The Future of Supply Chain Technology
by Jaidyn Farar
Supply chain technology is a critical component of a successful supply chain strategy, allowing businesses to automate core processes, overcome challenges like labor shortages, and improve the speed and accuracy of shipments.
What technologies are at the forefront of business leaders’ strategies in 2025? And what place does this tech have in your warehouses and distribution centers? Read on to find out.
What is supply chain technology?
Supply chain technology includes the digital and physical solutions used to automate key logistics processes, boost productivity, and reduce costs. Major benefits of supply chain technology include the following:
- Better visibility. Supply chain technology gives you real-time insights into inventory levels, shipping statuses, and demand patterns so you can make smarter, more proactive decisions.
- Greater resilience. By automating processes and enhancing data accuracy, supply chain technology helps organizations adapt quickly to disruptions and continue to operate when unexpected issues—like severe weather events or labor strikes—arise.
- Lower costs. Technology can significantly reduce operational expenses by streamlining workflows, reducing errors, and optimizing shipping decisions.
- Faster shipping times. With tools like automated order processing and advanced carrier selection, you’ll ensure your orders move faster from distribution center to doorstep.
With all these benefits, it’s no surprise that supply chain leaders are incorporating new technology into their processes; one 2024 report revealed that 55% of leaders are increasing their investment in supply chain technology.
Core technologies driving innovation
Below, you’ll find some of the most popular—and cutting-edge—supply chain technologies out there.
Artificial intelligence (AI)
The term artificial intelligence (AI) refers to computer systems capable of performing tasks that typically require human intelligence, such as decision-making, problem-solving, and pattern recognition.
It seems like every industry has been affected by the recent rise of AI technology. People are eager to try out AI’s capabilities; it was a top-three investment priority for companies in 2023, with 55% of survey respondents saying their company invested in AI.
In supply chain management, AI can be used to analyze massive amounts of data, identify inefficiencies, and automate complex processes. One of its unique benefits is its ability to make accurate predictions based on historical data, helping organizations stay ahead of demand fluctuations.
Use cases for AI in the supply chain:
- Predicting demand trends to optimize inventory levels.
- Enhancing supply chain visibility with real-time tracking and monitoring.
- Identifying risks or bottlenecks to improve overall supply chain resilience.
Internet of things (IoT)
The internet of things (IoT) is a network of interconnected physical devices embedded with sensors and software that let them communicate via the internet. IoT can be used to track assets, monitor environmental conditions (like temperature and humidity levels), and gather real-time insights across various touchpoints.
IoT is used in a variety of industries, and the total number of IoT devices in the world is forecast to grow from 15.9 billion in 2023 to over 32.1 billion in 2030. One survey found that 55% of supply chain and logistics companies have deployed between 1,000 and 10,000 IoT devices, while 38% have deployed between 500 and 1,000.
Use cases for IoT in the supply chain:
- Tracking shipments in real time with GPS-enabled sensors.
- Monitoring shipping conditions for sensitive products like pharmaceuticals or perishables.
- Automating asset management with RFID tags and smart inventory systems.
Blockchain
Blockchain is a decentralized, digital ledger that securely records transactions of goods, information, and money. Because records can’t be changed once entered, blockchain ensures that data is transparent, traceable, and tamper-proof.
When it comes to the supply chain, blockchain is used to create a trustworthy, shared record of transactions and asset movements. This makes it easier to verify the origin, authenticity, and status of goods.
Use cases for blockchain in the supply chain:
- Verifying the authenticity and origin of raw materials.
- Mitigating fraud by providing an immutable record of transactions.
- Managing recalls efficiently by pinpointing affected batches or products.
Cloud computing
Cloud computing is the delivery of computing services—such as storage, software, and processing power—over the internet.
As opposed to on-premise solutions, which are hosted on a company’s own hardware, cloud-based technology allows businesses to access data on demand without maintaining physical infrastructure.
Cloud-based supply chain solutions are becoming more popular because they allow for seamless collaboration, real-time data sharing, and greater scalability. You can find cloud-based technology for many supply chain tasks, including inventory management, demand forecasting, and shipping.
Use cases for cloud computing in the supply chain:
- Centralizing inventory management with cloud-based warehouse management systems (WMS).
- Enabling real-time collaboration between suppliers, manufacturers, and retailers.
- Integrating multiple shipping carriers for rate shopping and label creation.
Virtual reality (VR) and augmented reality (AR)
Virtual reality (VR) is a technology that creates immersive, computer-generated environments where users can interact with simulated surroundings. In supply chain management, VR is often used for training (see how FedEx is training their employees with VR), warehouse planning, and prototyping. It provides a risk-free way to test new layouts, processes, or equipment.
Use cases for VR in the supply chain:
- Training warehouse staff in safe handling practices.
- Designing and testing warehouse layouts in a virtual space before physical implementation.
- Conducting virtual walkthroughs of facilities to identify inefficiencies.
While VR allows users to exist in fully digital environments, augmented reality (AR) overlays digital information onto the physical world. This lets users interact with virtual elements while remaining present in their environment.
