Top 3 Supply Chain Predictions for 2024 – and How to Stay Ahead

2023 in Review: A Productivity Revolution?

The start of a new year offers a unique vantage point for both retrospection and anticipation; a time to reflect upon the previous year with greater perspective as well as look ahead at the year to come.

At the start of the decade, the seismic impact of COVID-19 starkly exposed the vulnerabilities of modern supply chains, compelling organizations to swiftly innovate and fortify these weaknesses with improved technology and processes. By 2023, these (now well-refined) innovations have been widely implemented across many industries and has changed the way we view productivity, consumer experiences, and cloud management. These innovations mark a great shift in the way business is done forever; rapidly evolving technologies and an increasingly competitive market now mean that investments in technology are no longer a luxury, but a necessity.

As we step into the new year, challenges like widespread labor shortages, a teetering economy, and geopolitical uncertainties persist. Navigating these uncertainties mandates the maintenance of an agile supply chain. To achieve success in 2024, companies must leverage technology to make better business decisions, stay agile, and outpace the competition.

Prediction #1: The skilled labor shortage isn’t going anywhere, but Advanced Automation and AI can help fill the gaps.

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The shrinking pool of available workers, coupled with changing labor dynamics, is driving organizations to focus on automation and AI. These tools empower workers to increase efficiency by automating manual and repetitive tasks, allowing them to focus efforts toward strategic and value-add tasks. Recurring tasks such as customer service, report generation, workflows, and data entry are widely being streamlined using AI and automation.?

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Using these tools reduces errors, saves time, and relieves stress on teams. Generative AI (GenAI), a subset of AI, can process much larger sets of data than previous forms of machine learning and can analyze an almost infinitely complex set of variables. Notably, GenAI evolves and refines its understanding of a company's supply chain ecosystem over time, continuously learning and improving.

According to a study conducted by Gartner, in 2024 as much as 50% of supply chain organizations will invest in applications that support artificial intelligence and advanced analytics.[1] Strategically investing dedicated resources in implementing AI and advanced analytics systems is the key to thriving amidst the evolving challenges of the modern supply chain.

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How can AI and Automation relieve the labor crisis?

• Ensuring procurement and regulatory compliance
• Streamlining workflow efficiency
• Facilitating virtual logistics communications by using virtual assistants to handle routine inquiries swiftly.

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Prediction #2: In 2024, a connected, cloud-based ecosystem will become a necessity.?

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PaaS (platform-as a-service) and SaaS (software-as-a-service) are leading the tech market. Projections for 2024 anticipate that enterprise cloud spending will constitute a substantial 14% of global IT revenue.[1] Paas systems create intelligent, scalable, and customizable digital ecosystems that enhance agility and responsiveness.?Moving to a unified platform eliminates the need for disparate applications that often lead to siloed data and processes. Positioned as the nucleus of operations, PaaS serves as the single source of truth, facilitating centralized control over advancements in automation, reporting, analytics, and more.

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Accessible, Sophisticated Platforms

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Industry giants like Salesforce and HubSpot continue to dominate the PaaS landscape. Leveraging extensive resources, they provide users with a level of platform architecture and cybersecurity that would be impossible for individual organizations to achieve independently. For instance, Salesforce has invested $20 billion in AI research and development since 2017 and has made meaningful commitments and investments to uphold data privacy and security standards[2]. These safeguards hold particular significance especially when handling sensitive and confidential user information.

Here are some of the benefits of using a PaaS system:

• Reduced IT costs
• Cost efficiency
• Scalability
• Continuous updates

Legendary Supply Chain is built natively on the Salesforce platform. Leveraging the most advanced cloud architecture available, Legendary offers companies the tools to effectively manage their supply chain and optimize productivity.

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3) Prediction #3: Data and analytics will drive the sustainability revolution.

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There is a growing recognition that supply chains play a pivotal role in achieving sustainability goals. Fueled by mounting pressure from consumers and regulators, supply chain organizations are proactively formulating actionable sustainability objectives, aiming for net-zero waste and carbon neutrality.

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At the forefront of the sustainability revolution is the circular supply chain (also known as a closed supply chain). In a circular supply chain, used products or their components are systematically returned, processed, and given new life through repair, resale, refurbishment, or recycling. This strategic approach significantly reduces the volume of materials destined for landfills and is an actionable step towards a sustainable economy.

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A Comprehensive Transformation?

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Achieving a circular supply chain necessitates comprehensive transformations across the entire value chain. This demands the judicious implementation of practical technology, the establishment of clear Key Performance Indicators (KPIs), rigorous impact measurement, continuous identification of improvement areas, and advanced reporting. Meaningful impact can only be achieved through a comprehensive approach.

Sustainability & Profitability

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Taking measures to become a circular supply chain doesn’t only help the planet – it can help your bottom line, too. Here are some of the ways a circular supply chain can positively impact your business:

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• Emission Reduction and Renewable Energy: Actively reducing emissions and investing resources in renewable energy sources enhances resilience against the volatility of energy prices.
• Asset Lifecycle Management and Waste Reduction: Prolonging the life of resources and minimizing waste directly translates to cost savings. Often, refurbishing costs are substantially lower than outright replacements.
• Localized Sourcing: Global instability has led businesses to move toward localized sourcing, enhancing resilience in the face of disruptions.

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Legendary Supply Chain & Sustainability

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One powerful tool to achieve a circular supply chain is the Legendary Supply Chain Technical Operations application. This app empowers users to extend the lifecycle of parts and equipment using advanced functionality that connects natively to the greater database.?

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Legendary Technical Operations Features:

• Harvesting Functionality: Enables teams to extract usable parts from larger systems.
• Repair Management: Streamlines the repair process with detailed tracking of costs, history, compatible parts, and customizable fields.
• Bill of Materials: Offers comprehensive visibility into the composition of materials, aiding in efficient cost management.
• Asset Lifecycle Management: Full visibility over parts and equipment across their entire lifecycle.

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The Legendary Application helps minimize costs and maximize the lifecycle of equipment, aligning with the ethos of sustainable and circular supply chain practices.

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At Legendary Supply Chain, we believe that organizations equipped with the right mindset and technology can successfully navigate the evolving supply chain landscape. We are committed to helping our customers powerful technology to remain agile and adaptable in a competitive market. The path to success in 2024 beckons those who are ready to innovate, learn, and leverage the power of cutting-edge solutions to redefine the future of supply chain management.

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[1] https://www.gartner.com/en/newsroom/press-releases/2022-02-09-gartner-says-more-than-half-of-enterprise-it-spending

[2] https://www.thestreet.com/investing/stocks/salesforce-earnings-to-higher-ai-investment-drive-as-cloud-spending-cools#:~:text=The%20added%20revenue%20generation%20is,over%20the%20past%20seven%20years.