o9, the leading enterprise AI software platform provider that transforms planning and decision-making, shares key insights from supply chain experts and leaders to support supply chain management (SCM) across retail, EV, and pharma in 2025. We highlight interesting trends that will redefine
Supply chain management trends for 2025:
- Resilience and responsiveness in the business environment: The complexity of today’s global business environment, influenced by geopolitical tensions, supply chain disruptions, and economic uncertainty, will lead organizations to prioritize resilience and adaptability. Cutting-edge technologies that enable predictive analysis and scenario planning play a key role in mitigating risks such as port strikes, natural disasters, and conflicts. This will also encourage companies to adopt strategies that emphasize source diversification and leverage digital tools to anticipate and respond to challenges with agility.
- Efficiency and cost management: Cost optimization will continue to be a key focus area for organizations under pressure to maintain profitability. Enterprises will turn to advanced tools such as digital twins and AI-driven predictive models to simulate and evaluate different operational scenarios. These innovations enable organizations to identify inefficiencies, streamline supply chains, and reduce costs while maintaining operational excellence.
- Industry-wide regulatory compliance: Regulatory changes, including potential changes to EV-friendly policies and subsidies, will have a significant impact on consumer behavior and industry strategy. Automotive industry leaders must adopt a platform-based approach to streamline data and processes to better align with evolving regulatory and market conditions. Strategic investments in AI and technology integration can help businesses stay adaptable.
- Generative AI: From experimentation to execution: 2024 was the early stage of experimentation with AI and generative AI, while 2025 will begin the transition to large-scale implementation. Companies will move beyond prototyping to implementing GenAI strategies that digitize and distribute critical knowledge embedded in planning departments. These technologies extend human capabilities and help employees improve their productivity, efficiency, and ability to innovate.
GenAI is particularly powerful for root cause analysis of supply chain issues. By simulating and analyzing scenarios at unparalleled speed and scale, GenAI provides accurate insight into disruptions and enables faster problem resolution. Its ability to integrate complex data creates significant value in navigating today’s complex supply chain networks, making it an essential tool for corporate planning.
- Evolving the workforce with AI: As talent shortages continue to challenge organizations in North America and Europe, AI can serve as an important means to fill the gap. AI can help offset workforce constraints by digitizing the expertise of retiring professionals and providing real-time assistance. Companies will also invest in reskilling programs to enable employees to work effectively with AI systems, fostering a culture of continuous learning and adaptability.
- collaborative supply chain planning: There will be a greater emphasis on collaboration in the supply chain, moving from adversarial relationships to integrated value chains. AI-powered tools can support this change by providing predictive insights that improve alignment between suppliers and customers. Even as consumers continue to prioritize speed and cost, businesses will focus on building more resilient and transparent supply chain ecosystems to deal with future uncertainties.
- Touchless planning adaptation: By 2025, more organizations will adopt AI-powered touchless planning to automate routine supply chain decisions. Full-scale adoption may vary by industry, but companies should focus on leveraging high-fidelity data, advanced AI engines, and feedback mechanisms to build trust and refine processes. There is. Planners move from manual intervention to a strategic role, focusing on scenario planning, risk mitigation, and data curation to enable more efficient and accurate decision-making.
- Leadership and strategic focus: Leaders in 2025 will embrace scenario-driven strategies backed by advanced AI capabilities to navigate unpredictable global conditions. They will focus on leveraging AI not only as a problem-solving tool but also as a strategic enabler of innovation. Building and maintaining a skilled talent pool while incorporating AI as a core element of business strategy defines organizations that succeed in the evolving enterprise space.
SCM trends and challenges in the EV industry in 2025:
- Challenges of transitioning to electric vehicles: Many manufacturers are delaying the transition to all-electric production, potentially slowing EV efforts. This has changed consumer demand across diesel, gasoline, hybrid and EV models. This fluctuation requires accurate forecasting and agile supply chain responses.
- New role demands: The automotive industry is transitioning from engine-based mechanical engineering to data- and IT-centric capabilities. This evolution has increased the competition for talent in programming, battery technology, and connected car systems skills essential to managing increasingly complex supply chains.
SCM trends and challenges in the retail industry in 2025:
- Inflation and margin pressure: Inflation continues to put significant pressure on consumer spending, reshaping retailers’ strategies. This has led to store closures and leadership changes as retailers pivot to short-term investments that deliver immediate value. Margins are particularly low in low-margin categories such as groceries, pushing some companies into bankruptcy. Retailers are increasingly turning to private labels and private labels to offset pressure and achieve higher profitability.
- sustainability—Deferred priority: While sustainability remains a long-term goal for the industry, it has taken a backseat in current strategic discussions. Retailers are still weighing the costs and benefits of sustainability initiatives, balancing environmental goals with immediate financial pressures.
- Challenges of data-driven decision making: Retailers are increasingly recognizing the need to better utilize data, especially in assortment planning and financial management. Many people struggle to turn vast amounts of data into actionable insights, leading to inefficient decision-making. Improving data literacy and investing in real-time analytics tools have become key priorities.
- Investing in adaptability and technology: To succeed in the volatile retail industry, leaders must prioritize adaptability, agility, and responsiveness. Real-time data visibility and flexible technology platforms are essential to navigating challenges such as margin pressures, supply chain disruptions, and changing consumer behavior. Investments in technology also support long-term goals such as sustainability and omnichannel excellence.
SCM trends and challenges in the pharmaceutical industry in 2025:
- Supply chain risk management: The pharmaceutical supply chain relies heavily on third-party partners for logistics, contracting, and manufacturing. Enhancing visibility across these multi-tiered networks is critical to managing risk. Real-time control towers and surveillance solutions are becoming standard tools to address this complexity.
- Distribution optimization: Efficiency is paramount for distributors with low margins but high profits. Key operational priorities include inventory management, cost control, and cold chain logistics for temperature-sensitive products such as biologics.
- Unifying trends – Strategic and resilient supply chains in life sciences: The life sciences industry is evolving toward highly complex supply chains driven by advances in medical technology, long-term planning, and proactive risk mitigation. Innovations such as robotics-based surgery require deeper multi-tier supplier networks, requiring comprehensive visibility and risk management. Companies are also adopting medium- to long-term planning strategies, particularly for biologics, to align with future production capacity and regulatory requirements. Recent shortages of critical items such as intravenous fluids have highlighted the importance of contingency planning and collaboration with partners to reduce disruption and ensure supply chain continuity.
About o9: o9 is the leading AI-powered platform for integrated business planning and decision-making for global enterprises. Whether you’re driving demand, aligning supply and demand, or optimizing your commercial efforts, o9’s AI-powered digital solutions make every planning process faster and smarter. o9 brings together innovations such as graph-based enterprise modeling, big data analytics, advanced algorithms for scenario planning, collaborative portals, easy-to-use interfaces, and cloud-based delivery in one platform. Click here for more information. www.o9solutions.com.
