Monthly Roundup - 2024 in Review, Supply Chain Trends in 2025, P&G’s Sustainability Moves, and DM’s Online Pharmacy Launch

In 2024, McKinsey Global Institute identified key trends and competitive arenas shaping the global economy, with a focus on AI and its growing impact on revenue generation. Generative AI is now driving significant revenue increases, particularly in areas like supply chain and inventory management, while also generating cost reductions. GenAI-powered automation is projected to unlock $3.5 trillion to $4 trillion, showcasing its transformative potential in industries such as finance and operations.

MGI also highlighted 18 industries poised for high growth, with potential revenues of $29 trillion to $48 trillion by 2040. These industries include AI software and services, cybersecurity, air mobility, obesity drugs, and biotechnology. These industries are characterized by cutting-edge technologies, large investments, and rapidly growing markets, which intensify competition. The race to deploy AI, including in sectors like automation and AI-powered tools, is crucial for productivity growth. The potential to boost productivity by addressing labor market challenges and improving efficiencies in various industries is substantial.

As we look toward 2025, the role of supply chains continues to evolve, transitioning from a cost center to a crucial element in global commerce, a change accelerated by the COVID pandemic. Several key trends, as identified by Kinaxis and Forbes, are set to reshape the future of supply chains:

1. AI and Data-Driven Decision Making:AI, especially generative AI, enhances supply chain efficiency and resilience. Businesses must invest in analytics and foster collaboration with AI experts to drive innovation.
2. Risk Management and Resilience: Companies need to proactively design resilient supply chains, incorporating network design, risk assessment, and collaboration to handle disruptions like geopolitical conflicts and environmental risks.
3. Freight Industry Evolution: The freight sector should move beyond legacy systems by adopting advanced technologies like cloud-based solutions and AI to optimize cost and service levels.
4. Mega-Events: Large-scale events can disrupt supply chains. Businesses should leverage AI tools and work closely with suppliers to forecast demand and ensure flexibility.
5. Medication Shortages: AI can help pharmaceutical companies address ongoing drug shortages by identifying risks and optimizing production.
6. Influencer-Driven Demand: Social media influencers can create sudden demand surges. Companies should be prepared to manage these trends to avoid bottlenecks.
7. Global Power Shifts: Political and economic changes impact supply chains, requiring businesses to stay informed and adjust strategies to manage risks and seize opportunities.

Procter & Gamble has agreed to disclose more details about its wood-pulp audits after shareholder pressure to source forest products sustainably. Investors, including Green Century, are pushing for greater transparency, especially regarding pulp sourced from Canada's ecologically sensitive forests. P&G has committed to providing more information by mid-2025 and investing $20 million in wood-pulp alternatives by 2030. While P&G emphasizes protecting primary forests and using third-party certifiers, critics argue its current practices still allow harmful logging. The company also agreed to disclose more about its Canadian lobbying efforts. Rival Kimberly-Clark has already committed to avoiding pulp from untouched forests.

The Kion Group, Accenture, and Nvidia are collaborating to optimize supply chains using AI and simulation technologies. At CES in Las Vegas, they showcased a digital twin, "Mega," within Nvidia's Omniverse platform, designed to optimize warehouse configurations. Using AI models and physical AI, the digital twin allows companies to test and refine warehouse setups without disrupting operations, enhancing automation, efficiency, and adaptability. It also helps robots and systems adjust to changing conditions like demand fluctuations. The collaboration aims to create intelligent, autonomous warehouses that can continuously improve, boost productivity, and enhance supply chain resilience. Future plans include integrating generative AI models to detect and prevent issues in real time.

The drugstore chain dm is preparing to launch an online pharmacy, allowing customers to purchase over-the-counter medications like painkillers online. The company has set up the necessary conditions and is in discussions with manufacturers and suppliers. Prescription drugs will not be sold. The launch date is uncertain, as dm is preparing logistically and awaiting potential new regulations after the Bundestag election. The company is focused on the increasing digitalization in healthcare, including e-prescriptions, digital patient records, and telemedicine. CEO Christoph Werner has highlighted health as a "megatrend" and believes market changes are inevitable due to an aging population and the closure of pharmacies.

