While additive manufacturing (or 3D printing) has the potential to greatly reduce shipping costs and make operations more efficient, it can also make the supply chain more vulnerable to cyberattacks and counterfeiting. Blockchain technology may hold the answer for increasing security.
Dana Ellis is the senior program manager at the National Center for Manufacturing Sciences (NCMS). NCMS is a member-based organization that leverages its network of industry, government, and academia to develop, demonstrate, and transition innovative technologies efficiently, with less risk and lower cost.
Frank Schuster is director, program operations, at the National Center for Manufacturing Sciences (NCMS). NCMS is a member-based organization that leverages its network of industry, government, and academia to develop, demonstrate, and transition innovative technologies efficiently, with less risk and lower cost.
Imagine a worker being able to print specialized parts while on a construction site, or a mechanic being able to manufacture a replacement for a faulty engine part with the click of a few buttons. Sound like science fiction? Maybe, but these scenarios are rapidly becoming the new reality thanks to additive manufacturing (AM).
AM—a technology that builds 3D objects by adding layer upon layer of material regardless of whether that material is plastic, metal, concrete, or even human tissue—is fundamentally changing how companies manufacture, distribute, and maintain products. Because AM allows parts to be manufactured at the place and time of need, more and more companies are moving toward a decentralized manufacturing model freed from its traditional geographical restraints.
This shift dramatically alters the nature of supply chains, by replacing traditional networks consisting of a few original equipment manufacturers (OEMs) and suppliers with vast ecosystems of potential manufacturers and subcontractors. It also makes supply chains increasingly dynamic and offers requestors/customers a convenient source of supply. Product lifecycles are significantly shorter, while ramp-up and ramp-down periods are more intense.
Yet while additive manufacturing offers all of these benefits, it does not come without added risk. The digital nature of the AM supply chain can also make it more vulnerable to cyberattacks, counterfeiting, and tampering. The answer to these concerns may lie in another new innovative technology: blockchain.
A growing risk
Even in its more traditional format, manufacturing is one of the most targeted sectors for cyberattacks. A recent study by LNS Research indicates that more than half of the manufacturers participating in the survey experienced cyber-security breaches over the past year.1 These attacks are usually focused on industrial control systems at manufacturing sites and machines.
AM provides cyber criminals with a new potential target: the parts themselves—or more specifically, their "digital twin," a digital file that contains the parts' specs and manufacturing instructions. That's because the effectiveness of AM depends almost entirely on the integrity of digital files to tell the 3D printing mechanism what to do. Quite simply, the finished state of the printed item can only be as good as the digital instructions the printer receives to manufacture it. As a result, the delivery and security of those digital files is paramount.
Additive manufacturing increases not only the importance of digital files but also the number of organizations receiving highly sensitive product data. In the traditional manufacturing model, the company that creates the design files would also handle manufacturing and then shipping of the final product. In the AM supply chain, however, this is no longer the case. In an AM ecosystem, numerous product variations move through multiple parties, all of which are attempting to coordinate work together. All of these transmissions could be compromised or hacked, and the design files could fall into unauthorized hands and/or be used to create counterfeit, maliciously modified, or uncertified parts.
The power and potential of blockchain
To ensure the integrity and traceability of digital files and assure their secure delivery at each stage in the supply chain—from the file developer all the way to the end user—more companies are turning to blockchain. Blockchain functions like a distributed database that maintains a continuously growing list of ordered records ("blocks"). Because blockchains time stamp each record and link it to a previous block, they are inherently resistant to modifications of data.        Â
Blockchain works by storing information (such as design files) across each phase of the digital supply chain—design, distribution, manufacturing, and in-field—on participating nodes. A node is any electronic device connected to the blockchain network that automatically downloads and stores a copy of the blockchain. All transactions (such as the transfer of a file from one entity to another or a modification to a design file) within a block of data are cryptographically hashed (or given a unique digital fingerprint) along with the previous block to form the current block. As a result, any data modifications would result in a new digital fingerprint and—since the blockchain network is governed by consensus—the authenticity of any transaction can be rejected as fraudulent.
