Top trends that will dominate the supply chain in 2021

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2020 has been a bad year for every industry, especially those where person-to-person contact is essential. The supply chain industry involves the close collaboration of business stakeholders — including companies, vendors, suppliers, distributors, wholesalers, retailers, and the end-user — which involves a significant health risk. The global lockdown has also affected the movement of goods. Things won’t fall back on track until an effective vaccine is available. The only alternative is maximizing the use of technology.

This article will shed light on the top supply chain trends in 2021:

1. Supply Chain control towers are coming

Visibility plays a significant role in every business. But it isn’t enough. You also need to come up with an effective solution. Supply chain control towers use AI and advanced algorithms to identify potential challenges (predictive analytics) and suggest resolutions for the same (prescriptive analytics) automatically based on real-time data. You will need these “anticipate, sense, and respond” abilities to operate optimally in 2021. 

2. Omnichannel presence will increase

The global pandemic has been the toughest for companies that relied solely on their brick and mortar stores. On the other hand, businesses operating through multiple platforms — retail, e-commerce, direct-to-door — haven’t had to face many problems. Supply chain companies that focus on consolidating demand across various channels will maximize their revenues and cut operational costs. Others will dwindle into oblivion.

Also Read: 5 ways to create omnichannel customer engagement

3. Information delays will diminish

2020 taught supply chain businesses the significance of sharing business-critical information at the earliest. Countless companies shut down because of disruptions in their supply networks that diminished their ability to provide an adequate response to the pandemic. 2021 will see a significant rise in the installation of real-time IoT systems that will reduce time lags and update companies about supply chain challenges. 

4. Direct-to-Consumer will flourish

The Direct-to-Consumer method has several benefits:

a. By removing intermediaries, supply chain companies can directly sell to end-users at retail prices and maximize their profits.

b. Intermediaries often dilute the brand’s reputation. Using the direct-to-consumer model of selling, supply chain companies can directly interact with consumers and increase the final product’s price.

c. Supply chain companies can better understand the customer’s needs, wants, and ambitions and deliver accordingly.

d. The conventional market route demands respect for the contract’s terms and conditions signed between different parties. It can sometimes cause significant financial loss. By reaching the customer directly, supply chain companies can escape from getting into such contracts.

Also Read: 4 trends that will dominate manufacturing in 2021

5. Constant monitoring of the supply-demand ratio

The supply chain companies that didn’t rely on software to monitor the supply and demand ratio have been devastated by the pandemic. In 2021, companies will implement software solutions for planning the following:

a. Sourcing of raw materials.

b. Monitoring the inventory levels and placing orders automatically when they go below the set threshold.

c. Selecting an appropriate vendor, distributor, and supplier for local and global platforms. 

d. Reallocating products in real-time.

e. Forecasting demand and supply ratio based on historical data.

Global demand-supply matching (GDSM) will provide a competitive edge to supply chain companies in 2021. It will allow them to use resources judiciously that will help maximize the profit and cut operational expenses. 


2021 has been a bad year for businesses of all kinds, especially for supply chain companies that cannot function optimally without coming in close contact with people. Some companies have begun implementing technology to boost their operations, while others are lagging. Those who fail to adapt to the new normal will have to either close their operations or see a significant chunk of their customer base moving to their competitors. 

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

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