Global supply chain survey underscores regional differences and cautious tech adoption amidst sustainability pressures

A comprehensive DHL survey reveals regional disparities, a cautious approach to AI, and the growing importance of sustainability and resilience in modern supply chains, highlighting the need for tailored strategies and collaborative planning.

A recent survey by DHL, capturing responses from over 2,500 supply chain professionals worldwide, offers a nuanced view of current trends and challenges within logistics and supply chain management. Unlike many commercially driven ...

surveys, this report takes a broad and practical approach, highlighting key insights that reflect regional and sectoral differences in supply chain priorities and realities.

One of the survey’s pivotal findings is the significant variation in trend importance across global regions. This suggests that trends spotlighted by US-based media and consultancy firms may not resonate universally. Indeed, logistics challenges and solutions must be tailored to the specific industries, countries, and regions involved, underscoring the need for professionals to critically analyse their supply chains’ unique drivers, rather than adopting generic global narratives.

Efficiency continues to be the primary driver within logistics functions, focusing largely on cost reduction rather than value creation for the broader business. Despite this, customers primarily care about ‘delivery in full, on time, with accuracy’ (DIFOTA), a performance measure not prominently featured as a driver in the survey findings. This discrepancy highlights a potential gap between internal supply chain goals and customer expectations, calling for a renewed emphasis on meeting core service standards as a competitive differentiator.

Regarding technological developments, the survey reveals a cautious approach to AI implementation within logistics. While the hype around AI remains strong—reflected by the fact that 25% of global start-up investments in 2023 targeted AI-related businesses, as noted in another recent study—logisticians are prioritising data quality, governance, and the establishment of robust operational frameworks before fully embracing AI solutions. The emphasis lies on scaling proven analytics capabilities gradually, supported by increased computing power, cloud storage, and enhanced data analytics tools. However, a persistent challenge remains in attracting talent with the requisite data science and analytical skills to drive these initiatives forward.

The report also highlights promising technological solutions that focus on enabling “traceable, data-rich shipments,” which include next-generation packaging, smart printables, and the Industrial Internet of Things (IIoT). These technologies promise improvements in cost efficiency, compliance, sustainability, and customer visibility without necessitating heavy system overhauls. Importantly, environmental sustainability has become a strategic imperative, with investments in electrification and renewable energy poised to reduce emissions and meet stakeholder expectations, reflecting the growing urgency of climate change risks affecting supply chains globally.

However, cost constraints and resource limitations remain significant barriers to technology adoption and multi-site rollouts. Achieving successful implementation requires clear return on investment (ROI), strategic staging of deployment, and alignment with cross-functional organisational goals. Without these, projects face a high risk of failure due to competing priorities and fragmented internal focus.

Amidst this technological and efficiency-driven landscape, the survey report advocates for a more grounded approach centered on simplifying business processes to enhance supply chain effectiveness. Understanding the full spectrum of supply chains—from internal operations to extended networks encompassing suppliers and end customers—is critical. Mapping these networks through tools like the Supply Chains Network Design Map helps identify critical suppliers, assess risks, and better align supply chain activities with overall business objectives.

The fundamental role of Sales and Operations Planning (S&OP) is emphasised as the heart of effective supply chain management. This cross-functional process balances demand and supply, fosters executive accountability, and integrates risk appetite and tolerance discussions to build resilience against disruptions. Executed well, S&OP moves beyond being a finance-centric budgeting tool to become a forum for collaborative decision-making and continuous improvement, driving improved delivery performance and operational resilience.

Complementary insights from related analyses support these findings. Building resilience, as highlighted in a DHL report, requires time and strategic agility to withstand future disruptions. Regions like Western Europe and East Asia show more robust recovery pathways post-disruption, whereas others, including India, Brazil, and South Africa, face ongoing challenges. This reinforces the survey’s emphasis on regional and sectoral nuance in supply chain strategy.

Concerns about the overhype of AI resonate in the wider logistics community. While AI holds promise, the industry acknowledges the critical need for a measured, evidence-based approach to adoption, emphasising readiness and capability over impulsive investment.

Additionally, the growing complexity of supply chain decision-making increasingly demands an analytical mindset supported by rigorous data-driven tools and training. With abundant data available, companies must overcome challenges of data overload and quality to make smarter, more informed decisions—an imperative echoed through recent thought leadership advocating for “thinking analytically” within supply chain management.

Finally, climate change presents an escalating risk with multifaceted impacts ranging from extreme weather to infrastructure resilience and economic effects, often described as “Climateflation.” Supply chains must evolve by integrating sustainability priorities and adaptation strategies to mitigate these disruptions, as supported by European Environment Agency assessments categorising risks across finance, infrastructure, ecosystem, health, and food sectors.

In summary, the DHL survey and complementary insights paint a picture of supply chains at a crossroads: balancing efficiency and cost-cutting with the strategic need for resilience, sustainability, and technological prudence. Success will depend not only on adopting new technologies but on embedding them within simplified, well-understood business models, backed by strong collaborative planning and analytical decision-making frameworks. This comprehensive approach may well define the future of effective logistics in an increasingly uncertain and dynamic global marketplace.

Source: Noah Wire Services