Bottom line? While blockchain technology has taken on many different forms and has had many distinct applications, the underlying concept of all blockchain-based systems is similar. While blockchain does not directly keep the data it transmits secure, it does have the ability to indicate when files have been tampered with and to expose when a file has been corrupted.
So, if an additive manufacturing supply chain implemented blockchain at the transactional node level, it would assure that all assets were traceable and their provenance known and that users could see the full lifecycle of the part.Without blockchain, security relies on encryption alone, and there is no way to really determine if a digital file has been corrupted. Blockchain grants authenticity by exposing if a file has been corrupted or changed.
To be effective, though, it is essential to secure supply chain data at each phase of the AM digital supply chain. This begins with the design phase, where both the final design of the part and all of its associated engineering data need to be considered highly valued assets that require protection. Securing supply chain data could require file encryption, digital licenses and smart contracts, and digital references as well as the use of blockchain.
By encrypting the design files, part designers ensure that only authorized users will have access to the information enclosed. Doing so blocks access to the design files until they are decrypted by a designated AM machine. A smart contract then acts as a licensing mechanism, that will allow the owner of the intellectual property to define who can have access to that data, for what length of time, and how and where that data is to be used in manufacturing the part.
In the traditional manufacturing model, the company that creates the design files would also handle manufacturing and then shipping. In the AM supply chain, however, this is no longer the case. Instead the parts designer transmits the encrypted design files—along with an accompanying digital license—to downstream companies that are part of the supply chain via email, an offline system, or direct access to the company's server from one system to another, depending on the level of security measures required.
Given the potential for such measures to be compromised, using a smart contract-enabled blockchain here is essential. Doing so allows the digital distribution license to be authenticated, transported, and recorded by blockchain transactions. It also enables all members of the blockchain to participate in and substantiate design data provenance, while simultaneously enforcing the distribution and asset management rules set by the smart contract.
Engineers can also use blockchain to apply business and production rules to the encrypted design files that will specify the make and model of the machine allowed to execute the design, the types of build materials permitted, and various other build parameters. Manufacturers will only be able to decrypt the design files once these specifications are met. Moreover, production rules will control the number of parts each manufacturer is licensed to print. This ensures quality standards are met and prevents counterfeits from being made on authorized equipment. Additionally, the blockchain ledger will track and store all events associated with the lifecycle of the part design so the provenance of each part can be verified and any errors detected in end products can be traced to their source.
Finally, when a physical part is manufactured, it should be tagged with a digital reference and recorded in the blockchain ledger. For example, parts could be coded with a chemical tracker, radio frequency identification tag, or serialization number that can then be matched to information stored in the digital ledger. Doing so provides a link between the digital and physical thread that can be used to trace any part back to its manufacturer, the machine that created it, the conditions under which it was created, and the original design creator. The blockchain ledger can also be used for performance modeling, failure simulation, and overall performance improvement of a specific part.
"An elegant solution"
As more industries realize the benefits of AM, it will become important for companies to recognize that the products of AM are only as viable as the integrity of the digital files and the printers that create them. Clearly, securing the digital supply chain with blockchain technology is critical. Blockchain serves as a hedge against lost revenue caused by intellectual property (IP) theft.
For manufacturers in the government and military space, the benefits go even beyond protecting against IP theft, as counterfeit parts could threaten safety and national security. The Department of Defense (DoD) named supply chain integrity and counterfeit parts as two of its top concerns for the electronics sector in its Fiscal Year 2017 Annual Defense Industrial Capabilities Report.
According to the DoD report, one of the key reasons that counterfeit parts enter the supply chain is technological obsolescence, where the equipment is no longer manufactured by the OEM and must then be purchased from third party. According to the DoD report, between 50 percent and 80 percent of suspected counterfeit parts were for obsolete equipment at the time of discovery.
One of the benefits of AM in the defense space is that it allows suppliers to store designs for replacement parts that OEMs have stopped manufacturing and produce them on the spot. Blockchain can validate that suppliers are using the correct design file.
