{"id":5117,"date":"2022-07-12T12:55:59","date_gmt":"2022-07-12T17:55:59","guid":{"rendered":"https:\/\/www.mhisolutionsmag.com\/?p=5117"},"modified":"2022-08-26T14:15:03","modified_gmt":"2022-08-26T19:15:03","slug":"from-evolution-to-revolution-supply-chain-investments-spurred-by-pandemic","status":"publish","type":"post","link":"https:\/\/www.mhisolutionsmag.com\/index.php\/2022\/07\/12\/from-evolution-to-revolution-supply-chain-investments-spurred-by-pandemic\/","title":{"rendered":"From Evolution to Revolution: Supply Chain Investments Spurred by Pandemic"},"content":{"rendered":"
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Feature<\/div>\n
In the ninth edition of the MHI Annual Industry Report, 87% of leaders say COVID-19 altered the strategic importance of supply chains and 64% plan to increase spending on innovative technologies.<\/div>\n
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Click here to read the full feature in the digital version of MHI Solutions.<\/em><\/strong><\/a><\/p>\n<\/div>\n

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BY CAROL MILLER<\/span>, MHI CHIEF MARKETING OFFICER<\/div>\n

F<\/strong><\/span>or nine years MHI has been encouraging organizations to harness the power of emerging and innovative technologies capable of generating transformative change across supply chains. While we\u2019d like to think that the years of groundbreaking research that we\u2019ve collaborated upon with Deloitte has turned the investment tide, it turns out that a global pandemic was the catalyst that has inspired new, widespread investment.<\/p>\n

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That revelation was among the key findings of this year\u2019s 2022 MHI Annual Industry Report, Evolution to Revolution: Building the Supply Chains of Tomorrow.<\/em> Historically relegated to an under-the-radar afterthought (if the general consumer even thought about it at all), supply chains have become a hot topic among nearly everyone outside the industry. In fact, according to The Wall Street Journal<\/em>, the term “supply chain” was included in more than 2.2 million tweets in the fourth quarter of 2021 alone!<\/p>\n

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Who among us hasn\u2019t experienced the impact of shortages and bottlenecks? Forget toilet paper (that\u2019s so 2020). Now, the severe lack of computer chips that have become ubiquitous to everyday life is hampering production of vehicles, appliances, electronics and much more. Dramatically heightened awareness of\u2014and negative personal experiences with\u2014supply chain issues on the part of consumers have elevated supply chains to a position of prominent strategic importance at the uppermost levels of the global economy.<\/p>\n

“Supply chain leaders have never been in a better position to drive impactful and lasting change for their companies,” said John Paxton, CEO of MHI. “With the white-hot media spotlight chronicling the after-effects of the pandemic, the importance of supply chain is in the focus of boardrooms around the world.”<\/p>\n

Tech investments rising dramatically<\/h2>\n

Last year\u2019s report saw most supply chain leaders\u2019 technology spends dedicated toward building greater agility and resilience in the face of supply chain challenges. This year\u2014as nearly every prominent company across every major industry has forecasted continued supply chain bottlenecks and constraints\u201487% of leaders say COVID-19 has elevated the strategic importance of their operations. Further, nearly 78% of supply chain leaders say their digital transformation has accelerated due to the pandemic.<\/p>\n

“While COVID-19 definitely created global supply chain challenges, headaches and frustration, it also spurred tremendous investment, innovation, creativity and record business volumes,” Paxton continued, noting that the increased prominence is leading to revolutionary supply chain technology investments over the next 3-5 years.<\/p>\n

Indeed, the report found that organizations are increasing expenditures in emerging technologies. Two out of three reported plans to spend more than $1 million in the next two years. Notably, over last year, the biggest jump in projected spending was in the middle range of $5 million to $10 million. Overall, 41% of respondents plan to spend between $5 million and up to $100 million, while 18% plan to spend at least $10 million.<\/p>\n

Those findings came from 1,000-plus manufacturing and supply chain leaders who responded to a survey conducted at the end of 2021. Similar to the eight prior reports, the 2022 edition includes professionals from manufacturing, distribution and supply chain operations. Companies large and small are represented, with 59% of participants reporting annual sales in excess of $50 million, and 13% of $1 billion or more. Titles of CEO, vice president, general manager, department head, manager or engineer are held by 81% of respondents.<\/p>\n

The intense focus on supply chains\u2014and the rapid adoption of a variety of innovative technologies that deliver the digital transformation needed to compete successfully amid ongoing pandemic-fueled uncertainty\u2014was echoed in the recent MODEX keynote panel discussion that reviewed the report. Available as a free download at mhi.org\/publications\/report<\/a>, this year\u2019s report was sponsored by 6 River Systems and Generix Group.<\/p>\n

Paxton moderated the keynote along with Thomas Boykin, senior supply chain specialist at Deloitte. He\u2019s also served as the lead researcher for the past nine years of the MHI Annual Industry Report. Joining the pair to share anecdotes, insights and perspectives on the report\u2019s findings were:<\/p>\n