Material growth in the value of global goods traded over the last five years represents the evolution of globalization, increasing incomes in many locations, and the need to connect people and devices. ABI Research estimates that baseline forecasts for 2022 will exceed anything seen in the prior six or more years.
The researcher says e-commerce revenue will grow from US$560 billion in 2020 to US$8 trillion in 2026. The growth underscores the need for supply chains to become more flexible and agile to address future disruptions and create more resilient value chains.
“The pandemic exposed the weaknesses of fragmented, regionally dependent, and inflexible supply chains. Even as current challenges subside, new, and potentially unforeseen challenges will become the norm, and companies will need to ensure supply under a more volatile business landscape. Companies need to be willing to invest in next-generation technology, infrastructure, and human resources to build resilience and efficiency into their constantly evolving operations,” explains Susan Beardslee, supply chain management & logistics principal analyst at ABI Research.
This includes digital twins for retail to optimize forecasting and adjust pricing, asset tracking platform that informs the supply chain in real-time on product location, users, replenishment and more.
Fulfilment operations can save 20% of their time via hands-free solutions. Greater sustainability is needed including circular economies. Finally, critical security to protect the connected supply chain
“There is no singular “silver bullet” to address the multiple supply chain challenges, and not all challenges can be addressed purely by technology. Technologies can, however, improve visibility, flexibility, efficiency, and profitability, repairing numerous challenges, many of which existed pre-pandemic,” Beardslee concludes.