For these reasons, the Department of Defense is very interested in the potential of blockchain to be used in AM supply chains. "Blockchain is an elegant solution," said Steven Dobesh, Commander, U.S. Navy, Technology & Innovation Branch Chief, Joint Chiefs of Staff-J4. "It will address the concerns of securing the digital thread of AM. I think it is the best answer to the important issue of traceability and provenance. We must have the same level of confidence when we pull a part off the printer that we currently have when we pull a physical part off the shelf. Blockchain will help us to achieve this through an append-only immutable ledger of transactions."
With any new technology comes disruptions to culture, thinking, and the supply chain. Additive manufacturing paired with blockchain technology is just this kind of disruption. While best practices for securing and authenticating data and ultimately improving the digital supply chain through blockchain-enabled security solutions still need to be determined, blockchain technology undoubtedly holds the key to counterfeit mitigation, data integrity, compliance rights, and feedback monitoring.
In the end, incorporating blockchain into the manufacturing cycle will lead to faster production by accelerating time to market and reducing physical storage requirements. This will enable additive manufacturing to live up to its full potential.
p>Notes:
1. Matthew Littlefield, Putting Industrial Cyber Security at the Top of the CEO Agenda, LNS Research and Honeywell, 2017.
Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.
The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of 14 port facilities up and down the coast.
Details of the new agreement on those issues have not yet been made public, but in the meantime, retailers and manufacturers are heaving sighs of relief that trade flows will continue.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” Gold said.
The next step in the process is for both sides to ratify the tentative agreement, so negotiators have agreed to keep those details private in the meantime, according to identical statements released by the ILA and the USMX. In their joint statement, the groups called the six-year deal a “win-win,” saying: “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The breakthrough hints at broader supply chain trends, which will focus on the tension between operational efficiency and workforce job protection, not just at ports but across other sectors as well, according to a statement from Judah Levine, head of research at Freightos, a freight booking and payment platform. Port automation was the major sticking point leading up to this agreement, as the USMX pushed for technologies to make ports more efficient, while the ILA opposed automation or semi-automation that could threaten jobs.
"This is a six-year détente in the tech-versus-labor tug-of-war at U.S. ports," Levine said. “Automation remains a lightning rod—and likely one we’ll see in other industries—but this deal suggests a cautious path forward."
Maersk’s overall view of the coming year is that the global economy is expected to grow modestly, with the possibility of higher inflation caused by lingering supply chain issues, continued geopolitical tensions, and fiscal policies such as new tariffs. Geopolitical tensions and trade disruptions could threaten global stability, climate change action will continue to shape international cooperation, and the ongoing security issue in the Red Sea is expected to continue into 2025.
Those are difficult challenges, but according to Maersk, a vital part of logistics planning is understanding where risk and weak spots might be and finding ways to dampen the impact of inevitable hurdles.
They include:
1. Build a resilient supply chain As opposed to simply maintaining traditional network designs, Maersk says it is teaming with Hapag-Lloyd to implement a new East-West network called Gemini, beginning in February, 2025. The network will use leaner mainliners and shuttles together, allowing for isolation of port disruptions, minimizing the impact of disruptions to supply chains and routes. More broadly, companies should work with an integrated logistics partner that has multiple solutions—be they by air, truck, barge or rail—allowing supply chains to adapt around issues, while still meeting consumer demands.
2. Implementing technological advances
A key component in ensuring more resilience against disruptions is working with a supply chain supplier that offers advanced real-time tracking systems and AI-powered analytics to provide comprehensive visibility across supply chains. An AI-powered dashboard of analytics can provide end-to-end visibility of shipments, tasks, and updates, enabling efficient logistics management without the need to chase down data. Also, forecasting tools can give predictive analytics to optimize inventory, reduce waste, and enhance efficiency. And incorporating Internet of Things (IoT) into digital solutions can enable live tracking of containers to monitor shipments.
3. Preparing for anything, instead of everything Contingency planning was a big theme for 2024, and remains so for 2025. That need is highlighted by geopolitical instability, climate change and volatility, and changes to tariffs and legislation. So in 2025, businesses should seek to partner with a logistics partner that offers risk and disruption navigation through pre-planned procedures, risk assessments, and alternative solutions.
