Supply Chain Now Trends Shaping Supply Chain Strategies for 2025
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Jan 22, 2025 Mike Griswold, Vice President Analyst at Gartner, dives into pressing challenges and opportunities in supply chains. He reflects on lessons from the 2024 holiday shopping season and the rising issue of returns impacting logistics. The conversation highlights how AI is revolutionizing risk management and emphasizes the importance of respect for workforce engagement. With insightful predictions for 2025, they discuss the need for talent retention and diversification to build resilient supply chains in an ever-evolving landscape.
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Holiday Shopping and Returns
- Online retail sales grew by 3-4% in 2024, reaching $282 billion in the U.S. and $1.2 trillion globally.
- However, online returns also increased significantly, costing businesses $122 billion and creating substantial waste.
The Returns Challenge
- Retailers face a challenge with reverse logistics as their systems were designed for pushing products out, not handling returns.
- Efficiently processing returns, determining their resale value, and managing store-level logistics are crucial.
Omni-Channel Inventory
- Retailers should consider combining online and brick-and-mortar inventory pools.
- This approach could streamline returns processing and overall inventory management.