Read more on recent highlights

• True origin of fish remains unclear: Study warns opaque seafood supply chains are posing financial risks
• Deutsche Post: Strikes in parts of Lower Saxony and Saxony-Anhalt has begun
• Korea faces new test of credibility in global supply chain
• Toyota global production down for 10th month despite rising sales
• Review: These regulations shaped world trade in 2024
• German economy: how parties aim to revive growth as election looms
• Returns Tuesday: The ultimate reverse logistics challenge
• Labor strife, tariffs to shadow ocean shipping in 2025
• Inside Amazon's billionth sustainable US package delivery
• A guide to securing software supply chains for early stage startups
• Toward security in sustainable battery raw material supply
• How Tetra Pak is boosting the Netherlands' recycling efforts
• Europe's embattled auto sector plans plant closures and layoffs

Dive deep into research

"An agility and performance assessment framework for supply chains using confirmatory factor analysis and structural equation modelling" by NSB, A., Raj, R., Kumar, V., Gangaraju, P.K., and De, T. (2025)

"A data-driven machine learning model for forecasting delivery positions in logistics for workforce planning" by Eicheseer, P., Hans, L. and Winkler, H. (2025)

"A Bayesian best-worst approach with blockchain integration for optimizing supply chain efficiency through supplier selection" by Modares, A., Emroozi, V.B., Roozkhosh, P. and Modares, A. (2025)

"A systematic review of supply chain analytics for targeted ads in E-commerce" by Pundir, S., Garg, H., Singh, D. and Rana, P. S. (2024)

"Evaluating early predictive performance of machine learning approaches for engineering change schedule – A case study using predictive process monitoring techniques" by Radišić-Aberger, O., Burggräf, P., Steinberg, F., Becher, A. and Weißer, T. (2024)

Events

The Conference for Software Architecture

When: 3. - 7. February 2025

Where: Munich, Germany

What: Software architects, developers and IT project managers have been relying on OOP - the best-known and largest conference on all important software architecture topics in the German-speaking world - for their professional development for over 30 years. Why? This conference is the tried-and-tested meeting place for the software scene at the beginning of the year because it always succeeds in providing a state-of-the-art picture of current software development through cutting-edge and practical presentations.

SOUTHERN Manufacturing & Electronics

When: 4. - 6. February 2025

Where: Farnborough, UK

What: Southern Manufacturing & Electronics is a dynamic hub where industry leaders, innovators, and experts converge to share ideas, discover new technologies, and forge long-lasting partnerships. By visiting the show, you’ll gain invaluable insights through technical seminars, connect with over 500 leading suppliers, and experience hands-on demos of solutions that can transform your business operations.

FRUIT LOGISTICA

When: 5. - 7. February 2025

Where: Berlin, Germany

What: Fruit Logistica will bring together industry professionals, innovators, and stakeholders from the global fruit and logistics sectors. This leading trade fair focuses on fresh produce logistics, covering all aspects of the supply chain, from production and storage to transportation and retail. Attendees can expect to explore the latest technologies, trends, and sustainable solutions that drive efficiency in the handling and distribution of fruit.

Packaging Innovations and EMPACK

When: 12. - 13. February 2025

Where: Birmingham, UK

What: The event is split into three focused shows – Packaging Innovations, Empack, and Contract Pack & Fulfilment – each dedicated to a key stage of the packaging journey. Together, they create a unique platform for brands to source new ideas, meet industry leaders, and learn about the trends shaping the future of packaging.

EuroCIS

When: 18. - 20. February 2025

Where: Dusseldorf, Germany

What: EuroCIS is Europe's leading trade fair for retail technology. This event will showcase the latest innovations in digitalization, automation, and customer experience across the retail sector. Exhibitors from around the world will present cutting-edge solutions in areas such as point-of-sale systems, payment technologies, e-commerce, and supply chain management. Attendees can expect to discover how technology is transforming the retail landscape and enabling businesses to enhance efficiency and customer satisfaction.

E-commerce Berlin Expo

When: 19. - 20. February 2025

Where: Berlin, Germany

What: The E-commerce Berlin Expo is one of the largest events for e-commerce professionals in Europe. This two-day expo brings together top industry experts, innovators, and decision-makers to explore the latest trends and technologies shaping the e-commerce world. Attendees will have the opportunity to discover cutting-edge solutions in digital marketing, logistics, payment systems, and customer experience.