains and associated processes become more complex, AI-enabled capabilities will become essential to help companies address issues as they emerge.
The use of digital twins – a virtual model of physical systems and processes – will become more prevalent, enabling companies to simulate scenarios, analyse performance in real time, and make data-driven decisions to optimise their supply chain operations.
Organisations that leverage AI to become more resilient will also gain an enhanced ability to sense, recognise, and react to disruptions. In fact, by ensuring AI is built-in, relevant and responsible, companies will be able to deliver measurable business outcomes even when disruptions feels like part of the daily routine.
Trend #2 – On the road to resilience
In the year ahead, expect to see greater adoption of anti-fragile supply chain strategies among companies as they navigate growing complexity and strive for greater adaptability.
In 2024, extreme weather events significantly disrupted supply chains across the globe, a trend that is set to continue in 2025 thanks to the effects of climate change.
By implementing data-driven technologies such as AI and machine learning, companies can unlock real-time insights needed to identify emerging supply risks and proactively respond to potential disruptions.
In order to maintain operations and remain competitive, companies will need to prioritise robust contingency plans and real-time data visibility to navigate disruption. Expect the focus to shift from reactive crisis management to proactive, agile supply chain strategies that enable companies to anticipate and mitigate disruptions before they occur.
Trend #3 – Striving for sustainability
This year, transparency across supply chains will become an essential element to mitigating risks and reaching sustainability goals. Business leaders will prioritise visibility and transparency to gain real-time insights, allowing them to monitor operations and guard against risky practices.
New regulations will also demand greater insight into end-to-end supply chain processes.
The European Union’s Corporate Sustainability Due Diligence Directive, which builds on the Corporate Sustainability Reporting Directive, is set to be implemented from 2027, and companies are already preparing this year.
While the regulations are needed to drive greater sustainability throughout supply chains, it will require companies to make changes to processes and operations to remain compliant, which may add further complexity to supply chain processes.
Technology solutions can play a vital role by helping companies track their compliance and back up their sustainability claims.
Improved visibility over supply chain processes will also help to manage risks and enhance collaboration among supply chain partners.
