MHI Solutions Improving Supply Chain Performance
55% say they are increasing their investment in supply chain tech and innovation and 42% are planning to invest over $10 million
A new report released by MHI and Deloitte finds that 55% of supply chain leaders are increasing their supply chain technology and innovation investments, with 88% saying they are planning to spend over $1 million. Forty-two percent plan to spend over $10 million.
This investment includes solutions for improved collaboration between tech and human workers, according to the 2024 MHI Annual Industry Report, “The Collaborative Supply Chain: Tech-forward and Human-Centric.” The report provides new insights into trends and technologies that are transforming supply chains and the priorities of the people who run them.
As a result of these increased investments, adoption of the 11 categories of technology covered in the report is predicted to rise dramatically over the next five years.
- Inventory and Network Optimization—85%
- Internet of Things—85%
- Artificial Intelligence—84%
- Sensors and Automatic Identification—83%
- Robotics and Automation—82%
- Cloud Computing and Storage—82%
- 3D Printing—81%
- Advanced Analytics—78%
- Blockchain—77%
- Autonomous Vehicles and Drones—76%
- Wearable and Mobile Technology—75%
The 2024 report, the eleventh in a series of annual industry reports published by MHI and Deloitte, provides updates on the innovative technologies that have the most potential to transform supply chains in a human-centric and collaborative way that maximizes performance gains while at the same time empowering workers. Supply chain leaders play a pivotal role in creating and enhancing this balance between technology-driven and human-centric approaches.
“The focus on technology in supply chains is undeniable. But supply chains are run by people, and human-centricity is the key,” said John Paxton, CEO of MHI.
Leading Trends Impacting Supply Chains in 2024 and Beyond
This year’s survey reveals five key trends impacting supply chains that will dictate the course of actions and focus for industry leaders moving forward. These key trends impacting supply chains are:
- Supply chain agility as geopolitical concerns and ongoing risks are impacting operations. Organizations need to ensure their supply chains center on flexibility and adaptability in the face of dynamic market conditions, geopolitical risk and growing reshoring initiatives.
- Rising costs, including inflation and cost of capital. While inflation is easing in the U.S., firms will need to monitor and strategically manage rising costs globally, particularly in Europe.
- Supply chain workforce, including the talent shortage and changing skillsets. Automation is increasing overall worker satisfaction by making jobs better and more techforward. However, culture and flexibility are key in recruiting, retaining and reskilling a high-achieving workforce.
- Sustainability and Environmental, Social and Governance (ESG) measurement and reporting regulations are on the near horizon and organizations working with their suppliers to meet coming net zero goals and responding to risks associated with climate-related disruptions.
- Visibility and transparency goals are compelling leaders to prioritize technology-driven investments and supplier collaboration
The report also provides real-world case studies of digital supply chain technologies and recommendations for leaders to develop strategies to implement these innovations.
The findings of the 2024 report are based on survey responses from over 1,700 manufacturing and supply chain industry leaders from a wide range of industries at the end of 2023. Eighty-one percent of respondents hold executive-level positions such as CEO, vice president, general manager, department head or engineering management. Participating companies range in size from small to large, with 75% reporting annual sales of more than $50 million, and 17% reporting $1 billion or more.
Download the complete report at mhi.org/publications/report.