Supply chain evolution: From disruption to modernisation

According to Salesforce’s “Trends in Manufacturing” report, which surveyed over 800 industry decision-makers worldwide, 67% have faced supply chain disruptions since 2020—and 59% say those challenges persist to some extent today. However, leaders are not standing still. This new reality has sparked widespread transformation, with 83% of manufacturers actively modernising their supply chains to become leaner, smarter, and more sustainable.

Yet, the effectiveness of these initiatives varies considerably. Some companies are building resilience, while others are just trying to stay afloat and address ongoing issues. For most manufacturers, the shift from crisis response to strategic modernisation is one of the industry’s most defining moments.

The current state: persistent challenges amid recovery

More than half of the manufacturing leaders surveyed continue to experience supply chain disruptions. These persistent challenges have become the “new normal,” shifting from acute shortages to ongoing unpredictability in lead times, reliability, and costs.

Take Anne, a production manager at a mid-sized automotive parts manufacturer. A few years ago, she was dealing with complete supplier shutdowns. Today, her biggest headache is managing the unpredictable delivery windows from her tier-two suppliers—parts that used to arrive within a two-day window now have a seven-day variance. It’s manageable, but it requires completely different planning approaches.

While most manufacturers are taking steps to modernise and improve their operations, the results tell a mixed story. Some enterprises have achieved tangible outcomes, while others are still struggling to make progress. Let’s see what the numbers say:

• 51% agree that their initiatives have been “very effective” at improving efficiency.

• 50% report significant improvements in data and analytics capabilities.

• 49% have seen meaningful progress in quality assurance.

• 48% point to enhanced business agility and stronger cross-functional collaboration.
• Only 44% feel confident that their efforts have reduced the risk of future supply chain disruptions.

This last statistic is particularly telling—despite significant investment, many modernisation projects are solving yesterday’s problems without addressing tomorrow’s vulnerabilities. For manufacturers, the challenge lies in shifting from tactical quick wins to building long-term resilience.

Onshoring and nearshoring: the geographic dimension

One of the most significant responses to recent supply chain challenges has been the reconsideration of global sourcing strategies. According to Salesforce, manufacturers are moving operations closer to the end customer to make their supply chains more responsive and reliable.

• 49% of U.S. manufacturers have already implemented onshoring initiatives.

• 43% are pursuing nearshoring strategies to bring production closer to demand.

• 61% expect more manufacturing to happen domestically over the next year.

• 44% anticipate sourcing more materials from within the U.S.

Proximity can be a strategic advantage, reducing delivery time and logistics costs. For some manufacturers, such as those in the chemical industry, it translates into better control over quality and regulatory compliance. Just think about it: quality control gets easier when your suppliers are a short drive away rather than halfway around the world.

This approach also shortens lead times, enabling manufacturers to respond faster to market changes. Plus, it makes it easier to align with governmental policies and incentives, including those related to sustainability and carbon reduction.

Imagine a mid-sized chemical manufacturer shifting part of its production closer to key markets in Eastern Europe. Initially, the goal is to avoid overseas shipping delays and rising freight costs, but within months, the company sees broader benefits: improved supply chain visibility, stronger customer relationships, and access to regional sustainability incentives.

Additionally, producing closer to home often means fewer regulatory hurdles, reduced geopolitical risk, and clearer compliance standards. This aspect is especially important for industries dealing with hazardous materials.

Another compelling insight from the report is that manufacturing companies are more confident about relocating production than sourcing raw materials. 61% of respondents said they expect increased domestic manufacturing, whereas only 44% anticipate more domestic material sourcing—and it’s easy to see why.

Certain raw materials and components remain geographically constrained. For example, you can move where you assemble engines, but you can’t relocate rare earth minerals.

This gap marks the next frontier: localising what’s feasible while developing smarter risk strategies for what’s not.

Technology’s central role in supply chain modernisation

Technology represents the cornerstone of most initiatives aimed at supply chain modernisation, but its practical applications vary based on company size and industry focus.

For example, advanced analytics and artificial intelligence (AI) are transforming supply chain decision-making. Manufacturers of all sizes are using these tools for sophisticated demand forecasting and inventory optimisation.

According to the “Trends in Manufacturing” report, 50% of enterprises have achieved “very effective” outcomes from enhanced data and analytics capabilities. Many of these gains aren’t coming from massive IT overhauls. Instead, companies are tapping into cloud-based platforms like Salesforce, which deliver powerful insights without the need for complex infrastructure.

