Dunkin’ did not have the smoothest start to 2025. In early January, locations of the donut and coffee giant in New Mexico and Nebraska had no donuts available due to what the company called “a manufacturing error.” Dunkin’ said the shortage impacted only about 4% of its more than 9,500 stores nationwide.
In the grand scheme of things, that seems like a minor disruption. If the past couple of years in the supply chain have proven anything, though, it’s that no disruption is a small disruption. Organizations need every available tool to navigate these unexpected hiccups to make sure they don’t turn into larger problems. Even better, they can take steps to be proactively prepared for anything that lies ahead. Here are some of the strategies companies might employ to help them adjust, and how data plays a major role in all of them.
Diversity in the supply chain
Supplier diversity offers a number of benefits. One is simply that if one supplier hits a snag and is unable to provide the necessary products—donuts, for example—an organization has other options to turn to. With the new year starting under threats of tariff hikes, labor unrest, transportation increases, and political conflicts around the world, the more options a company provides for itself, the better off it is to handle complications. Another important aspect comes along with the fact that companies are increasing their focus on sustainability and ethical practices. Having more than one choice of supplier allows an organization to make choices that better align with its values.
The more data an organization has, the better it can evaluate its options. Data can help an organization decide on a variety of suppliers, or it can help an organization identify its own potential supply chain weak spots where it might need to expand its choices. Even if certain anticipated disruptions never come to fruition, the data involved in analyzing different suppliers or transportation routes can still help inform decisions that might end up saving an organization money.
Internet of Things
2024 featured a few high-profile instances of foodborne illness outbreaks. Late in the year, one person died and more than 30 others hospitalized after an E. coli outbreak at McDonald’s. Over the summer, two deaths and more than two dozen other sicknesses were attributed to listeria poisoning from Boar’s Head deli meats produced at a plant in Virginia. These instances have increased companies’ reliance on Internet of Things (IoT) technology and what it can do to help them make sure they are using the safest possible products, and to ensure that the products are being kept safe throughout their supply chain.
The right tools can provide real-time data about a product throughout its journey, even sending alerts if temperatures change or other deviations occur. In addition to making sure products arrive at their final destination in ideal condition, organizations can use the data to help them meet the regulatory requirements that come along with the industries that rely on this type of technology. The same data can also be used to make sure all goods are being transported in the most optimal fashion, so no time is being wasted and products are reaching store shelves efficiently.
Artificial intelligence
According to the MIT Digital Supply Chain Lab, transforming the supply chain digitally can lead to a 50% reduction in process costs and an increase in revenue by 20%. Among the ways this transformation is happening is through the increased presence of AI. Experts predict an increased emphasis on AI in the supply chain in the coming year because it can offer organizations end-to-end visibility and faster decision-making. Another major factor is AI’s ability to assess environmental data, helping organizations meet their sustainability goals.
AI can only be effective, though, if there is reliable data for it to work with. Before an organization can commit to an approach that relies heavily on AI, it needs to make sure it has an analytics solution that can integrate data from all sources, providing the data trust that allows AI to perform effectively. Only then can decisions be made based on the information AI is providing.
Even without AI, reliable data is the cornerstone of all of the work that needs to be done to ensure a seamless 2025, no matter what disruptions may lie ahead. Without a reliable analytics solution, your organization may still be able to function, but it won’t be achieving everything it is capable of. Sort of like a donut shop without the donuts.
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