4. Diversifying all aspects of the supply chain Supply chains have felt the impact of disruption throughout 2024, with the situation in the Red Sea resulting in all shipping having to avoid the Suez Canal, and instead going around the Cape of Good Hope. This has increased demand throughout the year, resulting in businesses trying to move cargo earlier to ensure they can meet customer needs, and even considering nearshoring. As regionalization has become more prevalent, businesses can use nearshoring to diversify suppliers and reduce their dependency on single sources. By ensuring that these suppliers and manufacturers are closer to the consumer market, businesses can keep production costs lower as well as have more ease of reaching markets and avoid delay-related risks from global disruptions. Utilizing options closer to market can also allow companies to better adapt to changes in consumer needs and behavior. Finally, some companies may also find it useful to stock critical materials for future, to act as a buffer against unexpected delays and/or issues relating to trade embargoes.
5. Understanding tariffs, legislation and regulations 2024 was year of customs regulations in EU. And tariffs are expected in the U.S. as well, once the new Trump Administration takes office. However, consistent with President-elect Trump’s first term, threats of increases are often used as a negotiating tool. So companies should take a wait and see approach to U.S. customs, even as they cope with the certainty that further EU customs are set to come into play.
For an island measuring a little less than 14,000 square miles (or about the size of Belgium), Taiwan plays a crucial role in global supply chains, making geopolitical concerns associated with it of keen interest to most major corporations.
Taiwan has essentially acted as an independent nation since 1949, when the nationalist government under Chiang Kai-shek retreated to the island following the communist takeover of mainland China. Yet China has made no secret of the fact that it wants to bring Taiwan back under its authority—ambitions that were brought to the fore in October when China launched military drills that simulated an attack on the island.
If China were to invade Taiwan, it could have serious political and social consequences that would ripple around the globe. And it would be particularly devastating to our supply chains, says consultant Ashray Lavsi, a principal at the global procurement and supply chain consultancy Efficio. He specializes in solving complex supply chain, operations, and procurement problems, with a special focus on resilience. Prior to joining Efficio’s London office in 2017, he worked at XPO Logistics in the U.S. and the Netherlands.
Lavsi spoke recently with David Maloney, Supply Chain Xchange’s group editorial director, about what might happen if China moves to annex Taiwan—what shortages would likely arise, the impact on shipping lanes and ocean freight costs, and what managers should be doing now to prepare for potential disruptions ahead.
It’s no secret that China has ambitions on Taiwan. If China were to attempt to seize control of Taiwan, how would that affect the world’s supply chains?
There would be wide-ranging disruptions around the world. The United States does a lot of trade with both China and Taiwan. For example, the U.S. imports about $470 billion worth of goods from China, while China imports about $124 billion from the U.S. Meanwhile, Taiwan is the No. 9 trading partner for the U.S. So all of this trade could come to a halt, depending on the level of conflict. Supplies would likely be disrupted, and trade routes could be affected, resulting in delays and higher shipping costs.
Furthermore, there would likely be disruptions to trade not just between the U.S. and China, but also across the board. It could very well be that the NATO members get involved, that South Korea gets involved, that Japan gets involved, the Philippines get involved, so it could very quickly spiral into widespread disruptions.
We’ve seen big changes in the way businesses in Hong Kong operate since Britain handed control of Hong Kong over to China nearly 30 years ago. If China were to succeed in bringing Taiwan under its authority, would we see a similar outcome?
Indeed, I would expect so. I read recently that since around 2020, foreign direct investment in Hong Kong has dropped by nearly 50%, from $105 million to $54 million. The drop was primarily because of increased regulatory oversight. There are now a lot of restrictions on freedom of speech as well as tighter control over business operations. Something similar could very well happen in Taiwan if China were to succeed in taking over the island.
As you mentioned, the United States conducts a lot of trade with both Taiwan and China, and both countries have become strategic supply chain partners. Beyond the diplomatic considerations, what would a military or economic conflict mean for the United States?
