If you’re like us, you’ve got one foot in 2024 – finishing the year out strong – and one foot in 2025, thinking about what’s next. There’s plenty of opportunity for supply chain experts in the coming year, with AI-driven technology rapidly changing the way warehouses and DCs move, store and pick goods. But with opportunity comes complexity. How do we maximize these tools to help our businesses keep up with global economic trends?
That was the overarching theme of our 2024 Supply Chain Solutions Summit, held in October. During the summit, our operational team gathered to strategize how we will help customers prepare for change while ensuring their day-to-day operations remain interrupted.
Here are three pivotal topics that frequently emerged in our discussions – and how Kenco can help our customers address them.
Navigating tariff uncertainty
As January ushers in a new economic agenda in Washington D.C., the possibility of increased tariffs on a wide range of imports has led several businesses to begin planning for potential cost hikes. The GEP’s Global Supply Chain Volatility Index rose to -0.20 in November, with the smallest level of spare capacity across global supply chains in months and reports of safety stockpiling across North America.
While the specifics of when and how new tariffs will be implemented remain unclear, this uncertainty underscores the importance of agility and flexibility in a supply chain partner. Not only do businesses need space to stock up on essential imports subject to price increases, but they also need to strategically position those reserves as close to demand as possible.
Kenco offers a network of over 100 flexible warehouse spaces that can adapt to changing regulations and market demands – take a look at the complete map here. By joining a diversified network, shippers can ensure their goods are stored and distributed efficiently, minimizing the impact of external pressures on their supply chains.
Strengthening cybersecurity and business continuity
Speaking of uncertainty, perhaps the quickest shock a supply chain can experience today is a cyberattack. When a bad actor gains a foothold at any node along the chain, they can cripple operations from the manufacturer to the last mile. And as we’ve seen in ransomware attacks across the U.S., all it takes is one click or one flaw in a software solution to cause millions of dollars in damage. One estimate, from Cybersecruity Ventures, places the cost of global supply chain cyberattacks at $60 billion in 2025 and $138 billion by 2031.
Because external partners can sometimes serve as an entry point for hackers to reach a global supply chain, it’s crucial for third-party logistics providers to approach cybersecurity with the same scrutiny as their global customers. At Kenco, we conduct regular security audits, maintain stringent data protection protocols and ensure compliance above industry standards.
We’re also continually looking for ways to strengthen security across our business units. For example, our transportation team recently implemented even stricter standards for any carrier that wants to be listed in our database, preventing fraudulent carriers from contracting for a shipment. And, to ensure we’re ready in the event of an attempted breach, Kenco has developed a structured incident response plan that outlines procedures for detecting, addressing, and recovering from cyber incidents.
Embracing AI, automation, and digitalization
Supply chain experts certainly aren’t strangers to the efficiencies of artificial intelligence. Robots have become such a common feature of the modern warehouse that some businesses now have facilities running entirely on automation. They can increase the protectivity of a human picker by leaps and bounds, and reduce errors in an industry that demands perfection.
While automation of physical supply chain tools is unlikely to slow down, it’s the automation of data-driven processes that will likely receive the most attention in 2025. An Ernst & Young study found 40% of supply chain organizations are investing in generative AI, leveraging the technology to forecast demand more accurately, examine and improve supplier relationships, and optimize last mile delivery, among other applications. For businesses with well-organized data, the path to finding efficiencies throughout the supply chain has become considerably easier.
At Kenco, we’re implementing AI across both our physical and digital tools. For example, we created our SlotDC solution out of a need to automate manual zoning and slotting at facilities with complex SKU profiles. By analyzing vast amounts of data, the tool created a picking heat map to show potential inefficiencies and drove six figures in annual cost reduction for one customer alone.
Preparing for whatever comes
If supply chains have learned anything from the last few years, it’s to expect the unexpected. Consumer demands shift overnight, technological capabilities rapidly evolve, world events have ripple effects that still impact the movement of goods years down the line. The best strategy for 2025? Position your organization so you can take advantage of change, rather than scramble to react. Finding flexibility within your supply chain and embracing technology to reduce inefficiency can help you find strong footing in the new year.