Top five trends shaping supply chains in 2025

Shifting consumer demands, rising costs, and rapid technological advancements, will drive significant transformations in supply chains in 2025. Staying ahead of industry trends is crucial for maintaining competitiveness and meeting the evolving demands of customers.

Building on our predictions for resilient supply chains in 2024, NewCold’s latest insights reveal the top five trends shaping supply chains in 2025. Our forecast offers actionable strategies to enhance efficiency, reduce costs, and stay ahead of the competition.

The rise of customer-centric supply chains

Last year, NewCold predicted that organizations would increasingly focus on achieving the lowest total supply chain costs while maintaining high customer service levels. This trend has indeed materialized. In answer to this challenge, automation has continued to be a key focus of solutions.

In 2025, NewCold foresees sustained growth of automated warehousing, with consolidation remaining a central theme. Additionally, there is a growing emphasis on “futureproofing” supply chain solutions to enhance resilience by addressing potential challenges while keeping costs in check.

Automation is becoming the standard across various processes. For instance, the automation of case picking and layer picking has become so prevalent that it is often assumed to be in place, regardless of actual implementation.

A notable trend is the rise of drop yards around warehouses, which help mitigate transport volatility and ensure on-time delivery to end customers.

However, outdated infrastructure often fails to meet current customer needs, highlighting the need for modernization. Modernizing infrastructure is crucial for maintaining high levels of customer service and customization, as it allows for more efficient and flexible operations that can better respond to customer demands.

Post-pandemic labor challenges and inflation

As the world continues to navigate the post-pandemic landscape, there is a perception that labor availability has returned to pre-pandemic levels. However, labor shortages persist, creating a scarcity of workers within the supply chain. This ongoing labor shortage underscores the critical role of automation in maintaining strategic operations.

However, the limited availability of skilled experts continues to be a challenge in realizing the full potential of automation projects.

In addition, the cost of capital has risen significantly in recent years, impacting the economic feasibility of automation initiatives. Although costs may decrease from their peaks, economic pressures remain. Organizations are likely to seek outsourcing partners to unlock warehouse automation projects, leveraging synergies of scale, scope, and cost.

This strategy can help mitigate the financial burden and accelerate the implementation of advanced technologies. However, it also introduces challenges, such as managing third-party relationships and ensuring consistent quality and performance.

Geopolitical influences on global logistics

Geopolitical factors significantly impact the international flow of goods, whether through physical changes in shipping routes or administrative factors like import tariffs. As these issues evolve over the coming years, they will undoubtedly affect supply chains in various ways. For instance, trade wars and sanctions can lead to increased costs and delays, while changes in international trade agreements can alter the competitive landscape.

The impact of these geopolitical changes will vary across companies. However, it underlines the need to build greater resilience and agility in supply chains — and reinforces the criticality of trusted partnerships.

Optimizing supply chains for resilience and agility

High inflation and increased capital costs have shifted the focus to cost control and working capital reduction. Automated warehouses offer smart technology and synergies of scale, reducing operating cost inflation and improving inventory control — these are crucial for food shippers.

Highly automated warehouses enable companies to handle larger volumes of goods more efficiently, leading to significant cost savings and enhanced inventory management.

However, the cost to build these warehouses has risen significantly and is expected to continue increasing in 2025 and beyond. This trend underscores the importance of leveraging the synergies of scale that multi-customer warehouses bring. By sharing warehouse space and resources, companies can reduce individual costs and benefit from collective efficiencies.

NewCold does not anticipate a decrease in the costs of warehouse construction in the coming years. Consequently, there is a first-mover advantage in developing these synergies today rather than delaying. Companies that invest in multi-customer warehouses now can benefit from reduced costs and enhanced operational efficiencies, positioning themselves ahead of the competition. This proactive approach not only mitigates the impact of rising costs but also strengthens supply chain resilience and agility.

Scope 3 reporting: turning challenge into opportunity

In 2024, Scope 3 reporting was highlighted as critical in the path to net-zero emissions in the supply chain. Scope 3 reporting involves measuring and analyzing indirect emissions that occur in a company’s value chain, including transportation and warehousing. While it has traditionally focused on transportation, we have seen and will continue to see an increase in warehouse reporting as well. This shift recognizes the significant role that warehousing plays in a company’s overall carbon footprint.

As global legislation on Scope 3 reporting becomes more stringent, the benefits, including reduced energy consumption and improved sustainability, will become increasingly evident to food shippers. Enhanced transparency, better risk management, and improved stakeholder trust are additional advantages of comprehensive Scope 3 reporting. Companies that proactively adopt these practices will not only comply with regulations but can also gain a competitive edge by demonstrating their commitment to sustainability.

The future of advanced food logistics

In 2025, the food supply chain industry is set to undergo transformative advancements. In this rapidly evolving landscape, staying informed and adaptable is not just beneficial but essential for maintaining a competitive edge. Embracing automation will streamline operations and reduce costs while addressing infrastructure challenges will enhance efficiency and reliability. Focusing on sustainability will not only meet regulatory requirements but also appeal to environmentally conscious consumers.

By proactively addressing these areas, companies can position themselves for long-term success and resilience in a dynamic world.

About NewCold

NewCold is a global leader in advanced food logistics, with 22 warehouses on three continents offering a combined capacity of more than 1.6 million pallet positions. Its state-of-the-art facilities are highly automated and energy efficient. With a growing transport fleet, NewCold provides end-to-end supply chain solutions to leading food companies powered by proprietary technology and backed by a team of 2,500 people.

www.newcold.com