**Chattanooga**: Kenco’s 2025 Supply Chain Innovation survey highlights inflation and labour shortages as critical challenges. It underscores the importance of AI and automation technologies in enhancing supply chain efficiency and calls for better collaboration with third-party logistics providers to drive innovation.
Kenco, a prominent third-party logistics provider based in Chattanooga, Tennessee, has published the findings of its 2025 Supply Chain Innovation survey, highlighting the pressing complexities that supply chains face in the current economic landscape. The survey reveals that inflationary concerns and labour shortages are foremost among the challenges, with 68% of respondents identifying inflation and 50% pointing to labour shortages as significant issues they seek to resolve through innovation this year.
The survey indicates a robust commitment to advancing supply chain technologies. A notable 51% of supply chain professionals with existing innovation budgets reported an increase in their allocated funds for 2025, signalling an inclination towards investing in new technologies to cater to rising demands. Kristi Montgomery, Vice President of Innovation, Research & Development at Kenco, remarked, “Avoiding AI entirely is no longer an option. Implementing it strategically can give supply chain-focused companies a serious competitive advantage.” This sentiment underscores the urgency for industries to harness technology.
Artificial intelligence is set to play a pivotal role in supply chain strategies, with 41% of professionals incorporating AI in their innovation plans. Among those adopting AI, a third is already using it to enhance data visibility, while 29% leverage it for quality control and 26% for labour optimisation. However, despite the advantages of AI, concerns about its implementation persist. Over a third of respondents (35%) reported that company policies hinder their ability to utilise AI technology, which suggests an opportunity to improve operational effectiveness that is currently underutilised.
The survey further delineates interests in physical automation technologies. Respondents indicated a balanced interest among three emerging technologies: robotics (43%), sensors and automatic identification (40%), and 3D printing (40%). These advancements are anticipated to enhance supply chain efficiencies significantly.
In terms of partnerships for supply chain innovation, the survey revealed that professionals demonstrate caution in selecting development partners, favouring established developers. Nonetheless, there is a willingness to engage with start-ups, as 45% of respondents indicated they collaborate with a mix of new and established developers, whereas 39% prefer solely established technologies.
Despite relying on third-party logistics providers (3PLs) for the movement and storage of goods, survey results suggest that businesses do not fully capitalise on these relationships for innovation. Only 13% of professionals indicated that their 3PL had actively identified needs for innovation, while a mere 8% collaborated with a 3PL to implement new technologies. Montgomery encouraged companies to approach their 3PLs with a broader view, stating, “Don’t be afraid to tap your 3PL for more than just managing your supply chain. Your logistics partners see your operations day in and day out, and they can bring a fresh perspective to potential inefficiencies.” This highlights the potential benefits of collaborative efforts to uncover innovations that could enhance both supplier and customer relationships within the broader supply chain.
The 2025 Supply Chain Innovation survey findings reflect a critical moment for supply chain professionals as they navigate a landscape shaped by external pressures and the necessity for strategic partnerships. Kenco continues to position itself as a leader in the sector, emphasising the importance of integrated logistics solutions designed for operational excellence. For further details on the survey’s full results and Kenco’s offerings, interested parties are directed to their official websites.
Source: Noah Wire Services
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