While 2024 was a more stable year for the global supply chain, it wasn’t without its challenges. From Houthi attacks in the Red Sea to port strikes in the U.S., IT buyers should know by now that they always need to be prepared for unpredictable supply issues.
The IT supply chain will continue to be hugely volatile, but being aware of the ups and downs can make a huge difference as it will help buyers anticipate possible hurdles before they arrive. Here, Ian shares some of the market movements and trends that have the potential to impact IT buyers as we enter 2025:
Supply chain movements to watch out for – There are always a number of geopolitical and social factors that can impact supply chains. Trump’s return to the White House and the escalation of tariffs is one such event. In the short-term, manufacturers and retailers may attempt to stockpile goods – while this will go some way in protecting profit margins, it’s only a matter of time before companies will have to make a call on whether to absorb additional costs or pass them on to the end user.
Buyers should also be aware of factory closures during Chinese New Year which arrive even earlier on January 29th. Companies have had to scramble to get orders in before the holiday shutdown and this surge in demand has already created constriction with freight rates increasing by up to 30% in November.
Data management – a key focus in 2025 will be better data management with procurement departments as companies look to analyse spend. In part, this will help to reduce costs but it can also help to track supply chain purchases from both an ethical and sustainability perspective. For years, procurement teams have been forced to rely on rudimentary practices, such as Excel sheets, to record purchases. This approach is liable to human error and can lead to gaps and inconsistencies when organisations come back to examine spend. To tackle this, we’re seeing the adoption of digital procurement solutions that are providing access to previously unavailable data or bringing order to unstructured data sets. This is helping teams to more accurately analyse past spend, predict future costs and monitor their supply chain.
Sustainable IT – Organisations are facing increased pressure to demonstrate responsibility through their supply chain. As well as helping companies monitor the ethicality of its suppliers, we’ll also see greater consideration given to the equipment itself and a surge in demand for re-manufactured devices. Unlike a refurbished device where the odd component is repaired or replaced, re-manufactured devices involve taking the whole product apart and putting it back together again. This level of care and attention means they are like new – but with the added benefit of being more cost-effective and environmentally friendly.
By staying in regular conversation with suppliers, procurement teams can stay one step ahead of anything the supply chain may throw at them and feel confident that they are taking a proactive approach to purchasing in 2025.