Retailers face a complex, fast-shifting landscape, and KPMG’s recent report pinpoints six key supply chain trends that will define 2025. These aren’t abstract ideas—they're frontline imperatives for omnichannel leaders who must juggle cost, risk, compliance, and customer expectations.
1. Granular Cost-to-Serve Analysis
Traditional cost-cutting tactics are no longer enough. Retailers must now adopt data-rich, AI-powered tools to assess cost-to-serve at every node—product, customer, and channel. This enables strategic pricing and more agile supply decisions.
2. Heightened Risk Management
From geopolitical shifts to cybersecurity threats, supply chains are facing an expanded risk profile. Predictive technologies and collaborative data-sharing ecosystems are key, as is visibility through Tier 4 suppliers.
3. ESG & Scope 3 Emissions Pressures
Environmental compliance is evolving fast. Retailers will need full-spectrum visibility across their supplier networks to meet new regulations like the EU’s CBAM and CSDDD. Circular economy models will move from niche to necessary.
4. Generative AI Integration
GenAI’s role in procurement, sourcing, and supplier management is accelerating. In 2025, expect retailers to go beyond experimentation and into full-scale operationalization to boost speed and accuracy.
5. Intake & Orchestration (I&O) Tools
Legacy systems are being leapfrogged by lighter, flexible intake and orchestration layers that improve workflow integration across siloed tech. Expect major platforms to either acquire or embed these capabilities.
6. Industry Transformation
Technology, energy shifts, and workforce demands are reshaping the operational model. Retailers will need adaptive strategies to maintain productivity and relevance.