Other technologies gaining traction in the manufacturing sector include:

• IoT and connected devices provide unprecedented visibility into inventory movements, equipment performance, and product conditions. For example, smart sensors enable real-time tracking and monitoring that was impossible with previous generations of supply chain technology.

  Some manufacturers use such devices to monitor production equipment. Not only does the system alert them when a machine is about to fail, but it also predicts optimal maintenance windows based on production schedules and parts availability. This approach can significantly reduce unplanned downtime and extend equipment lifespan.

• Blockchain and distributed ledger technologies are helping manufacturers tackle long-standing challenges around traceability and transparency. They’re especially valuable in industries with complex supplier networks or tight regulatory oversight, such as food and beverage, pharmaceuticals, automotive, and aerospace.

For instance, pharma companies are leveraging blockchain for drug authentication and supply chain integrity. This technology empowers them to combat counterfeit medications and protect patient safety. Aerospace and defence contractors, on the other hand, use blockchain to maintain detailed audit trails of materials and components.

• Cloud-based supply chain platforms are replacing legacy systems, bringing greater flexibility, scalability, and collaboration to the table. They’re gradually becoming the digital backbone of modern supply chains, connecting everything from supplier portals to customer service.

  For example, Salesforce Manufacturing Cloud enables manufacturers to connect data from ERPs, supplier systems, and logistics providers—and integrate it into customer support and sales operations. Simply put, it acts as a central command centre, ensuring visibility across your entire network.

Despite these technological advancements, many manufacturers still struggle with data quality, integration, and accessibility, which are fundamental prerequisites for more advanced supply chain capabilities. If your data foundation is flawed, the insights generated are unreliable and, in some cases, dangerously misleading.

Sustainability: the emerging supply chain imperative

Sustainability is no longer just a “nice to have” but a core business imperative in the manufacturing sector and beyond. Over the past few years, it has emerged as a critical component of supply chain transformation, creating new opportunities to improve operations and drive profitability.

As Salesforce notes, a growing number of manufacturers are embracing more sustainable business models. 82% of respondents have implemented decarbonisation or emission reduction initiatives, and 81% say these efforts are leadership priorities.

The sustainability imperative is especially pronounced in regions like the Nordics, Japan, and France, where environmental considerations rank among the top business challenges. It also represents a strategic priority for companies in agricultural, chemical, and material products, shifting from a peripheral concern to a core business driver.

Across most industries, environmental considerations now rank among the top five growth challenges for manufacturers. This focus on sustainability is fuelled by a mix of external pressures and internal priorities, like:

• Regulatory requirements and reporting mandates

• Customer and investor expectations

• Cost reduction opportunities through efficiency improvements

• Risk mitigation related to future carbon pricing or restrictions

• Competitive differentiation in increasingly environmentally conscious markets

For example, a building materials manufacturer may replace energy-intensive processes with lower-carbon alternatives to meet regulations and cut costs. A packaging producer might redesign its products with circularity in mind, reducing waste and creating new revenue streams by repurposing recycled materials.

Given these factors, sustainability is becoming the lens through which manufacturers evaluate supply chain decisions, from daily operations to long-term partnerships.

Practical steps to building tomorrow’s supply chain

Understanding and maintaining the product and assets lifecycle data is essential for future business success. For manufacturers seeking to build more resilient, efficient, and sustainable supply chains, the report points to several key strategic priorities:

Make data a strategic asset

Supply chain success depends on data quality, not gut instinct. If your data is inaccurate, inconsistent, or incomplete, everything that follows will be flawed. With that in mind, manufacturing leaders must clean up and integrate their data to ensure predictive analytics and scenario modelling deliver meaningful results.

From there, visibility must go beyond the supply chain team. Sales, operations, finance, and other departments all need to be looking at the same numbers if you want a truly connected view of what’s happening. That’s where predictive analytics comes in, empowering teams to move from reactive to proactive.

And, with scenario planning, you’re no longer caught off guard. Whether it’s a port strike, a raw material shortage, or a sudden spike in orders, you know how to respond with confidence.

Balance resilience and efficiency

Running too lean can lead to resource scarcity, leaving manufacturers exposed. But building endless buffers isn’t the answer either, as it can quickly erode margins. The sweet spot lies somewhere in between, and it requires balancing four key factors:

• Geographic diversification of suppliers and manufacturing locations to mitigate regional disruptions.

