Survey: Supply chain execs focused on leveraging tech to boost productivity
Managing operational costs and labor shortages and leveraging new technology are among the top priorities for supply chain executives.
More than three-quarters (78%) of companies surveyed rate managing operational costs as a top investment driver, according to a new report from Incisiv, Verizon and Ericsson. Companies report lower satisfaction with complex, labor-intensive operational processes like order fulfillment (67%), and shipping and material handling (both 66%), which represent potential areas for automation.
A large majority (86%) of companies surveyed in the "2024 State of Smart Distribution Study: The Age of Efficiency and Resilience" cited labor shortages and workforce management as significant challenges, with key issues including recruiting skilled workers (85%), competitive compensation (75%) and employee turnover (70%).
New technology continues to play a massive role in supply chain operations, as 81% of companies surveyed have or plan to deploy mobile devices by 2026 to improve productivity. Companies also plan to invest in RFID or Internet of Things inventory tracking (49%), robotics for picking and packing (45%) and camera vision for quality control, packing and returns (37%). While 84% of companies say AI will be a necessity to compete in the future, only 10% have a common understanding of AI across the enterprise.
Nearly two-thirds (65%) of companies say their current network cannot support their needs for the next 24 months. A similar percentage (61%) are dissatisfied with the reliability of their in-facility network or connectivity.
"These results show how distribution operations have shifted toward increasing productivity to satisfy online shoppers' evolving needs," said Gaurav Pant, chief insights officer at Incisiv. "Companies that empower their people with proven technologies and invest in infrastructure upgrades will gain a competitive advantage."
Incisiv surveyed 134 executives from manufacturers, logistics warehouses and retail distribution centers for the report.
