How to Prepare for Europe's Supply Chain Troubles in 2025 Future-proofing supply chain management is a key first step in fortifying resilience and operational agility.
By Sunil Kardam Edited by Jason Fell
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Supply chain disruptions are a worst-case scenario that can't be ignored by entrepreneurs. They cause extensive damage, wreaking havoc on operations and logistics, with consequences ranging from unhappy customers to financial calamities.
It's not just about delivering a package from A to B: supply chains are the beating heart that keeps a business's cogs turning. And if entrepreneurs are failing to prioritize their proactiveness for more agile supply chains, they're setting themselves up for failure.
More than 76% of European businesses suffered from supply chain disruptions in the past 12 months due to geopolitical issues like the Ukraine-Russia war and climate change, a recent Maersk report says. Supply chain resilience is now the name of the game for European businesses to stay afloat amidst ongoing turbulence.
Moreover, these disruptions are wreaking havoc on economic stability, meaning that one in five European companies are under major pressure to transform their operations.
With supply chain disruptions predicted to be an ongoing problem now and into the future, it's crucial that European entrepreneurs understand how they can prepare for the road ahead, and why that means prioritizing agility and a proactive stance.
Visibility is non-negotiable
Having a finger on the pulse across your supply chain should be a strategic priority. Experts anticipate disruptions to only continue, and real-time actionable analytics are a game-changer to promptly addressing these as they arise.
Fortunately, solutions have emerged that facilitate this real-time visibility, and entrepreneurs can pick from a wide range of technologies based on their budgets and operational needs.
The Blockchain is one of the most in-demand solutions because it strengthens transparency around tracking the movements of goods and improves traceability. This is especially crucial for entrepreneurs who want to make sure goods and products are moving securely along the supply chain so they can meet demand and manage customer expectations. Blockchain solutions have evolved to be easily integrated into existing business models alongside other technologies.
Alongside blockchain technology, entrepreneurs can use sensors like GPS monitors and RFID tags to accurately monitor inventory, track shipments, and stay in the loop on weather conditions and other potential disruptors to deliveries.
Automate where you can
Besides better visibility, blockchain technology also has its place in taking the weight off administrative burdens, such as updating ledgers and accounts. That will save a lot of time for entrepreneurs who are looking to maximize efficiency. Additionally, blockchain can issue alerts when something goes wrong.
Technology also has a vital role in easing up the legwork around data analytics. One of the biggest operational challenges entrepreneurs face is extracting actionable information from a huge mountain of supply chain data. Generative AI (GenAI) is helping them overcome this by automatically extracting valuable insights from structured data, like spreadsheets, and unstructured sources, like emails and videos. It's removing the hassle of manually sorting through massive swathes of data, providing companies with actionable summaries so business owners and their teams can focus on strategic decision-making.
Entrepreneurs can also reap valuable benefits from AI on the road. Sudden weather or traffic incidents can hugely disrupt supply chain operations and undermine service quality. That's where the Internet of Things (IoT) also comes in, where data from sensors can be used alongside AI to transmit and process real-time data and make decisions accordingly to maximize efficiency.
Be prepared through predictive analytics
It's not all about focusing on the here and now but also keeping ahead to respond to disruptions as they come. Predictive analytics have a powerful role to play in proactively mitigating risk and boosting operational efficiency.
Specifically, solutions like machine learning (ML) and natural language processing (NLP) can be used to analyze data, identify patterns, and make predictions accordingly. ML tools are particularly useful for gauging patterns and making predictions from large data sets while adapting to changing conditions. Use-case scenarios include forecasting demand and assessing risk. These tools become more adept in their use cases as they're exposed to more data over time.
NLP helps businesses interpret and analyze human language data to provide qualitative insights and enrich predictive models. Coupled with AI, which automates complex processes like model selection through methods such as deep learning, NLP can be extremely useful to take that unstructured data and turn it into actionable insights that can fuel preemptive measures for better supply chain agility.
These are just a few of the solutions rapidly becoming more widely available to enterprises. There will always be new, unexpected disruptions, but future-proofing supply chain management with the help of technology is a key first step in fortifying resilience and operational agility.