Use cases for AR in the supply chain:
- Guiding warehouse workers through picking and packing tasks with smart glasses or handheld devices.
- Helping drivers with optimized navigation and delivery routes.
- Streamlining inventory audits with AR-driven scanning and data visualization.
3D printing
3D printing, also known as additive manufacturing, is a process that creates three-dimensional objects layer by layer using materials like plastic, metal, concrete, resin, and more. It can be used to produce prototypes, spare parts, and even finished goods on demand, reducing the need for extensive inventory and long lead times.
Use cases for 3D printing in the supply chain:
- Manufacturing spare parts to reduce inventory storage costs.
- Creating customized packaging or product components.
- Prototyping new products quickly for faster development cycles.
Autonomous vehicles (AVs)
Autonomous vehicles (AVs) are self-driving transportation systems—such as trucks, delivery vans, and drones—that use sensors, AI, and navigation technology to travel without human intervention.
While self-driving trucks haven’t become widespread yet, several transportation companies (such as DHL) are experimenting with them for long-haul routes. Other businesses, like Walmart, have begun using drones to streamline last-mile shipping.
AVs reduce labor costs, improve delivery efficiency, and allow businesses to operate around the clock without needing to worry about driver fatigue.
Use cases for AVs in the supply chain:
- Automating long-haul freight transportation with self-driving trucks.
- Enabling more efficient last-mile deliveries using delivery robots or drones.
- Improving safety in hazardous environments, such as chemical or mining supply chains, with unmanned vehicles.
Data and analytics
Today’s businesses collect massive amounts of data—information on everything from transportation times to supplier performance to shipping costs. Analytics involves organizing, processing, and interpreting this data to generate actionable insights and support decision-making.
Data and analytics technology is an important tool for monitoring performance and uncovering inefficiencies. With the right technology, businesses can identify trends and patterns that might otherwise go unnoticed, giving them time to respond quickly to potential delays or disruptions.
Use cases for data and analytics in the supply chain:
- Forecasting demand to optimize inventory levels and reduce overstock or stockouts.
- Analyzing carrier performance to improve delivery times and reliability.
- Using predictive analytics to mitigate risks, such as supplier delays or disruptions.
The future of supply chain technology: 3 trends in 2025
As supply chains continue to evolve—and the global market grows more complex—businesses will need to adopt new technologies to meet customer expectations.
In 2025, three key trends will drive the future of supply chain tech: digitization, resilience and risk management, and sustainability.
Digitization
Digitizing the supply chain involves integrating digital tools and technologies to streamline operations, improve decision-making, and enhance customer experience. Technologies like AI, IoT, and cloud computing will be pivotal in this transformation.
Digitization promotes more efficient data collection, analysis, and decision-making.
It’s the first step in some of the most meaningful supply chain initiatives you can implement, including sustainability measures.
“You can't go on a sustainability journey unless you've started on a digitization effort. You have to be able to measure [data] before you can manage it, and to be able to measure it properly, it needs to be in a digital format.” — Tom Raftery, 2025 Supply Chain Sustainability Trends
Resilience and risk management
The COVID-19 pandemic revealed the flaws of global supply chains in 2020. Now that the pandemic has ended, organizations are still hyper-aware of the damage that unexpected disruptions can cause to supply chains. As a result, resilience and risk management will continue to be a top priority in 2025.
Technologies like blockchain, predictive analytics, and robotics will play a crucial role in creating more adaptive, secure, and transparent supply chains.
“Global supply chains are so dynamic and flexible. … We're much more savvy—information is much more available, a lot of advanced information. … People have been burnt by the pandemic so much, we still have our antennas out, and we're starting to be more reactive, which makes us much more nimble.” — Chris Caplice, Supply Chain Trends in 2025
Sustainability
Faced with natural disasters across the world, consumers are increasingly prioritizing sustainable choices in an attempt to slow climate change. And they expect the businesses they purchase from to follow suit.
In 2025, sustainability will be woven into supply chain strategies, from sourcing materials to optimizing transportation routes.
Your company can prepare by incorporating sustainability goals into your overall strategy, investing in green technologies, and making supply chain practices more transparent through tracking and reporting tools.
“For a lot of the sustainability reporting … you need to be able to report the emissions coming from your suppliers. And that gets rather tricky because it's third-party information. … It [involves] taking in enormous amounts of data. And what we'll start to see is AI helping organizations to work with that data that's coming in.” — Tom Raftery, 2025 Supply Chain Sustainability Trends
Shipping technology for the future
No matter what technology you choose to invest in, it’s essential to make sure it’s able to scale with your business. For example, your shipping software should be able to keep up with growing order volumes, running quickly and reliably even during the busiest times.
EasyPost Enterprise Shipping is built with the future in mind. With both on-premise and cloud-enabled solutions available, the platform adapts to every business need. With EasyPost Enterprise, you can take advantage of pre-built integrations with industry-standard tools, customize your shipping with configurable business rules, access over 100 carriers, and more.