LAS VEGAS — Global trade shifts, advancements in technology and changing workforce needs are among the key developments supply chain leaders will have to adapt for in the years ahead, a DHL Supply Chain leader said at Manifest 2025.
Patrick Kelleher, North America CEO for the contract logistics provider, said in a Feb. 11 conference session that there are five "megatrends" transforming supply chains, some of which are influenced by hot topics like artificial intelligence and tariffs. These trends are:
- Changes in global trade patterns as supply chains diversify
- Growing e-commerce activity, with an increased emphasis on local fulfillment
- Addressing climate change through low-carbon logistics solutions
- Keeping up with digitalization, leveraging technology for success
- An evolving workforce with new skills to consider
On the global trade front, Kelleher noted supply chains are getting longer despite companies' focus on efficiency and productivity. One example of this is products being partially manufactured in China before being completed in Vietnam or Thailand, and then being shipped to Mexico prior to entry into the U.S., he said.
"Those handoffs come with a lot of complexity, and that's where mistakes can happen," Kelleher said, adding that supply chain visibility is critical amid multiple handoffs.
Longer supply chains also mean higher inventory carrying costs for companies, a financial hurdle compounded by fresh tariffs. Kelleher said tariffs are being levied as countries compete to be the world's manufacturing hub, a trend that could drive companies to ship goods in smaller quantities or leverage Foreign-Trade Zones.
For the e-commerce sector specifically, Kelleher sees companies shifting more toward local fulfillment solutions with the ability "to dynamically move fulfillment capabilities from one country to another" as new disruptions are introduced. Whatever way supply chains shift, Kelleher said DHL must be stewards of low-carbon solutions like sustainable aviation fuel. That comes with added expenses, but the tradeoff is necessary as governments introduce new climate-minded regulations for companies to navigate.
Companies also have to weigh technological disruptions to prepare their supply chains for success. Kelleher said DHL is placing a "significant amount of focus on" cybersecurity, adding that supply chain leaders should know their organizational priorities on that front along with their company's Bitsight scores. Bitsight security ratings offer a measurement of health for an organization's cybersecurity program.
"This is going to become the new currency in terms of how players in our industry trade with each other, and there's going to be a minimum standard in terms of cybersecurity in order to be part of the number of players that participate, and especially participate in those handoffs with data and connectivity," Kelleher said.
As digitization changes supply chains, Kelleher said the industry needs to attract talent with skills in engineering, data analytics and AI to help leverage new technology. However, new innovations don't reduce the need for tried-and-true inventions.
"Somebody told me that the most important technology in supply chain has been and will continue to be the alarm clock," Kelleher said. "If your driver does not have an alarm clock and he does not get up, that is a disruption in the supply chain. And so we have to make sure that the environment that we've created for people is such that they love coming to work."
