The Unnecessary Report 2024 is here! The 400 largest companies in the Nordics tie up unnecessary capital in goods equivalent to 23 billion euros which occupy a total of 8 million square meters of unnecessary storage space – enough to cover 31,000 tennis courts. By optimizing inventory management, businesses could free up valuable resources, cut costs, and support sustainability initiatives.

This year’s report highlights untapped opportunities within Nordic supply chains. Efficient inventory management and optimization can have a significant impact on a company’s profitability. According to the report, 8 million square meters of warehouse space is surplus, equivalent to 31,000 tennis courts. By implementing smarter supply chain management and optimization, companies can free up capital and reduce inventory and distribution costs. On average, the largest companies in the Nordics could free up around 58 million euros, while becoming more sustainable and efficient.

the unnecessary report 2024

The report also reveals differences across sectors and countries. Sweden has the greatest economic potential, with 8.1 billion euros to release, equivalent to 1.5% of GDP. The Tech & Life Science sector is the most inefficient, with 33% of the inventory classified as unnecessary. Despite some progress, unnecessary inventory holding has increased by 16% since the report 2021 was launched, highlighting the need for action. Optimized logistics can also reduce carbon emissions and enable investments in sustainable initiatives.

These improvements have the potential to drive sustainability initiatives and create thousands of new jobs, building a brighter, more resilient Nordic future.

Want to learn more? Download the report here for free!

Want to take your inventory management to the next level? Book a meeting with us today!

In today’s fast-changing world of supply chain management, it’s important to stay on top of the latest trends. We spoke with Stefan Holmberg, Senior Business Advisor for Supply Chain at Optilon and President of the Swedish CSCMP Roundtable, who recently attended the CSCMP EDGE Conference in Nashville. With many years of experience in the industry, he came back with insights on the future of supply chain planning, how AI is becoming more important, and the challenges businesses are facing worldwide. From the rise of generative AI to changes in global production strategies, Stefan’s thoughts give us a clear look at where the industry is heading.

Hi Stefan! You recently attended the CSCMP EDGE conference in Nashville. What trends do you see coming from there?

– I was particularly interested in Supply Chain Planning topics, especially when there was an AI component. My conclusion is that the trend toward AI-supported planning and execution continues, with more business cases emerging, although still at a somewhat basic level. One key difference I’ve noticed is the growing focus on generative AI rather than general AI. Additionally, using unstructured data presents significant opportunities for efficiency gains, particularly in processing written documents, such as various types of contracts. Working with these documents and tasks is extremely time-consuming today.

– The first step is to carry out a scenario analysis of local versus global needs. Network Optimization models can be used to analyze how different levels of glocalization impact your supply chain. The second step is to optimize cost, service, and risk adjustments. Network Optimization models can analyze cost trade-offs between global and local strategies, such as transportation, customs, or local compliance costs.

How do the challenges faced by companies in Asia or the US differ from those encountered by businesses in Europe and the Nordics?

– There are differences between companies in various parts of the world, driven by their geography, infrastructure, regulations, access to skills, and culture. Large companies often operate globally, and while most supply chains are global, there is now more focus on bringing production closer to sales markets. This shift is driven by geopolitical tensions, lessons from the COVID pandemic, and events like the incident in the Suez Canal.

– Cloud-based technology reduces location disadvantages, as it’s accessible with just an internet connection. In the Nordics, though we are on the edge of Europe, shipping goods south can still be done within a day or two, which is quicker than crossing the U.S. or shipping across Asia. The main challenges we face are traffic congestion and driving restrictions.

CSCMP EDGE Conference, branschledare diskuterar lösningar inom supply chain management.
Stefan Holmberg, alongside other industry professionals, attended the CSCMP EDGE Conference in Nashville.

Are there specific areas where Nordic companies are leading, and others where they might be falling behind?

– I believe Nordic companies have a significant advantage in their focus on sustainability. We tend to have a more developed and insightful approach to sustainable practices compared to other regions.

What are your key takeaways from the conference?

– What stands out from a global conference like CSCMP Edge is that, while the challenges aren’t identical, many companies are dealing with similar issues—like finding better ways to automate distribution and build agility and resilience in global supply chains. My key takeaways are:

  • AI is rapidly evolving, particularly in Generative AI, with training costs significantly reduced and technology ready for adoption. However, while 73% of business leaders plan to embark on an AI journey, about 75% are unsure how to start. We are approaching a “tipping point” for AI adoption, but greater trust and widespread use are necessary.

  • The demand for energy to support AI will continue to rise.

  • The need for high-performing teams will increase alongside AI adoption, presenting challenges in building and supporting these teams. Being part of a global network like CSCMP offers valuable opportunities to learn from diverse experiences.

While things are changing quickly, the key to success will be staying adaptable and working together across different regions. The future of supply chain management will be driven by innovation, resilience, and global collaboration—things that will help businesses stay ahead in a world that’s always evolving.

Want to know more about how these trends could impact your business? Book a meeting with us today!

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