Supply Chain Performance
Supply Chain Performance

What are the best supply chain optimisation strategies for a strong competitive edge and top performance? 

Between rising costs, customer expectations and ESG challenges, optimizing the supply chain is now a strategic imperative.

On April 23, 2025

This year, supply chains are facing a perfect storm of challenges: rising operational costs, increasing complexity, and relentless pressure for faster, more sustainable deliveries. To stay competitive, businesses must rethink their approach to supply chain management and balance performance and sustainability at all times.

Are the two compatible? How can companies ensure their operations are as efficient as possible, while keeping their carbon footprint low?

In this article, we’ll discuss some of the key supply chain optimisation strategies, drawing on decades of experience in logistics. We’ve explored all those questions in more depth in our upcoming white paper, “The performance and sustainability paradox in supply chains: can we have it all?” to equip businesses with the right data and help them meet their sustainability and performance objectives. 

What are the key challenges for modern supply chains? 

In 2025 and beyond, pressures on modern supply chains will likely continue to mount – customers are demanding cheaper, faster, and more sustainable deliveries, while operational costs are increasing, on a backdrop of an increasingly complex network of just in time deliveries and unpredictability due to geopolitical tensions and climate crises. 

Cost pressures

Labor shortages, combined with fluctuations in fuel prices and increased competition in the logistics sector are pushing operational and transportation expenses upwards, and will likely continue to do so in the next few years. At the same time, customers – both retailers and end customers – are expecting logistics costs to stay low and predictable. 

This motivates businesses to seek out opportunities for the continuous improvement and optimisation of their operations, including warehouse management systems, automation, and data analytics. And, even though sustainability is gaining traction, the primary motivator for adopting sustainable initiatives remains cost savings and efficiency gains, for 56% of respondents, according to our research. 

Growing complexity

Many supply chains now operate as multi-layered networks that require precise synchronisation. 

These systems rely heavily on just-in-time (JIT) deliveries, which, while cost-efficient, are vulnerable to disruptions. A delay in one segment of the supply chain can create ripple effects throughout its entirety, leading to performance degradation.

Global disruptions

With the new US government, US trade policies will likely change, potentially to a significant extent. Trade tensions between China and the US are likely to persist in 2025 and over the next couple of years, according to the International Trade Council, which inevitably impacts global trade flows and logistics. 

At the same time, instability in the Middle East and Eastern Europe are also contributing factors to potential global disruptions. This leads to unpredictability for all parties involved in global trade and logistics. 

A high demand for more sustainable solutions

For logistics companies, pressure to adopt more sustainable practices comes from multiple sides – governments, consumers, and partners alike. This makes the reduction of carbon footprint an important goal for the entire industry – but not at the expense of performance. 

According to our research, 94% of supply chain professionals believe that sustainability and financial performance can coexist successfully and complement each other. But, while many companies are committing to net-zero emissions, only 36% of respondents had a comprehensive roadmap in place to reach that goal. 

Proven strategies for supply chain optimisation

So, what supply chain optimisation strategies can businesses adopt to improve their supply chains and make them more sustainable, performant, and resilient? Below, we’re exploring a few of the main approaches to tackling the challenges of supply chain and warehouse management in the next few years. 

Omnichannel logistics

E-commerce is expected to grow by nearly 8% annually in the period from 2025 to 2029; in this context, omnichannel sales are redefining the world of retail, where online and offline experiences now blend together. As McKinsey & Company puts it, an omnichannel presence is no longer considered cutting-edge innovation but is instead a requirement for survival for retail brands. 

Sustainable omnichannel logistics, which is central to FM Logistic’s strategy, are a key piece of the puzzle that enables companies to build robust and efficient supply chains with multiple delivery solutions, stay agile in peak season, and keep costs low – while offering a frictionless and memorable experience to their customers. 

Supply chain analytics, optimisation and automation

Modern supply chain management relies on data analytics to help businesses forecast demand, track performance in real time, and identify issues before they impact their customers and partners. Automation, on the other hand, alleviates the burden of repetitive tasks, reduces human error, and, more importantly, drives supply chain efficiency. 

In times of uncertainty, the optimisation of supply chains becomes even more critical, with the help of strategic partners. Disruption is unpredictable by definition – so it is crucial to be prepared. This helps businesses ensure they are always able to deliver the right products, to the right place, at the right time. 

Collaboration and partnerships

Strong partnerships are essential for building adaptable, reliable, and highly competitive supply chains – and their lack can lead to many missed opportunities and delays. 

Our extensive network of local and global suppliers and partners has enabled us to build networks that can quickly respond to challenges and maintain consistent operations – and always find the most efficient solutions for our customers in terms of costs, time, and ecological footprint. 

Improve the resilience of supply chains with the right optimisation strategies

To stay prepared for what comes next and build a resilient supply chain, businesses need to implement the right strategies – for this, omnichannel logistics, advanced analytics, and strong collaborative partnerships enable them to stay competitive, reduce costs and delivery times, and meet ESG objectives. 

For a deeper dive into the balance between performance and sustainability, download our white paper, “The performance and sustainability paradox in supply chains: can we have it all?”.

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