The Top 4 Supply Chain Strategies to Consider in 2025
A new year means new, often unforeseen supply chain disruptions. From natural disasters to geopolitical tensions, 2025 will be another year of uncertainty and change across industries. With that in mind, we asked our supply chain experts what key trends they are paying attention to as 2025 begins. They then shared four strategies supply chain leaders can leverage to navigate the new year.
Mitigate Supply Chain Disruptions
Supply chains are a top three risk for businesses in 2025. The new year will contain a variety of logistics risks—from geopolitical challenges to inflationary pressures and beyond. Organizations will need to assess and mitigate disruptions created by trade and tariff changes, environmental regulations, and the risks created by new technologies like GenAI.
- Scan for risks constantly: Scan for risks across supply chains, leverage data and more sophisticated technology to perform due diligence and prepare for supply chain disruptions. Work with experienced partners to gain multiple perspectives on prevention and mitigation strategies.
- Adapt with data and technology: Continue to adopt and implement data-driven technologies to improve real-time data analysis and risk modeling. This will drive the end-to-end visibility necessary to rapidly assess and respond to disruptive events.
- Include sustainability goals: Assess current sustainability goals and prepare for climate change-driven volatility across global supply chains.
Adapt to Consumer and Demographic Expectation Shifts
Consumers continue to have very high expectations for brands across industries, especially when it comes to eCommerce delivery promises. They want their products fast and free whenever possible.
The shift to faster, less expensive delivery promises extends beyond traditional eCommerce industries like apparel and footwear. According to recent Radial research, certain non-traditional industries are seeing a shift in customer eCommerce expectations—especially for younger shopper demographics.
- Home furnishings: Forty percent of Gen Z shoppers comparison shop online before they buy home furnishings. And free shipping is the biggest driver to encourage shoppers to buy more home furnishing products. Many consumers, especially Millennials and Gen Z, are also concerned with quality shipping experiences—where no products show up damaged or broken.
- Sporting goods: Younger generations expect faster shipping speeds for sporting goods. Up to 40% of Millennials and Gen Z shoppers expect smaller items, like apparel, equipment, and wearables, to arrive same-day or next day. Once again, they also expect free returns.
- Home improvement: Home improvement brands traditionally have less eCommerce penetration than other industries. But for those consumers buying home improvement products online, it’s all about quality and reasonable shipping prices. The challenge: Home improvement products can be heavy or bulky, making efficient, inexpensive shipping difficult.
Across industries, 90% of consumers claim that shipping accounts for at least half of the online brand experience. And 79% will avoid a brand in the future after a bad post-purchase experience. Leading brands must prepare to meet customers’ expectations or lose their loyalty fast.
The good news: 76% of C-suite executives acknowledge that their organizations’ supply chains play a vital role in overall customer experience. Now, they must reassess existing supply chains, technology solutions, partners, and consumer demand trends to continue providing great customer experiences in 2025.
Adopt or Integrate Enhanced Technologies
Logistics leaders can continue to create a competitive edge by adopting and integrating with the right technology tools. Many organizations will continue testing, piloting, adopting, and optimizing technologies like machine learning, digital twins, augmented reality, and GenAI to optimize supply chain operations and create greater transparency.
- Organization seek cost savings via real-time data analytics: By leveraging real-time data to drive dynamic decisions, as well as leveraging historic trends information to predict future demand, logistics leaders can create cost savings while avoiding stockouts and demand slumps.
- Logistics leaders discover emerging trends with AI: Supply chain leaders can use breakthroughs in artificial intelligence to discover emerging consumer trends or demand patterns. They can also optimize inventory visibility and prioritize products to meet customer demands and retailer requirements.
- Regulatory changes require greater transparency: Technology solutions will allow supply chain leaders to increase supply chain transparency and traceability. This will allow them to prepare for and meet changing regulatory requirements.
While new technologies create exciting opportunities for supply chain leaders, technology adoption is not evenly distributed. Per EY, only 42% of supply chain leaders have started to adopt digital tools or cloud-based platforms. Twenty-two percent say their digital connectivity is limited to sharing emails and spreadsheets.
Focus on Quality and Experience
Consumers spent much of 2024 with financial anxieties at the forefront. They enter the new year with continued uncertainty, as tariffs and inflation threaten markets. With consumers sensitive to price and looking for value in every purchase, retailers can shift toward higher quality products and high value customer experiences to increase sales and beat the competition.
- Cheap alternatives may leave customers unsatisfied. With the increase in inexpensive online alternatives found across marketplaces, consumers have already purchased lower quality goods to save money. But cheaper products often wear out faster, have safety issues, or do not provide the experience consumers expect. That leads many shoppers to search for higher quality, even if price points increase.
- Customers want high quality experiences in-store and online. 64% of consumers want to shop at a retailer or brand that has both a physical and online store. Creating great in-store and online experiences leads to repeat purchases and long-term loyalty. Eighty-four percent of shoppers say they will return to stores providing great experiences.
- Shoppers return to stores to ensure quality. Recent Radial surveys indicate that consumers crave quality and will shop in stores in order to ensure their purchases are high quality. Forty-one percent of US shoppers will go to stores to see, touch, and feel the quality of a product before purchase.
- Tariffs could make inexpensive products more expensive and less convenient. Changes in US tariff policy could lead to higher prices on formerly inexpensive imports. Where brands previously used price cutting as a competitive tactic, they may now be forced to increase prices, making switching costs lower for consumers searching for the right blend of quality, convenience, and cost. Further, with the proposed revocation of the $800 de minimis provision for Chinese origin goods, shipments direct from China to consumers will now require formal clearance. This creates a variety of challenges, including higher duties, taxes, and fees—as well as more frequent delivery delays. The result: eroded customer experiences and unhappy consumers.
Some brands have already made pivot away from entrenched cost-cutting strategies and toward providing higher quality customer experiences. For example, Barnes & Noble shifted its strategy to focus on local stores and book selections, as well as to hire full-time employees dedicated to providing great in-store experiences. After a decade of decreasing sales, the bookstore chain is once again expanding its market share. It opened 57 new stores in 2024.
Prepare for the Future with Radial
The future is full of uncertainty. For many brands, it will be important to implement new strategies—and to find trusted partners—during periods of disruption.
For many leading brands, that partner is Radial.
Radial works with retailers to create seamless logistics solutions designed to delight customers. Radial’s 30+ years of experience, expertise with efficient order fulfillment, and innovative payment solutions position brands to compete and meet supply chain disruptions. We understand that every retailer is unique, and we offer fast, modular solutions for your growing needs. Radial also provides high-touch services that empower retailers to keep their brand promises.
Radial’s solutions are designed to scale seamlessly with your business, allowing you to adapt to changing market conditions and customer expectations. Whether you’re experiencing rapid growth, seasonal fluctuations, or unforeseen challenges, our scalable infrastructure and flexible solutions mean you can expect robust performance and results.
Learn how Radial can help you with eCommerce fulfillment.
