As rising costs and tariff pressures weigh on supply chains, many companies are turning to technology to help improve efficiency and resilience, according to a new Blue Yonder report released Tuesday. However, while leaders acknowledge the value of advanced tools, the report shows that many are still slow to adopt them.
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The “Supply Chain Compass” report surveyed nearly 700 supply chain leaders in North America and Europe across manufacturing, retail, and logistics. Leaders ranked their top priorities for the next three years as implementing new technology (51%), improving efficiency and productivity (40%), and building more resilient supply chains (29%).
“A consistent theme among surveyed leaders was the adoption of innovative solutions that deliver true end-to-end visibility across the supply network and enable a more connected, intelligence-driven approach to demand and supply planning,” said Andrea Morgan-Vandome, Chief Innovation Officer at Blue Yonder. “In the face of ongoing economic uncertainty, geopolitical instability, and inflationary pressures, supply chain leaders are prioritizing technologies that enhance speed and precision.”
Leaders say they plan to invest in these areas, with 61 percent budgeting between $1 million and $10 million over the next five years to improve their supply chains. Many are focusing on demand planning (46%), data analysis (46%), tracking and visibility (45%), and digital transformation (41%).
Artificial intelligence is already playing a growing role, with 74% of leaders saying it’s changing how their business operates. However, adoption of generative AI is still early, with only 36% using or planning to use it. Barriers include the cost of adoption and companies’ preferring a people-first approach.
Sustainability is also on leaders’ minds. Sixty-eight percent say supply chain operators should help solve environmental problems, and “sustainable” was the word most used to describe the future of supply chains in the survey. But many companies still rely on basic efforts like packaging (37%) and waste reduction (30%) rather than using technology tools such as data analytics for tracking emissions (22%).
Leaders who rank sustainability as a top-three goal are also more likely to be tech-forward. Of this group, 94% say end-to-end data connectivity is key to their business, and 61% are exploring generative AI.
“This study highlights that companies that have established sustainability as a top priority rate their overall supply chain performance more optimistically,” said Saskia van Gendt, Chief Sustainability Officer at Blue Yonder. “The intersection of technology and sustainability presents a promising opportunity. Leaders prioritizing sustainability are leveraging advanced technologies such as AI and data connectivity to enhance efficiencies and reduce environmental impact.”
