Unveiling the Challenges of Future Supply Chains: An Explorative Analysis

This chapter focuses on the identification of challenges that supply chains of the future will most likely face. The primary input in this process are the potential optimistic/pessimistic/intermediate future scenarios based on trends within political, economic, social, technological, legal, and environmental dimensions. Based on such input, we present a list of major challenges/opportunities in relation to the design and operations of Supply Chains (SCs) in the near future. The preliminary list is calibrated and validated based on the input from industry stakeholders (to account for the perspectives of different supply chain actors such as buyers, suppliers, policy makers, and supply chain facilitators) in order to make sure that these challenges are indeed of practical relevance and grounded in reality. The aforementioned challenges are aggregated into several clusters aiming at providing decision makers with a tool that would enable them to quickly and easily spot the relevant challenges and take proper actions to mitigate any potential risk.

Technology Scouting to Accelerate Innovation in Supply Chain

Digital technologies have gained ground among companies, researchers and policy makers in recent years due to their growing relevance to current and future supply chains. Technologies such as robotics, artificial intelligence, autonomous transport systems, data science, and additive manufacturing are gradually becoming part of people’s and companies’ daily lives and are changing the manufacturing, process industry and logistics sectors. Although recent attempts have been made to understand the implications of these technologies on supply chain management, the relevance of the different technologies in future scenarios is still unknown. Using a technology scouting approach, the most important enabling technologies for supply chains until 2030 are identified and selected and their implications on future supply chains are evaluated using an assessment methodology with different evaluation criteria.

Paths to Innovation in Supply Chains: The Landscape of Future Research

This chapter presents a Strategic Research and Innovation Agenda for supply chain and it is the result of an intensive work jointly performed involving a wide network of stakeholders from discrete manufacturing, process industry and logistics sector to put forward a vision to strengthen European Supply Chains for the next decade. The work is based on matching visions from literature and from experts with several iterations between desk research and workshops, focus groups and interviews. The result is a detailed analysis of the supply chain strategies identified as most relevant for the next years and definition of the related research and innovation topics as future developments and steps for the full implementation of the strategies, thus proposing innovative and cutting-edge actions to be implemented based on technological development and organisational change.

Future Scenario Settings for Supply Chains

Trends and future developments make it necessary to discuss the future, but it is their bundling that forms a future scenario. This chapter describes six identified and verified macro-scenarios for future industry specific settings, which are shaped by various socio-economic, political, technological and environmental future developments. The description of each macro-scenario allows conclusions to be drawn on supply chain developments such as circular aspects, trade impacts or necessary supply chain structures. Each future scenario is set in a conceptual framework that provides the context and meaning of possible futures and enables companies to prepare and adjust their strategies accordingly.

Scenario-Driven Supply Chain Charaterization Using a Multi-Dimensional Approach

Extreme disruptive events, such as the volcano eruption in Iceland, the Japanese tsunami, and the COVID-19 pandemic, as well as constant changes in customers’ needs and expectations, have forced supply chains to continuously adapt to new environments. Consequently, it is paramount to understand the supply chain characteristics for possible future scenarios, in order to know how to respond to threats and take advantage of the opportunities that the next years will bring. This chapter focuses on describing the characteristics of the supply chain in each of the six macro-scenarios presented in Sardesai et al. (2020b), as final stage of the scenario building methodology. Supply chains for each scenario are characterized in eight dimensions: Products and Services, Supply Chain Paradigm, Sourcing and Distribution, Technology Level, Supply Chain Configuration, Manufacturing Systems, Sales Channel, and Sustainability.

A Methodology for Future Scenario Planning

The future is influenced by various possible developments and is hence difficult to predict. Still, each company or institution bases its vision and strategic progress on certain assumptions for the future. In order to prepare for various developments of the future, it is reasonable to consider different possible scenarios while building a future vision. Thus, this chapter focuses on the methodological approach for the generation of future scenarios showing what the surroundings for supply chains might be like in a time horizon until 2030. This integrates various political, economic, social, technological, legal and environmental influences and changes. The methodological framework required for generating scenarios is set by a combination of quantitative and qualitative scenario planning methodologies. Close coordination and collaboration between production and logistics guides the underlying scenario design to focus the context on supply chains. While considering trends described in Kalaitzi et al. 2020, this approach results in a set of macro scenarios, each describing a possible future development until 2030. The macro scenarios range from scenarios with progressive developments to regressing or stagnating evolutions.

Mapping Enabling Technologies for Supply Chains with Future Scenarios

Driven by the current digital transformation, European companies rely on accurate forecasting of future trends and prediction of most useful technologies in order to maintain their competitive edge. For this purpose, the mapping of enabling technologies to future scenarios becomes a valuable tool for practitioners and researchers alike, especially when considering the disruptive events that surround SCs design, implementation and management. This research sets forth to fill this gap by presenting a technology mapping of enabling technologies based on technology portfolio approach, expert elicitation and literature. The final outcome is the mapping of the enabling technologies to the characteristics of the future European SC scenarios.

Policy Recommendations for Supporting Supply Chains with Horizontal Actions

This chapter aims to identify the supply chain (SC) issues that can be considered “horizontal”, as they are cross–sectorial and faced by most companies operating both in production and distribution sectors, and to propose a set of policy recommendations that can support public and private organisations to promote and foster innovation and competitiveness of future European SCs. The definition of the Key Horizontal Issues (KHI) is the basis for developing 12 policy recommendations regarding infrastructure requirements, technological and organisational improvements and regulatory developments needed to set the stage for the European SCs for the future. Specifically, the policy recommendations entail assuring appropriate standards and legislation for European SCs; educating and training professionals for the future SCs; drafting of international agreements aiming at future European SCs; supporting and fostering incentives and funding schemes; promoting reference bodies for European SCs; and establishing infrastructure for fostering of future European SCs.

Megatrends and Trends Shaping Supply Chain Innovation

Companies operate in a macro-environment that is changing considerably due to large, transformative global forces namely megatrends and trends. The wave of these megatrends and trends generates new prospects as well as challenges for the future of supply chains. This chapter provides a review of 23 major megatrends and 72 trends identified in multiple dimensions along Political, Economic, Social, Technological, Legal, and Environmental (PESTLE) dimensions. The results are based on a systematic literature review and an experts’ workshop, and can be used to generate future supply chain scenarios.

A Journey into the European Supply Chains: Key Industries and Best Practices

Macro-trends and sectoral-specific evolutions are changing the way companies produce, distribute and build relationships in their supply network and with customers. Aiming to investigate the effective implementation of new supply chain concepts and innovation needs identified in the previous sections, this chapter provides a study of multiple cases of excellence among European supply chains. It depicts an overview of major trends and structural features of 8 key industries for European economy, i.e. Automotive, Aerospace, Fashion, Chemical, IT, Distribution/logistics, Furniture, Food and Beverage. For each industry, a structured investigation into one or more companies was performed with a total of 18 companies involved. The results identify possible matchings in relation to supply chain strategies, and good and best practices adopted accordingly.