Inbound Logistics | January 2025

BRIGHT SPOTS

Suppliers and distributors are now better equipped to handle unexpected events. Investments in AI, digital supply chains, and multi-sourcing will continue to provide additional flexibility and control. Inventory levels have also become more normalized. Long lead times in the supply chain previously caused an excess of inventory. However, we now see a rightsizing of the amount of inventory to meet demand. – CHANDLER GREER , Vice President, Supply Chain, ScanSource

Sustainable innovation remains a bright spot. There are more oortunities than ever to move gds sustainably while balancing cost constraints.

Air cargo. The overall financial performance of airlines should

– MATT MUENSTER , Chief Economist, Breakthrough

improve, supported by lower jet fuel prices and other e†ciency gains. Cargo

demand will grow and freight rates are expected to be lower than they have been for the past decade. This will

Healthy consumers; more goods. Despite high inflation rates and fears of a recession, the consumer and U.S. economy have remained resilient post- pandemic. Overall, consumer spending is improving while retail inventory positions remain healthy. We expect a reversion towards goods following a recent focus on experiences. – JARED WEISFELD , Chief Strategy Ocer, RXO

be supported by the unending growth of ecommerce as well as geopolitical uncertainty, particularly around sea shipments routed through the Suez Canal. – RICHARD HAKES , Chair, Transportation Industry Group, Reed Smith

Technology democratization will empower smaller businesses to leverage tools such as AI and digital twins, improving their ability to compete. – CHAO MING YING , Chief Technology Ocer, New Horizon Soft

1. 2.

Implementing new technological resources will be a bright spot for companies and supply chain leaders. Respondents to McKinsey’s supply chain pulse survey report good progress in their eŒorts to improve supply chain intelligence, planning, and risk management. The share of respondents with

The pandemic cycle that began in spring 2020 and lasted 48 months—six months longer than usual—is over. Slow, steady growth in truckload volumes should be an encouraging sign. Unless there’s a shock to suly chains, expect truckload rates, volumes, and demand for capacity to grow at a manageable clip.

comprehensive visibility of their tier- one suppliers reached 60%, making 2024 the second year in a row that this measure has increased by 10 percentage points. – ALBERTO OCA , Partner, McKinsey & Company

– CHAD KENNEDY , Senior Manager, iQ Product, Benchmark Analytics, DAT Freight & Analytics

98 Inbound Logistics • January 2025

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