Blue Yonder has unveiled the results of its inaugural “Supply Chain Compass” report, which reflects the insights of nearly 700 senior supply chain leaders across North America and Europe. This comprehensive survey highlights three strategic priorities that many in the industry are focusing on: the implementation of new technology (51%), the improvement of efficiency and productivity (40%), and the development of more resilient supply chains (29%). These priorities are increasingly vital in a landscape characterised by volatility, economic uncertainty, and rapidly shifting market demands.
To achieve these goals in the coming years, leaders identified specific actionable steps deemed essential for success. Notably, both better demand planning and rapid analysis of performance data garnered 46% support among respondents, alongside investing in tracking and visibility solutions (45%), pursuing digital transformation (41%), and managing costs (33%). This emphasis on technology adoption and operational efficiency forms a critical framework for organisations striving to adapt and thrive.
Andrea Morgan-Vandome, Chief Innovation Officer at Blue Yonder, pointed to a common theme in the responses: the necessity for innovative solutions that foster end-to-end visibility within the supply chain. “In the face of ongoing economic uncertainty and geopolitical instability, supply chain leaders are prioritising technologies that enhance speed and precision,” she noted. The report further clarifies that beyond merely mitigating risks, there is an increasing exploration of next-generation AI systems aimed at advancing sustainability efforts, making supply chains not only more efficient but also environmentally friendly.
The findings also indicate that supply chain leaders are keenly aware of the transformative potential that new technologies present. A substantial 74% of leaders acknowledged that AI is reshaping business operations. Furthermore, 82% expressed concern that reliance on outdated technology would significantly limit their supply chain potential. With nearly nine in ten leaders allocating budgets specifically for new supply chain technologies—61% of which range between $1 to $10 million over the next five years—the commitment to technology-driven innovation is clear.
Despite the enthusiasm for AI, the report reveals barriers to its broader implementation, particularly concerning generative AI. While 83% of respondents are adopting AI-related automation and 78% are implementing machine learning, only 36% have begun using generative AI. Factors hindering this adoption include a prioritisation of people-led approaches over technology in some organisations, alongside financial constraints—a fact cited by those with technology budgets under $500,000. Still, interest remains strong, with 16% of firms indicating no plans for generative AI, reflecting varying strategic priorities across the sector.
Sustainability continues to emerge as a paramount concern for today’s supply chain leaders. Remarkably, “sustainable” was the most common descriptor for the future of supply chains amongst respondents. Nearly two-thirds of leaders believe there is an obligation for supply chain operators to tackle issues related to waste and climate change. Those organisations prioritising sustainability express heightened optimism regarding business performance. The report details several sustainability initiatives, such as sustainable packaging (37%), waste reduction in manufacturing (30%), and renewable energy utilisation (28%).
However, many leaders have yet to embrace the technological solutions that can deliver both cost savings and environmental benefits. For example, only 22% are currently investing in data analytics for emissions tracking, while less than 20% are looking at connected networks for efficient logistics. This indicates a gap between the recognition of environmental responsibilities and the implementation of sophisticated technologies that could aid in achieving these goals.
The intersection of technology and sustainability is where significant opportunities lie. The report notes that among those who set sustainability as a top strategic priority, a remarkable 94% believe that end-to-end data connectivity is critical for their success, and 80% recognise AI as a key component in their operational transformation. Saskia van Gendt, Chief Sustainability Officer at Blue Yonder, stated, “Companies that establish sustainability as a priority rate their overall supply chain performance more optimistically,” underscoring the integral connection between adopting advanced technologies and enhancing sustainability measures.
As supply chains face unprecedented challenges, the insights from the Supply Chain Compass report not only articulate the current priorities of leaders but also signal a crucial pivot towards a technologically integrated and sustainable operational model that could redefine the future of the industry. This approach will likely play a pivotal role in ensuring resilience and competitive advantage in an increasingly complex and dynamic market environment.
Reference Map
- Supply Chain Compass report results by Blue Yonder
- Blue Yonder 2024 Supply Chain Executive Survey
- Blue Yonder 2023 Supply Chain Executives Survey
- Insights from TMCNet regarding executive investment in automation and sustainability
- Blue Yonder’s sustainability commitments and initiatives
- Overview of investments in AI and generative AI
- McKinsey insights on technology’s future impact on automotive supply chains
Source: Noah Wire Services
