**London**: A recent MHI and Deloitte report indicates that 55% of supply chain leaders are set to boost investments in technology, with 60% planning to spend over $1 million, amid shifting trends and rising challenges in the sector.
On March 20, a report released by MHI and Deloitte revealed that a significant majority of supply chain leaders are planning substantial investments in technology and innovation. The findings indicate that 55 per cent of those surveyed aim to increase their spending in these areas, with 60 per cent planning to allocate over $1 million. Notably, 19 per cent have set their sights even higher, with intentions to invest more than $10 million in supply chain improvements.
The report, titled “The Digital Supply Chain Ecosystem: Orchestrating End-to-End Solutions,” is part of the 2025 MHI Annual Industry Report series and provides insights into the shifting priorities and trends within supply chain management. It highlights the necessity of integrating both technology and human expertise to optimize supply chain operations comprehensively.
According to the data, the adoption of eleven specific technology categories is expected to rise significantly over the next five years. The projected adoption rates are as follows: Inventory and Network Optimization at 92 per cent, Cloud Computing and Storage at 91 per cent, Sensors and Automatic Identification at 88 per cent, Predictive Analytics at 87 per cent, Robotics and Automation at 83 per cent, and Artificial Intelligence at 82 per cent. Other technologies expected to see substantial adoption include the Internet of Things at 77 per cent, Wearable and Mobile Technology at 72 per cent, and Autonomous Vehicles and Drones at 64 per cent, among others.
John Paxton, CEO of MHI, remarked on the current transformation within the industry, stating, “These are exciting times for the supply chain industry as we see the orchestration of technology and talent coming to the forefront.” He emphasised that the future will centre on finding the right balance between human capabilities and technological advancements to improve efficiency, transparency, and sustainability within supply chains.
Artificial Intelligence (AI) is expected to experience a notable surge in adoption, with current usage reported at 28 per cent. The report predicts that an additional 54 per cent intend to implement AI within the next five years, which could bring the total adoption rate to 82 per cent by 2029. Respondents indicated that AI is already adding value across various functions within supply chains, including inventory management, demand planning, and logistics. Paxton noted the potential of “agentic AI,” which can function independently, to enhance overall visibility and forecasting precision, particularly in addressing supply chain disruptions.
Further analysis of the survey findings reveals the top five impactful trends currently faced by the supply chain sector: inflation (38 per cent), economic uncertainty (37 per cent), workforce and talent shortages (35 per cent), supply chain agility and resiliency (28 per cent), and inventory challenges (25 per cent).
In addition to these trends, the report outlines five key technology-specific trends affecting supply chain strategies: increasing concerns over Cybersecurity and Data Security; a growing Demand for Real-Time Data; rapid Digitization and the Pace of Technology Adoption; ongoing E-commerce Growth; and a heightened focus on Sustainability. Wanda Johnson, a supply chain technology fellow at Deloitte Consulting, stressed the need for leaders to ensure seamless integration across supply chain components to improve efficiency and meet rising customer expectations.
The report’s conclusions are based on responses from over 700 leaders in the manufacturing and supply chain industries, collected at the end of 2024. The majority of respondents hold executive-level positions, such as CEO, Vice President, or General Manager, and the companies represented in the survey range in size, with many reporting annual sales exceeding $50 million.
Source: Noah Wire Services
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