Supply chain execs key strategic priorities are…
More than half of supply chain executives identify the same focal point for their strategies.
Half (51%) of nearly 700 surveyed global supply chain leaders cited implementing new technology as a key strategic priority, according to the inaugural "Supply Chain Compass" study from supply chain management company Blue Yonder. The other two top supply chain priorities were improving efficiency and productivity (40%) and building more resilient supply chains (29%).
When asked what steps they would need to take to achieve these priorities, respondents identified better demand planning (46%) and quickly obtaining and analyzing data on performance (46%) as two of the top actions they believe are essential to supply chain success.
These were followed by investing in tracking and visibility solutions (45%), digital software transformation and innovation (41%) and managing supply chain costs (33%).
New technology is key
Three-in-four (74%) respondents agree that artificial intelligence is already changing the way their business operates. More than eight-in-10 (82%) respondents agree that outdated technology will hinder their supply chain’s potential and 51% state that implementing new technology is a top priority in the next three years.
Nine-in-10 (89%) respondents are dedicating a specific budget to new supply chain technologies. For 61% of respondents, the budget for supply chain technology is between $1–10 million across the next five years.
Barriers to AI adoption
Survey responses indicate generative AI is currently under-implemented compared to traditional AI, which is largely used for prediction and automation. The majority of respondents (83%) are using (or are implementing) AI-based automation, and 78% said the same of machine learning and predictive AI.
By contrast, just 36% of respondents are using or implementing generative AI. Of those with no plans to implement generative AI, 51% said that their organization will prioritize a people-led approach over cutting-edge technology.
Respondents with an expected technology budget lower than $500,000 for the next one to five years are significantly less likely to consider implementing generative AI.
Those respondents whose organizations focus on transportation, order management and execution and fulfillment are significantly more likely to be investigating the implementation of generative AI (46%), while those in logistics (16%) are less likely than other respondents.
Sustainability
Almost seven-in-10 (68%) respondents agree supply chain operators are expected to help solve problems like waste and climate change. Respondents that chose sustainability as a top three strategic priority are far more optimistic about their business performance.
[READ MORE: Survey: Most consumers still look to buy sustainable, but only some will pay extra]
Top opportunities identified for sustainability in supply chains were sustainable packaging (37%), reducing waste across manufacturing (30%), recycling (28%), renewable energy resources/green fuels (28%) and lower emissions from warehouses and facilities (27%).
"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, 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."
