**Chattanooga**: A recent Kenco survey reveals inflation and labour shortages as major concerns for supply chain professionals, with over half planning to increase innovation budgets in 2025. AI and robotics are key focus areas, but barriers to adoption, including company policy, remain significant.
A recent survey conducted by Kenco, a prominent third-party logistics provider, has highlighted the evolving challenges and opportunities within the supply chain landscape. The 2025 Supply Chain Innovation survey, conducted in Chattanooga, Tennessee, indicates that inflationary pressures and labor shortages are primary concerns for supply chain professionals, with 68% and 50%, respectively, identifying these issues as key complexities they wish to address through innovation this year.
The survey also suggests a significant inclination towards investing in new technologies, with over half (51%) of supply chain professionals reporting an increase in their innovation budgets for 2025. This trend underscores the urgency for businesses to digitalise their supply chains as they seek to adapt to rising demand.
Artificial intelligence (AI) stands out in the survey as a focal point for many companies. According to the results, 41% of the surveyed professionals intend to incorporate AI into their innovation strategies, with a notable portion already employing it for data visibility (33%), quality control (29%), and workforce optimisation (26%). However, despite the potential benefits, concerns regarding the secure and effective implementation of AI persist. Notably, 35% cited company policy as a barrier to AI adoption, prompting discussions on how best to navigate these challenges.
Kristi Montgomery, Vice President of Innovation, Research & Development at Kenco, emphasised the critical nature of this technology in today’s competitive landscape. Speaking to Business Wire, she stated, “Avoiding AI entirely is no longer an option. Implementing it strategically can give supply chain-focused companies a serious competitive advantage.” Montgomery urged organisations to explore AI applications, particularly for automating data-heavy operations like demand planning and logistics.
In addition to AI, the survey revealed insights into physical automation preferences among supply chain professionals. Robotics topped the list at 43%, closely followed by sensors and automatic identification (40%) and 3D printing (40%).
The survey also explored the relationships suppliers cultivate with their partners for innovation. While some companies show a preference for established developers, collaboration with startups remains significant; 45% of respondents work with a blend of both. However, partnerships with third-party logistics providers (3PLs) seem limited in scope, as only 13% indicated their 3PL identified any need for innovation, and merely 8% sought to develop technology in collaboration with them.
Montgomery highlighted the untapped potential in utilising 3PLs for insights beyond logistics management, advising businesses to leverage their logistics partners’ day-to-day operational observations to uncover innovative solutions. “Don’t be afraid to tap your 3PL for more than just managing your supply chain,” she said.
As companies navigate the complexities of supply chain digitisation, the findings from Kenco’s survey reveal a clear message: strengthening supplier relationships and embracing digital innovations are essential for driving revenue and achieving operational excellence in a rapidly changing market landscape.
Source: Noah Wire Services
