Leaders: Top 3 Supply Chain Challenges Persist in 2024 

There is rarely a dull moment for supply chain strategists. Advances in AI, analytics, and other technology realms are driving disruption, new risks, and critical shifts. Yet the top supply chain challenges remain surprisingly consistent year over year, as reported in a recent study of business leaders by TrueCommerce. 

What are supply chain leaders’ biggest challenges and what successful strategies are planned for addressing them? In this article I’ll share a business-level overview with statistics and key insights. 

What are the top 3 ongoing supply chain challenges? 

Organizations across industries face considerable business struggles, from cybersecurity risks and compliance errors to inflation to shipping bottlenecks. Yet the three most critical supply chain challenges remain consistent year over year—changing in rank but maintaining their predominance.  

The three biggest issues in the minds of supply chain leaders in 2023 and continuing through 2024 may surprise you. They are: 

1. Cost control 

2. Acquiring new customers 

3. Attracting and retaining talent 

As illustrated in the report data, each of these share a near-equal weight in importance: 

	Top Challenge in 2023	Expected Top Challenge in 2024
Cost control	37%	35%
Acquiring new customers	34%	30%
Attracting/retaining talent	33%	35%

Following these primary concerns, other major consideration for supply chain leaders include: 

	2023 Ranking	2024 Ranking
Cyberthreats	23%	29%
Regulatory compliance	27%	26%
Risk management	21%	29%
Scalability	25%	24%

Why do these challenges persist? 

Is it surprising that these top challenges persist? In my view, this is to be expected despite the rapid pace of industry change. 

There’s no doubt that businesses are trying to advance—become faster, more efficient, and more accurate. But to do these things successfully, they need to control costs, gain new customers, and attract and retain talent. These efforts are ongoing because they are critical to overall operations. 

While key challenges may continue, approaches to tackling them are changing. For example, digital transformation enables more supply chain businesses to acquire new customers through online and omnichannel experiences. Improved data analytics offer fresh insights into customer behavior and preferences, supporting personalization efforts.  

Many organizations are used to selling in a B2B model. Coming out of the pandemic, things shifted to a B2C model for many businesses, where new customers became end-users. Not all companies are equipped to market and sell direct to consumer or even fulfill orders direct to consumer.  
 
Competing priorities can also slow ongoing change efforts. If a company functions “well enough” in one area, it may channel scarce resources to other issues.  
 
Ongoing challenges can also compound one another. For example, talent acquisition is a top business concern, and difficulties filling positions may cause a lack of willingness to invest in process improvements. Companies are trying to operate lean at a time when it’s hard to find the right people with the right skills. It also requires a lot of internal resources to implement the needed changes to get long-term relief. It can be hard to prioritize short-term pain for long-term gain. 

What strategies can help solve ongoing supply chain issues? 

The fact that survey respondents identified customer acquisition as a top challenge in both 2023 and 2024 could indicate slow progress with the transition from B2B to B2C relationships. Businesses that require more effective approaches to clearing this hurdle can benefit from collaboration with experts to help them make the best choices. 
 
Companies need to invest in the right technology to be successful, for instance. The right partner can make a big difference in that regard. 

Recommended strategies to overcome ongoing supply chain challenges include: 

Cost Control: 

• Leverage technology to automate administrative tasks like order processing, invoicing, and inventory management to eliminate manual entry errors and cut operating costs. 
• Expand supply chain visibility to better predict demand, helping to reduce holding and shortage costs.  
• Implement Vendor Managed Inventory (VMI) to optimize procurement, allowing vendors to manage inventory levels and reduce overstock and understock scenarios.  
• Take advantage of bulk purchasing and consolidated shipments to benefit from volume discounts and reduced shipping costs. 
• Automate payments to reduce turnaround time and costs associated with manual payment processing, thus improving cash flow management. 

New Customer Acquisition: 

• Improve service quality to enhance customer experience and brand reputation. For suppliers, this can mean aligning with industry standards (i.e., EDI) to attract larger customers that mandate these capabilities for trading partners.   
• Integrate with B2B marketplaces to expand market reach and engage with new customers.  
• Give customers the ability to track order status in real-time—increasingly a B2C “must have.”  
• Analyze customer data to attract prospects through tailored marketing campaigns targeting specific segments, regions, and demographics. 

Attracting New Talent: 

• Modernize operations and create a tech-forward environment that will appeal to the most educated and desirable talent while building a foundation to attract younger workforce entrants. 
• Offer training programs on emerging technologies to provide growth opportunities for employees, thus promoting job satisfaction and company loyalty.   
• Enhance work-life balance with remote work options. Many job applicants see this as non-negotiable—and 95% of your current workforce probably agrees.  
• Expand your company’s commitment to innovation and sustainability to attract employees who value corporate social responsibility. 

What’s next? 

Supply chain leaders face persistent challenges but have a range of proven strategies at their disposal to overcome them. Adapting to evolving market conditions requires companies to realign current business processes while becoming faster and more efficient, accurate, and in tune with customer needs.  

To gain all the latest insights on supply chain challenges and solutions, download the Supply Chain Trends Report 2024 today.