There is a lot of trade in goods like agricultural products, aircraft, electronic components, and machinery, and our access to all of those items could be cut off. On top of that, China controls 70% of the world’s rare earth minerals [which are crucial for the production of a wide variety of electronic devices]. So any conflict in the region would almost certainly result in many disruptions, particularly in critical sectors like technology and electronics—disruptions that would lead to shortages and increased costs.
Trade routes would also be affected, resulting in delays and higher shipping costs. U.S. companies would need to seek out alternative suppliers for critical materials or components they currently source in China, if they haven’t already. And if they haven’t lined up alternative suppliers, any hostilities could result in a complete halt in production.
What effect would such a move have on the global economy?
It’s been quite a few years since economies have just been localized. Any disruption now has widespread ripple effects across the world. As we discussed, any conflict between the United States and China naturally pulls in countries like Japan, South Korea, the Philippines, and the NATO countries, and it can very quickly spiral out.
Look at the semiconductor, or chip, shortages. If you recall, back in 2021, those shortages led to almost a half-trillion-dollar loss for the automakers, who lost out on sales of 7.7 million vehicles because they couldn’t meet demand. We could see a repeat of that situation—maybe even on a larger scale.
I found this statistic interesting—we often talk about the semiconductor shortages during the pandemic, but if you look at true production numbers, the actual production of chips went up from 2020, to 2021, to 2022. The shortage was driven not by a drop in production, but rather, by a surge in demand for PCs from people working from home. That demand has since dwindled, but we’d still face a major semiconductor shortage if much of the production were halted. So that’s going to be a very big change, a very big disruption.
Of course, the United States, along with a number of other countries, has taken steps to reduce its exposure to risk by bringing some semiconductor production back to its own shores. But it will take time to get those operations up and running, and their output would still be just a drop in the bucket compared to what’s needed. So what would a takeover of Taiwan mean for the overall semiconductor flow?
It essentially stops, right? Let me paint a picture that illustrates the importance of the Taiwanese semiconductor industry to global manufacturing. Semiconductors go into everything from cars to military equipment to computers to data centers to microwaves—they are in everything around us. Taiwan produces 60% of the world’s semiconductors and more than 90% of the advanced chips. Just let that sink in: More than 90% of all the advanced chips produced worldwide come from Taiwan, primarily from a big fabrication company called TSMC.
So the complexity and the precision required to make advanced semiconductors, combined with the limited number of companies around the world, make Taiwan’s position unmatched. The second-largest producer after TSMC is South Korean-based Samsung, which produces 18%, so that’s the gap that we are talking about.
As you rightly said, there are efforts by governments across the world to reduce their reliance on Taiwan. For example, TSMC is building three fabrication facilities in Arizona—the third with funding from the U.S. government. The first plant is set to go live next year and the third by 2030. But even once all three plants are up and running, the production volumes won’t be close to what TSMC produces in Taiwan. It’s going to take years to reduce our reliance on production in Taiwan. If that supply is cut off, the ripple effect will be tremendous.
Setting aside the historical and political claims China has made on Taiwan, is Taiwan’s dominance in the semiconductor industry a main reason why China has set its sights on it?
It could be. China has been investing heavily in chip production—for instance, today, most, if not all, of the chips in the latest Huawei phones are locally produced in China. But China is still quite a few years behind TSMC. So that’s definitely going to be one of the big factors, right? One article that I found very interesting declared that chips are the new oil. If you control chip production, you control the global market.
Let’s talk about the implications for shipping lanes. If you take a look at the map, you realize that the Taiwan Strait is a very important shipping lane for containerized goods coming out of both China and Taiwan. If China were to institute a military blockade, how would that affect the world’s container flows?
That flow would be affected tremendously. The Taiwan Strait plays a crucial role in global shipping, particularly for goods moving between Asia and the rest of the world. It is one of the busiest shipping lanes, and any blockage would severely disrupt global container flows.
Now let me put that into perspective. Fifty percent of the world’s containerships pass through the Taiwan Strait—50%. That’s a huge number. By comparison, the Suez Canal handles about 20% of global trade. Or to use another measure: 88% of the world’s largest ships by tonnage passed through the Taiwan Strait in 2022.
