Darwin’s theory suggests adaptation takes millions of years, but business now adapts in minutes. But in 2025, how will supply chains evolve? Pharma companies are already considering impacts and strategies.
Global economic relations
U.S.-China relations will remain key to global supply chains in 2025. Post-election, trade tensions may escalate, leading to tariffs, restrictions, and possible decoupling. However, this could create opportunities for alternative hubs like India, Vietnam, Mexico, and Poland.
Trade policies
Global supply chains are also likely to be impacted by “protectionist” measures and new trade agreements such as the EU’s Carbon Border Adjustment Mechanism and national efforts to curb inflation. These efforts tend to form “gated globalization,” which will limit the flexibility of supply chains within smaller geographic areas of “friendly” trade partners.
Unfortunately, ongoing global tensions and conflicts also continue to disrupt key regions, making it necessary to diversify trade routes and build more resilient supply chain networks.
Material impacts
Many supply chains are dependent on resources that continue to be critically constrained — for example, increasing demand for lithium and other materials crucial for electric vehicle batteries. Industries such as semiconductors also rely on rare earth elements as well as increasing cost and effort to build critical manufacturing capacity.
On a positive note, these same challenges are also driving new innovation in material science and recycling technologies, as well as investments in new extraction and processing facilities.
Sustainability pressures
Environmental concerns will keep shaping supply chain strategies due to natural and human impacts. After major weather disruptions in 2024, companies expect similar challenges this year. Growing consumer and investor pressure for sustainable, low-carbon supply chains may drive new regulations and reporting requirements.
However, these challenges also present opportunities, such as increased investment in green technologies and localized production.
Leveraging technology
Just as the physical and natural world are changing around us, so is technology.
While supply chain planning software is certainly not new, it has evolved quite significantly over the last decade, with the latest evolutions gaining critical capabilities that companies are going to leverage in the near future:
• Scientific accuracy: Precision in supply chain planning reduces errors, improves forecasting, optimizes inventory, and minimizes disruptions, boosting efficiency and competitiveness.
• Enterprise-wide collaboration: Seamless integration across the product lifecycle enhances efficiency, reduces disruptions, and shortens time-to-market. Cross-functional communication helps address issues, optimize resources, and maintain a competitive edge.
• Artificial intelligence: AI and ML are crucial for supply chain planning, processing vast data for real-time insights. They enhance predictive analytics, improving demand forecasting and inventory management for greater resilience and efficiency.
AI is transforming industries and daily life, optimizing supply chains, inventory, and logistics. Advances in computing and real-time data enable companies to react to disruptions and model business scenarios with virtual twins. As personal automation grows, businesses face the same shift — but do they trust AI to handle complex tasks once reliant on human oversight?
Looking ahead
Geopolitical shifts, climate challenges, and resource constraints will pressure supply chains but also drive innovation and resilience. Rapid advancements bring trust and security concerns, especially with AI-driven decisions. Those embracing technology and adapting to change will thrive, making strong tech partnerships essential for digital transformation.
