5 Key Supply Chain and Commerce Trends to Watch

Written by Raghav Sibal, Managing Director ANZ, Manhattan Associates

The landscape of supply chain and commerce continues to evolve at an unprecedented pace. Rapid technological advancements, shifting consumer behaviour, and geopolitical tensions are forcing businesses to adapt to a world of continuous change. For supply chain and eCommerce professionals, the task of staying ahead of these trends is not just about anticipating the next big thing; it’s about building agility and resilience into business models that can withstand uncertainty while optimising customer experience and operational efficiency.

At Manhattan Associates, we’ve been closely tracking these developments and have identified five key trends we believe will shape the future of the supply chain and eCommerce sectors.

1. The Rise of GenAI Chatbots: Revolutionising Customer Interaction

Traditional chatbots are quickly becoming a thing of the past. In the next year, a new wave of artificial intelligence, GenAI, will replace outdated, rule-based bots with sophisticated, intelligent chat systems capable of handling over 50% of customer inquiries. These advanced chatbots won’t just answer basic questions; they will be able to resolve complex issues, access detailed purchase histories, and even anticipate customer needs.

The result is a dramatic shift in how businesses engage with consumers. GenAI chatbots like Manhattan Maven will free up customer service agents to focus on higher-value interactions, such as personalised consultations and complex issues like damaged, mis-shipped, lost items, price matches and answer pick up and return questions.  This creates a hybrid customer service model where AI handles routine queries, and human agents provide the empathy and personalised attention that builds strong customer relationships. As a result, customer service costs will decrease, while overall customer experience will improve, leading to more satisfied customers and a more efficient workforce.

2. Hyper-Personalisation: AI’s Role in Customising Consumer Experiences

Gone are the days of one-size-fits-all recommendations. In the coming year, AI-driven hyper-personalisation will dominate the retail space, thanks to more advanced AI companions capable of learning from past interactions. These systems will remember customer preferences such as size, colour, and style, and suggest products based on individual shopping habits and browsing history.

This hyper-personalised experience will not only improve the overall shopping journey but will also drive higher customer lifetime value. Retailers will be able to target customers with relevant upsells and cross-sells, ultimately driving more conversions. AI-powered personalisation allows businesses to meet consumer expectations at an unprecedented level of precision, delivering relevant recommendations and timely offers that feel genuinely tailored to the individual.

3. Reverse Logistics: A Cost Centre Becomes a Strategic Advantage

In 2025, reverse logistics—handling the return of goods—is set to shift from a cost centre into a strategic advantage. Consumers are becoming more aware of the costs associated with returns, and many retailers will begin charging return fees to mitigate this growing expense. As online shopping continues to surge, the impact of returns on margins is more significant than ever, and businesses will need to rethink how they manage this process.

The introduction of return fees will encourage more thoughtful shopping behaviour, as consumers weigh the cost of returns against the value of the product. Retailers will be forced to improve product descriptions, implement better sizing guides, and create systems that better predict return likelihood. This shift will not only help reduce return rates but also streamline inventory management, improving the efficiency of supply chain operations.

While reverse logistics may seem like a logistical challenge, it presents an opportunity for retailers to optimise their processes, enhance sustainability efforts, and create more responsible consumer behaviour. As return processes become more efficient, retailers will be better positioned to manage inventory, reduce waste, and improve profitability.

4. Trade Barriers and Economic Complexity: Navigating Geopolitical Uncertainty

Global trade is increasingly defined by increasing complexity, driven by geopolitical uncertainty and the ongoing effects of global crises. Tariffs, import/export controls, and rising customs duties are already impacting the cost of doing business across borders, and these pressures are expected to intensify in the years to come.

To meet these challenges, businesses will need to adopt more agile and flexible supply chain networks. The ability to quickly adapt to shifting trade routes, new regulations, and fluctuating tariffs will be crucial for maintaining smooth operations. Companies will need to focus on building stronger partnerships with governments and other organisations to ensure access to critical resources, such as raw materials, chips, and energy, while managing the increased cost and complexity of global commerce.

These geopolitical challenges will require businesses to become more proactive in their approach to supply chain planning, embracing technology and innovative partnerships to navigate a more fragmented global landscape. By adopting a more collaborative and flexible mindset, businesses can continue to meet consumer expectations while mitigating the risks of trade uncertainty.

5. Composable Architecture: The Future of Agile Supply Chains

The concept of composable architecture has been gaining traction in recent years, and over the year ahead, it will likely become the foundation for building highly responsive and customised supply chains. Composable architecture enables companies to mix and match different technological components, from transportation management to warehouse operations, into a modular, flexible system that can quickly adapt to changing needs.

In the context of supply chain management, composable architecture allows businesses to integrate solutions that fit their specific requirements, without being locked into one-size-fits-all systems. This approach fosters greater agility, enabling businesses to pivot quickly in response to changes in the market or shifts in customer demand. By breaking down traditional silos between execution and planning systems, companies can create a more seamless flow of information, enhancing visibility and decision-making.

As businesses face increased pressure to innovate and stay competitive, composable architecture will be critical in helping them build supply chains that can easily adapt to new challenges. Whether it's responding to supply disruptions or scaling operations in a high-demand environment, the ability to rapidly integrate new technologies and processes will set successful businesses apart from the competition.

A New Era for Supply Chain and Commerce

The world of supply chain and commerce is entering a new era, driven by advancements in AI, evolving consumer expectations, and increasing economic complexity. As we look ahead, businesses must embrace new technologies and strategies that promote agility, personalisation, and efficiency. By staying ahead of these trends, companies will be better positioned to meet the demands of a rapidly changing marketplace and continue to thrive in the years to come.