As we navigate the complexities and evolving challenges of modern supply chain management, finding practical answers requires a balanced approach—a look into the past to best predict our future, blending theory with practice. To gain a comprehensive perspective, we sat down with Frode Reksten, one of Norway’s leading lecturers in Supply Chain Strategy.
Frode’s extensive experience, spanning four decades and crossing military, academic, and corporate boundaries, provides a unique lens through which to view the future of supply chain and logistics for producers and distributors in Europe.
1. Who is Frode Reksten?
Frode Reksten’s career is as diverse as it is distinguished. After 15 years of service in the Royal Norwegian Army, Reksten transitioned into the private sector, taking on roles as a supply chain manager, purchasing officer, and CEO across multiple industries. For the past 24 years, he has balanced his time between lecturing at the Norwegian School of Business and Management and driving various projects within the public and private sectors. This dual role has been instrumental in shaping his approach to logistics.
“What I find rewarding about straddling academia and corporate is the polarity between academic theory and real-world application,” Reksten shares. “Leveraging the latest research and applying it directly to both the public and private sectors creates a feedback loop that is invaluable. It allows me to combine theory with real-life scenarios, offering students, governments, and business leaders a more holistic understanding of the industry and enabling businesses to benefit from cutting-edge insights.”
2. Evolution of Modern Supply Chain and Logistics
The Importance of Information Flow
"Everything in logistics boils down to the flow of information." — Frode Reksten
To understand what will drive success in 2025 and beyond, we must first look to the past. Frode Reksten highlights the Toyota Production System as a cornerstone in the evolution of modern logistics. Originally developed to streamline manufacturing in the 1970s, the system emphasized lean production, just-in-time delivery, and continuous improvement.
"The Japanese understood that to reduce costs and increase quality, internal integration was crucial," Reksten explains.
The real power of the Toyota Production System lay in its ability to ensure that every decision was informed by accurate, timely data. This internal integration, powered by efficient information management, laid the foundation for what we now recognize as modern supply chain management.
Bridging the Gap in Today's Supply Chains
Despite the clear lessons from Toyota, many businesses today still struggle to fully grasp that the supply chain is not just about moving goods but about managing the information that guides those movements.
"People often don't grasp that the supply chain is not just about the flow of goods; it's about managing information and making decisions based on that information," Reksten notes.
This concept, he advises, must permeate through all levels of business in order to be effective.
3. 2025 European Supply Chain and Logistics Outlook
Automation and AI: Driving Strategic Decisions
As we delve into the impact of technology on logistics in 2025, Reksten emphasises that the shift from manual processes to automation is not so new. “Technology has always been about automating human processes,” he states. “From track and trace systems to warehouse management, it’s about replicating what humans used to do, but more efficiently.”
However, the recent spike in AI investment and innovation is painting an entirely new picture. “AI’s information synthesis paired with self-learning and self-optimisation capability is a game-changer for the industry,” he notes.
Key Areas of AI Impact:
- Demand Forecasting and Inventory Management
- AI helps European companies predict demand more accurately by analysing extensive datasets, reducing the risks of overstocking or stock outs, and ensuring more efficient inventory management.
- Supply Chain Visibility and Route Optimisation
- With AI, companies can achieve real-time visibility across their supply chains, allowing for better monitoring, disruption management, and optimised routes that lower fuel use and emissions—a critical factor given Europe’s strict sustainability regulations.
- Sustainability Compliance
- AI supports adherence to environmental standards by tracking carbon footprints and optimising logistics to align with sustainability goals.
By leveraging AI, European producers and distributors can enhance efficiency, ensure regulatory compliance, and stay ahead in a rapidly evolving market.
Data and Analytics: The Foundation for Strategic Decisions
In the logistics sector, data and analytics are not just tools—they are the foundation upon which all strategic decisions must be built.
“If I can make decisions that are higher quality, more sustainable, and faster, I could easily allocate my resources in alignment with corporate goals. The devil, however, is in this detail, and that’s where the message gets lost,” Reksten explains.
4. Challenges to Transformation in 2025
Barriers to Progress
With an abundance of high-tech solutions, global talent, case studies, and resources, why are so many organisations still stuck in the past?
Reksten identifies three significant challenges:
- Personal Incentive Models: Often, individual goals conflict with broader organisational strategies, slowing change.
- Corporate Culture and Roots: A traditional, blue-collar mindset prioritising physical goods over information flow often prevents modernisation.
- Oversight of Data Management: Many companies still underinvest in systems and tools to manage information effectively, limiting their ability to integrate new technologies like AI.
5. Sustainable Practices: Beyond Electric Vehicles
Optimising Transport Capacity
Sustainability in logistics requires a broader focus than just transitioning to electric vehicles (EVs). Reksten highlights a critical, often overlooked area: the underutilisation of transport capacity. "Take Norway as an example. Norwegian long haulage above 16 tonnes is typically filled to only 51% of its capacity on average trips," he reveals.
Optimising this capacity has a far greater environmental impact than simply switching from diesel to EVs.
“EVs certainly help, but filling trucks more efficiently should be the number one focus,” Reksten stresses.
6. Final Advice and Recommendations
As our conversation concludes, Reksten returns to a fundamental principle: understanding and managing information is the bedrock of effective logistics.
“Understand the past to navigate the future,” he advises.
“Leverage lessons from history—both on the macro perspective and internally in your business through data and insights—to inform your strategy. Focus on optimising information flow and decision-making first, and then consider how technology can further enhance these processes.”
Reksten's final thoughts encapsulate the essence of modern logistics:
“Logistics is more than just moving goods—it’s about integrating processes, making informed decisions based on accurate information, and continuously adapting to stay ahead in a competitive market.”
Ready to Take Control of Your Information Flow?
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