During a recent series of conversations with FourKites’ leadership, an intriguing pattern emerged in how they view supply chain transformation for 2025. CEO Matt Elenjickal and EVP of Technology Sriram Nagaswamy spoke candidly about the gap between AI’s promise and its practical limitations in supply chain operations. Principal Solution Consultant Stephen Dyke added a particularly sharp observation: while everyone talks about disruption, the real story lies in how companies are quietly rebuilding their operational foundations. Here’s what my discussions with Matt, Sriram and Stephen revealed about supply chains in 2025.

The critical need for cybersecurity in supply chains

According to Matt, the need for robust cybersecurity in supply chains is a non-negotiable priority. As cyber security incidents become more frequent and severe, the industry, which has historically underinvested in cybersecurity, faces increased vulnerability. By 2025, cybersecurity investment will no longer be a choice but a necessity. I believe that as part of every digital transformation effort it’s important that businesses evaluate their existing systems and processes while ensuring that security is at the forefront for any new deployment.

The surge of new entrants and the role of AI in supply chain innovation

The landscape of supply chain tech companies is shifting, and new entrants are expected to upend the market in 2025. With venture capital funding and investments in supply chain companies and technology on the rise, AI is accelerating innovation in the supply chain industry with the potential to leapfrog incumbents. Matt notes that the industry should not underestimate the threat of emerging companies, which may capitalise on the rapid advancements in AI and other cutting-edge technologies to reshape supply chains.

Artificial intelligence is accelerating innovation in supply chains, enabling companies to scale operations without adding headcount, preventing stockouts as well as OTIF penalties, reducing expedited shipping costs, and freeing skilled workers for strategic initiatives among other things.

AI, automation, and upskilling: The future 

of work in supply chains

It’s a foregone conclusion that automation and AI will play a central role in the supply chain industry next year. But, as Sriram points out, as adoption grows so, too, will the number of errors, failed deployments and other growing pains. 

While AI can efficiently handle routine tasks, its performance in complex, unpredictable situations is still imperfect. This, combined with fears about job replacement, will drive more scepticism of AI.

In anticipation of AI challenges, tech leaders in 2025 must create safeguards to minimise potential negative business impacts. They must also invest in their teams, allowing for continuous learning and adaptation — retraining and repurposing employees for higher-level tasks as AI adoption grows across the organisation — and consistent and clear communication so employees know exactly what to expect.

Internet-of-Things standardisation and the importance of traceability

Stephen highlights the critical role that Internet of Things (IoT) standardisation will play in traceability and transparency across industries, such as food and beverage (F&B), pharmaceuticals, high-tech and high-value goods. Recent outbreaks of foodborne illnesses have raised awareness around the need for traceability and transparency. In response, companies will likely investment in technologies like IoT standardisation to ensure that they have the right protections in place.

Geopolitical tensions and economic pressures on global supply chains

Supply chain leaders will continue to grapple with geopolitical tensions, economic pressures and pushes for technological transformation. Trade protectionism has moved beyond simple tariffs to become a strategic tool, with the US and EU implementing stricter measures while China shows signs of more active responses through targeted actions. 

Companies are responding by rebuilding their supplier networks with greater emphasis on resilience. This is particularly evident in the automotive and semiconductor sectors, where businesses have increased their supplier bases by over 20 percent since 2021, reflecting a broader shift from pure efficiency to risk-managed operations.

Supply chain technology investments are proving both promising and problematic — while AI and automation offer efficiency gains, their implementation faces real-world constraints, as seen in the controversies surrounding US port automation and the selective value of AI in supply chain operations. 

The true challenge for supply chain professionals lies in balancing these competing demands: maintaining enough operational efficiency to control costs while building sufficient flexibility to handle disruptions.

Data normalisation and the role of AI in operational efficiency

Data will continue to be a critical asset for supply chain companies in 2025. Stephen emphasises the importance of normalising and training AI to drive operational efficiency. Identifying practical use cases for AI in the short term will be essential for momentum in AI adoption. As companies begin to implement AI-driven solutions, data normalisation will be the foundation upon which these technologies can flourish.

Conclusion

The supply chain story of 2025 won’t be about any single technology or challenge — it will be about integration and balance. As Stephen points out, success will depend on how well companies can weave together enhanced supplier networks, selective automation, and strategic risk management into their core operations. The winners won’t necessarily be the biggest or most technologically advanced players but rather those who master this balancing act while keeping their operations agile enough to pivot when needed.

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