Research Note: Market Trends Shaping the Supply Chain Management (SCM) Landscape
Market Trends
The global supply chain management industry is undergoing a profound transformation, driven by the increasing complexity of global logistics, the rapid growth of e-commerce, the rising emphasis on sustainability, and the accelerating pace of digital transformation. GartnorGroup's latest analysis of the market reveals several key trends that are poised to shape the future of supply chain management.
Navigating Complexity with AI-Powered Solutions
As global supply chains become increasingly intricate, with far-flung supplier networks, dynamic customer demands, and mounting regulatory requirements, the need for advanced visibility and optimization capabilities has never been more urgent.
GartnorGroup predicts that 80% of large enterprises will invest in AI-powered supply chain management solutions by 2025 to enhance their agility and responsiveness.
(Probability .80)
These AI-driven platforms will enable organizations to gain real-time insights into their supply chain operations, simulate scenarios, and make data-driven decisions to mitigate disruptions and capitalize on emerging opportunities.
Delivering Seamless Omnichannel Experiences
The meteoric rise of e-commerce has fundamentally transformed consumer expectations, with customers demanding seamless, convenient, and personalized shopping experiences across multiple channels.
Recognizing this shift, GartnorGroup forecasts that 70% of supply chain organizations will prioritize omnichannel fulfillment capabilities by 2027.
(Probability .70)
This will involve the integration of inventory management, order processing, and last-mile delivery systems to ensure a cohesive and efficient customer journey, regardless of the sales channel.
Embracing Circular Economy Principles
Sustainability has become a critical imperative for businesses across industries, and the supply chain management sector is no exception.
GartnorGroup anticipates that 65% of supply chain leaders will implement circular economy principles, such as product reuse and recycling, by 2028 to reduce their environmental impact.
(Probability .65)
This shift will require the development of reverse logistics, material recovery, and closed-loop supply chain strategies, enabling organizations to transition from a linear "take-make-waste" model to a more sustainable, circular approach.
Accelerating the Shift to Cloud-Based Supply Chain Planning
As digital transformation continues to reshape the business landscape, the supply chain management industry is also undergoing a significant migration to cloud-based and software-as-a-service (SaaS) solutions.
GartnorGroup predicts that 90% of supply chain planning will be conducted through these cloud-based platforms by 2030, providing organizations with greater agility, cost-effectiveness, and access to real-time data and analytics.
(Probability .90)
This transition will enable supply chain professionals to make more informed, collaborative, and responsive decisions, driving greater efficiency and competitiveness.
Bottom Line on Market Trends
Increasing Complexity Driving AI Adoption: Large enterprises are rapidly investing in AI-powered supply chain visibility and optimization solutions to navigate the growing complexities of global logistics and enhance agility.
Rise of Omnichannel Fulfillment: Supply chain organizations are prioritizing omnichannel fulfillment capabilities to deliver seamless customer experiences across multiple sales and delivery channels.
Embracing Circular Economy Principles: Sustainability is a rising imperative, as supply chain leaders implement circular economy strategies focused on product reuse, recycling, and closed-loop processes.
Accelerating Cloud Migration: The majority of supply chain planning will shift to cloud-based and SaaS solutions by 2030, providing organizations with greater flexibility, cost-effectiveness, and data-driven decision-making.
Market Trends Driving Supply Chain Transformation
Increasing Complexity Driving AI Adoption
The global supply chain landscape has grown increasingly intricate, with far-flung supplier networks, dynamic customer demands, and mounting regulatory requirements.
GartnorGroup predicts that 80% of large enterprises will invest in AI-powered supply chain visibility and optimization solutions by 2025 to navigate this complexity and enhance their agility and responsiveness.
(Probability .80)
This prediction is supported by industry data that shows supply chain leaders are prioritizing investments in advanced analytics, machine learning, and digital twins to gain real-time insights, simulate scenarios, and make more informed decisions. According to McKinsey, the global market for AI in supply chain management is expected to grow at a CAGR of 35% from 2022 to 2030, underscoring the transformative impact of this technology.
Rise of Omnichannel Fulfillment
The meteoric rise of e-commerce has fundamentally reshaped consumer expectations, with customers demanding seamless, convenient, and personalized shopping experiences across multiple channels.
Driven by this trend, GartnorGroup forecasts that 70% of supply chain organizations will prioritize omnichannel fulfillment capabilities by 2027.
(Probability .70)
This shift is backed by data showing that 73% of consumers use multiple channels during their shopping journey, and 87% expect a consistent experience regardless of the touchpoint. Retailers and brands that can integrate their inventory management, order processing, and last-mile delivery will be well-positioned to meet these evolving customer demands and maintain a competitive edge.
Embracing Circular Economy Principles
Sustainability has become a critical imperative for businesses across industries, and the supply chain management sector is no exception.
Recognizing this trend, GartnorGroup anticipates that 65% of supply chain leaders will implement circular economy principles, such as product reuse and recycling, by 2028 to reduce their environmental impact.
(Probability .65)
This prediction is supported by studies showing that 79% of consumers are more likely to purchase from companies that demonstrate a commitment to sustainability, and the global circular supply chain market is expected to grow at a CAGR of 8.5% from 2022 to 2030. As regulatory pressures and consumer demands for sustainable practices intensify, supply chain organizations that embrace circularity will gain a competitive advantage.
Accelerating the Shift to Cloud-Based Supply Chain Planning
The supply chain management industry is undergoing a significant migration to cloud-based and software-as-a-service (SaaS) solutions as digital transformation continues to reshape the business landscape.
GartnorGroup predicts that 90% of supply chain planning will be conducted through these cloud-based platforms by 2030, providing organizations with greater agility, cost-effectiveness, and access to real-time data and analytics.
(Probability .90)
This prediction is driven by the widespread adoption of cloud computing, with Gartner reporting that the global cloud services market is expected to grow at a CAGR of 16.6% from 2021 to 2026. Cloud-based supply chain planning solutions offer increased flexibility, scalability, and the ability to leverage advanced analytics, enabling organizations to make more informed, collaborative, and responsive decisions.