Reshaping Supply Chain Strategy Will Help Outpace Disruption

From network diversification to the adoption of GenAI, the latest Gartner research offers industry predictions to help companies develop organizational skills and secure new energy sources.

Somchaisom Adobe Stock 414129596
somchaisom AdobeStock_414129596

Trade restrictions and environmental regulations are reshaping the world, and climate issues are reshaping operations through power cuts and extreme heat.

From network diversification to the adoption of GenAI, the latest Gartner research offers industry predictions to help companies develop organizational skills and secure new energy sources. Along with the physical, transitional and regulatory risks associated with extreme heat, the energy transition and circular legislation, these predictions emphasize the need to reshape strategy now to create a competitive advantage in the future. 

 

Key takeaways:

  • Extreme heat poses increasing risks to companies in heat-stressed regions, with peak daytime temperatures impacting workforce health and productivity, and straining energy supplies.
  • Energy supplies can no longer be taken for granted, even in the developed world, as the energy transition and global disruption alter competitive dynamics and lead to electricity shortages.
  • Shortages in key materials and impending regulations will force companies to move from investment to operationalization of circular supply chains with a product rejuvenation strategy.
  • Strategy reviews in light of global disruption have led to an acceleration away from single-region, mono-sourced networks, toward more regional diversification and network transformation.
  • Transformation of generative AI (GenAI) capabilities in the last year has led to a rush to enterprise applications, with the most common supply chain use case being to improve customer experience maturity.
  • By 2029, the nighttime economy in heat-stressed regions will grow 20% as companies adapt business operations to avoid extreme daytime temperatures.
  • By 2026, 50% of G20 members will face a rising occurrence of regular electricity rationing, turning energy-responsive production into a competitive advantage.
  • By 2027, 40% of global enterprises will rejuvenate selected products by operationalizing circular practices to mitigate material supply risk and anticipate regulatory mandates.
  • By 2028, 70% of companies will adopt regionally diversified supply chain models to improve network resiliency in the face of ongoing global disruptions.
  • By 2026, those organizations employing GenAI in their CX will achieve 10% higher CX maturity than those that do not.
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