Global supply chain executives are doubling down on technology investments to improve efficiency, resilience and sustainability in the face of continued volatility, according to new research from Blue Yonder.
The world leader in end-to-end digital supply chain transformation recently released its inaugural three-part Supply Chain Compass report, based on insights from nearly 700 senior supply chain leaders who work in manufacturing, retail and logistics.
Implementing new technologies (51 percent) was identified as the most important strategic goal for the next three years, followed by improving productivity (40 percent) and building resilience (29 percent).
Respondents identified better demand planning (46 percent) and quickly obtaining and analysing data on performance (46 percent) as two of the top actions they believe are essential to success, followed by investment in tracking and visibility solutions (45 percent), digital software transformation and innovation (41 percent) and managing supply chain costs (33 percent).
In the current macroeconomic environment characterised by volatility and rapid change, focusing efforts on each of these actions will be critical, said Blue Yonder.
“These priorities not only speak to immediate operational challenges but also position organisations to adapt swiftly to external pressures, ensuring resilience and competitiveness in an unpredictable landscape.”
According to the study, 89 percent of organisations have set dedicated budgets for new technologies, with 61 percent planning to invest between US$1 million and $10 million by 2030. A strong majority (82 percent) also believe outdated technology poses a risk to supply chain performance.
Andrea Morgan-Vandome, Chief Innovation Officer at Blue Yonder, said 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.
“In the face of ongoing economic uncertainty, geopolitical instability and inflationary pressures, supply chain leaders are prioritising technologies that enhance speed and precision,” she said.
“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.”
Unsurprisingly, artificial intelligence (AI) is becoming increasingly important, with 83 percent of companies using or implementing AI-powered automation, while 78 percent deploy machine learning and predictive analytics.
Almost three quarters (74 percent) agree that AI is already changing the way their business operates.
On the flip side, only 36 percent of organisations have embraced generative AI (GenAI), with slow adoption caused by concerns over cost, workforce impact and competing priorities.
Businesses focused on transportation, order management, execution and fulfillment are leading the GenAI charge (46 percent), while those in logistics (16 percent) have no plans to implement.
Sustainability is also gaining prominence, with more than two-thirds (68 percent) of respondents agreeing that supply chain operators have a responsibility to address environmental challenges such as waste and climate change.
Tangible sustainability initiatives, such as sustainable packaging, waste reduction and renewable energy, are currently favored over technology-driven sustainability solutions like data analytics for emissions tracking, connected networks for efficient shipping, reducing waste from expiration and better returns processing.
However, there is a recognised link between sustainability, technology and efficiency among one cohort, with just over a quarter (26 percent) believing that forecasting technology can improve efficiency and, in turn, sustainability efforts.
Saskia van Gendt, Chief Sustainability Officer at Blue Yonder, said the study highlights that companies who have established sustainability as a top priority rate their overall supply chain performance more optimistically.
“The intersection of technology and sustainability presents a promising opportunity. Leaders who prioritise 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,” she said.
Of respondents who named sustainability as a top three strategic priority, 94 percent say end-to-end data connectivity is fundamental to the success of their business (vs. 85 percent total), 80 percent say AI is already changing how they operate (vs. 74 percent total) and 61 percent say they are currently investigating GenAI.
