Supply chain leaders invest in AI & tech for resilience, growth

Techday NZ

3 days ago

Blue Yonder has released the findings of its inaugural Supply Chain Compass report, presenting the strategic priorities of nearly 700 global supply chain leaders across sectors including manufacturing, retail, and logistics.
The report identifies implementing new technology (51%), improving efficiency and productivity (40%), and building more resilient supply chains (29%) as the leading focus areas for supply chain leaders over the next three years.
Achieving these priorities will require specific actions, with better demand planning and rapid access to performance data each cited by 46% of respondents as essential.
Investing in tracking and visibility solutions (45%), digital software transformation and innovation (41%), and effective supply chain cost management (33%) also feature prominently in leaders' strategies.
The report indicates these measures address both immediate operational challenges and longer-term demands for flexibility against a backdrop of economic and geopolitical uncertainty.
"A consistent theme among surveyed leaders was the adoption of innovative solutions that deliver true end-to-end visibility across the supply network and enable a more connected, intelligence-driven approach to demand and supply planning," said Andrea Morgan-Vandome, Chief Innovation Officer at Blue Yonder.
"In the face of ongoing economic uncertainty, geopolitical instability, and inflationary pressures, supply chain leaders are prioritizing technologies that enhance speed and precision. The report highlights that, beyond mitigating risk, decision-makers are increasingly exploring next-generation AI agents to advance sustainability goals and build supply chains that are not only faster but also more efficient."
Investment in technology is a clear trend, with 89% of decision-makers allocating a dedicated budget to new supply chain technologies. For 61% of respondents, investment levels in supply chain technology range from USD $1 million to USD $10 million over the next five years.
The report also reveals that 74% of leaders believe AI is already transforming their business operations, and 82% agree that outdated technology hampers supply chain potential. Implementing new technology ranks as a top-three priority for 51% of supply chain leaders over the coming years.
Adoption of traditional AI solutions for automation and prediction is well established, with 83% of respondents using or adopting AI-powered automation, and 78% using machine learning and predictive AI. In comparison, just 36% are using or implementing generative AI solutions.
Generative AI is being explored for its potential to improve reliability and advance sustainability objectives.
One in four companies is currently in the process of implementing generative AI, and only 16% report no intention to do so.
Barriers to generative AI adoption include an organisational preference for people-led approaches (51% of those with no plans for AI), high implementation costs—particularly among those with limited technology budgets—and other strategic priorities such as automation of inventory management.
Companies focused on transportation, order management, execution, and fulfilment are the most likely to be exploring generative AI (46%), whereas logistics-focused organisations record a lower rate of planned adoption at 16%.
Sustainability is a significant consideration for supply chain leaders, with "sustainable" selected as the leading descriptor for the future of supply chain operations. Nearly two-thirds (68%) agree there is an obligation for supply chain operators to address issues such as waste and climate change.
Organisations that list sustainability among their top three priorities tend to view their supply chain performance more positively, and report greater engagement with technology and AI adoption. Among this group, 94% consider end-to-end data connectivity fundamental to business success, 80% report AI is actively changing operations, and 61% are investigating generative AI.
Efforts to improve supply chain sustainability are primarily concentrated on practical initiatives such as sustainable packaging (37%), waste reduction in manufacturing (30%), recycling (28%), renewable energy use (28%), and lowering emissions from warehouses and facilities (27%).
Fewer leaders have adopted technology-driven sustainability solutions, including data analytics for emissions tracking (22%), connected shipping networks (17%), measures to reduce waste from expiration (13%), and improvements in returns processing (12%).
There is, however, recognition that forecasting technology can play a role in increasing both efficiency and sustainability, with 26% of respondents identifying this as a key link.
"This study highlights that companies who have established sustainability as a top priority rate their overall supply chain performance more optimistically," said Saskia van Gendt, Chief Sustainability Officer at Blue Yonder.
"The intersection of technology and sustainability presents a promising opportunity. Leaders who prioritize sustainability are leveraging advanced technologies such as AI and data connectivity to enhance efficiencies and reduce environmental impact. By embracing these innovations, we can transform our supply chains into powerful engines of sustainable growth."
The Blue Yonder Supply Chain Compass report was compiled following a survey of senior supply chain leaders in North America and Europe, offering insight into leadership perspectives on technology, efficiency and sustainability in a rapidly evolving supply chain landscape.