I’ve been reading up on this in the past few months and it seems that a military blockage is a very likely scenario—one that would cripple Taiwan’s economy without a full-scale invasion. So instead of a mounting a full-on attack, China might just block the strait, which would lead to delays in the delivery of goods, affecting global supply chains and causing shortages across Asia and the U.S.
Given the escalating tensions between China and Taiwan, should shippers and manufacturers be preparing today for a potential conflict?
Businesses have to begin preparing today. If businesses were to say, “Okay, I’m going to wait until the conflict breaks out, and then figure out what I’ll do,” it will be too late. You’re done. Your production comes to halt. You can no longer satisfy your customer requirements. So proactive measures are an absolute requirement.
What should they do to prepare?
I would urge manufacturers and shippers to take what’s essentially a two-pronged approach.
First, you need to segment and identify your critical components, based on how crucial they are to your production operations and the risk associated with their sources, where they’re coming from. After you segment them, you list your top-priority items—the critical components that you absolutely cannot do without. You then split your supply chain into two, so that you have a much more redundant supply chain built for those critical items and then a second supply chain for everything else.
To build redundancy, you establish multiple suppliers and diversify them geographically. You also build in stringent contingency measures, which could include strategic stockpiling, nearshoring, and friendshoring, which is where you store inventory with an ally or in a friend consortium, as well as buying alternative components wherever possible. So all of those measures need to be put in place for the components that you’ve identified as absolutely critical for your production.
What is the second prong?
The second prong is the need to manage increased costs. There’s no getting away from higher costs, right? If you’re holding more inventory, you have higher inventory carrying costs. And if you’re diversifying your supply base, that means you don’t have as much leverage [with individual suppliers]. You’re also going to be managing multiple supply chains, which requires an increase in human capital because you’ll need more people to manage the more complex supply chains that you’re putting in place.
One way to manage costs could be by implementing strategic sourcing programs across the board that are aimed at mitigating some of the expenses. By taking these steps, manufacturers can safeguard their operations against potential disruptions and ensure continuity.
A lot of U.S. companies have been nearshoring to Mexico, which has now become the United States’ leading trade partner. Is that a simple solution for companies looking to reduce their reliance on Asia?
It is one of the solutions. But you won’t be able to replace your Asian supply base immediately—as with semiconductors, it may take a few years to build out that capacity.
So you need to start stockpiling essential components now—particularly if you won’t be able to find alternatives. You want to make sure that you’re holding the right amount of inventory of the components that you absolutely need. So nearshoring is an option, but you need to be careful what you move to Mexico.
Is that because moving production to Mexico will raise your costs compared to sourcing in Asia?
Yes, production costs will be higher compared to a place like Vietnam, where wages are currently lower than in Mexico. It might reduce the logistics cost, but I think there’s still a net increase overall because you’ll have higher expenses for things like regulatory compliance. Plus you’ll have the one-time cost of setting up the facilities.
Ideally, you’ll never have to face these problems we’ve been talking about, but it’s always better to be prepared.
Editor’s note:This article first appeared in the November 2024 issue of our sister publication DC Velocity.
As we look toward 2025, the logistics and transportation industry stands on the cusp of transformation. At the Council of Supply Chain Management Professionals (CSCMP), we’re committed to helping industry leaders navigate these changes with insight and strategy. Here are six trends that we believe will form the competitive landscape of tomorrow.
1. Digital transformation and data integration: Technology continues to reshape every facet of logistics. Advanced analytics, artificial intelligence, and machine learning are becoming increasingly integrated into supply chain operations, driving efficiency, reducing costs, and enabling proactive decision-making.
For companies to succeed, they must invest in technologies that enhance data accuracy and facilitate seamless information sharing. Those that do so will be able to better anticipate disruptions, optimize routes, and improve customer satisfaction.
2. Sustainability: As the global community continues to prioritize environmental responsibility, the logistics sector faces growing pressure to reduce its carbon footprint. The adoption of electric vehicles, alternative fuels, and optimized routes can reduce emissions significantly, and many organizations are setting ambitious targets to lower their environmental impact.