• Strategic inventory buffers at critical points in the supply chain without excessive carrying costs.

• Supplier relationship depth with key partners while maintaining appropriate alternatives.

• Technology investment that enhances both resilience and efficiency simultaneously.

These factors take different forms depending on the industry, product mix, customer base, and other aspects. However, supply chains and ecosystems are more dynamic than ever before.

For instance, geographic diversification might involve maintaining primary suppliers in one region with backups elsewhere or spreading production across regions. Strategic inventory buffers might mean weeks of raw material for a chemical company, but just a few days of finished goods for a fast-moving consumer brand.

Embrace sustainability as an opportunity, not a constraint

According to Bain & Company’s 2024 survey, 36% of B2B buyers would walk away from suppliers that fail to meet sustainability expectations. While the majority of suppliers (85%) incorporate sustainability into their products and services, only 53% of corporate customers believe those offerings truly align with their needs.

Leading manufacturers acknowledge these aspects and treat sustainability not merely as a compliance requirement but as a competitive differentiator. That’s why they engage in practices like:

• Measuring carbon footprint across the entire supply chain to establish a baseline for improvement and track progress over time.

• Collaborating with suppliers to address Scope 3 emissions and broader sustainability issues.

• Implementing circular economy initiatives to reduce waste and create new revenue streams through recycled or repurposed materials.

• Integrating sustainability metrics into core supply chain performance indicators to ensure environmental goals are embedded in operational decision-making.

For example, a packaging manufacturer that shifts to recyclable materials doesn’t just meet compliance requirements. It can also win more business from brands under pressure to prove their eco-credentials.

Similarly, when a chemical producer invests in cleaner energy sources, it not only reduces emissions but also lowers long-term energy costs. In this case, sustainability becomes both a regulatory advantage and a profitability driver.

Build collaborative ecosystem capabilities

Tomorrow’s supply chains will be increasingly interconnected and collaborative, meaning that manufacturers should focus on:

• Enhancing visibility across multi-tier supplier networks to improve transparency, risk management, and responsiveness.

• Engaging in collaborative planning with key suppliers and customers to align inventory management, forecasts, and production schedules.

• Launching joint innovation initiatives that address shared supply chain challenges and accelerate problem-solving.

• Adopting standardised data exchange protocols to enable seamless, real-time information sharing across partners and platforms.

Think of an automotive OEM that openly shares demand forecasts with both Tier 1 and Tier 2 suppliers. This level of transparency helps prevent costly surprises by enabling the entire network to adjust in sync, keeping production lines moving and customer commitments on track.

The takeaway here is that strong supply chains don’t run in isolation. Instead, they operate as interconnected systems where collaboration, transparency, and agility drive resilience.

From reactive to proactive supply chain management

Now is the time for manufacturers to rethink their supply chains, not just to build resilience, but to thrive and stay competitive. The most successful ones are already making the shift, designing supply chains that are agile, data-driven, sustainable, and collaborative. And this transformation is reshaping the industry.

The journey to supply chain excellence is ongoing, and the results may take years to materialise. That’s one reason why only 44% of manufacturers believe their modernisation initiatives have been “very effective” at reducing future disruption risks.

Yet, the direction is unmistakable: the manufacturing supply chain is evolving from a primarily operational function to a strategic differentiator—one that directly impacts competitive positioning and business outcomes.

Your transformation journey starts with the right foundation

Fluido, a leading Salesforce Summit Consulting Partner in Europe, can help you lay the foundation for supply chain success. Our experts can set up, configure, and customise Salesforce Manufacturing Cloud and related solutions, giving you real-time visibility across the entire value chain, from demand forecasting to supplier relationships.

Leading enterprises like Wärtsilä, Wilhelmsen, and Are leveraged Fluido’s expertise to optimise their operations, and the payoff has been clear. Think increased efficiency, happier customers, and more accurate forecasts, along with stronger collaboration across their ecosystems.

At Fluido, we’re on a mission to revolutionise manufacturing with tailored Salesforce solutions. Our digital transformation initiatives empower businesses to build supply chains that don’t just withstand disruption but excel through agility, responsiveness, and lasting value.

Ready to take your manufacturing operations to the next level? Let’s talk about your goals and explore how Fluido can help you thrive in today’s competitive market.

Not quite ready to make a decision? Download our free guide, “Accelerate Your Digital Transformation in Manufacturing,” and discover what you can do to future-proof your business.