3. Supply chain resilience and flexibility: The capacity to pivot quickly in response to disruptions, whether due to natural disasters, geopolitical tensions, or global pandemics, is no longer a luxury but a necessity. Companies are increasingly adopting flexible supply chain models and focusing on diversification to mitigate risk.
4. Nearshoring and reshoring: Bringing manufacturing closer to home—either by relocating it back to the country of origin (reshoring) or moving it to neighboring regions (nearshoring)—not only enhances supply chain agility but also reduces transportation costs, lowers emissions, and lessens exposure to global disruptions. Companies that embrace these approaches can strengthen their competitive positioning, helping them respond more effectively to fluctuations in demand while maintaining cost efficiency and meeting sustainability goals.
5. Workforce development: The logistics industry is facing a talent shortage, particularly in skilled labor and technology-focused roles. As we advance into a more digitalized landscape, we need a workforce proficient in tech and adaptable to change. Organizations must focus on upskilling and reskilling programs to equip their teams with the necessary knowledge.
6. E-commerce and last-mile solutions: E-commerce growth shows no signs of slowing, and with it comes the challenge of meeting rising consumer expectations for fast, reliable, and sustainable delivery. Last-mile logistics remains one of the most complex and costly segments of the supply chain. Innovative solutions, such as urban microfulfillment centers, autonomous delivery vehicles, and drone deliveries, are paving the way for more efficient last-mile solutions.
Looking Ahead
The future of global logistics and transportation holds both challenges and opportunities. At CSCMP, we are committed to supporting our members through these changes, fostering collaboration and sharing insights to navigate the path forward.
The landscape of 2025 may be unpredictable, but with strategic foresight and a commitment to adaptability, we can shape a prosperous future for logistics and transportation. Together, let’s continue to lead the way forward.
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As I assume the role of Chair of the Board of Directors for the Council of Supply Chain Management Professionals (CSCMP), I fondly reflect on the more than 10 years that I’ve had the privilege of being part of this extraordinary organization. I’ve seen firsthand the impact we have had on individuals, companies, and the entire supply chain profession.
CSCMP’s journey as an organization began back in 1963. It has since grown from a small, passionate community to the world’s premier association for supply chain professionals. Our mission—to connect, educate, and develop supply chain professionals throughout their careers—remains not only relevant, but vital in today’s world.
As we look ahead, the opportunities are vast. What stands out the most to me is simply this:We are stronger together. Every individual brings a unique perspective, and it’s through our collective wisdom and efforts that we will continue to advance the work we do. The road ahead is not one we travel alone. It’s a path we navigate as a community—one united in purpose and direction.
My vision for the year ahead centers around growth—growth in our global reach and, perhaps even more importantly, growth in how we engage and support each other. We have tremendous opportunities for international expansion, especially in Europe, the U.K., Mexico, Central and South America, and Canada. I’m happy to share that we're already seeing progress in our reach to these regions.
I'm incredibly excited about the potential for even more growth ahead. One of the initiatives I am most passionate about is our Centers of Excellence. These centers will provide members the space to engage deeply in key supply chain disciplines. I invite each of you to dive into these areas, share your experiences, and contribute to the innovative solutions we develop together. There will be plenty of opportunity to do so. These centers are not only academic spaces—they are hubs for innovation, where we can share best practices and work together to solve our industry’s biggest challenges.
Education and thought leadership will continue to be at the heart of what we do. By expanding our research capacity, we will offer cutting-edge insights that keep our members at the forefront of industry trends and innovation. Through our platforms, we will create even more opportunities for connection and collaboration—ensuring that every voice is heard. Your insights, curiosity, questions, and engagement will drive the transformation we seek. We all play a part in the advancement of our industry and our profession.
Our impact begins with membership. Expanding collaborations with public, private, and nonprofit sectors will give us new ways to drive progress. In a world where our ecosystem is even more interconnected than ever before, the ability to engage with diverse stakeholders will help us unlock new solutions and truly make a difference on a global scale. None of this would be possible without the strong foundation that has been built over the years by serving our supply chain community. Each of you holds the ability to shape the future of the supply chain, and I can’t wait to see what we will achieve together.