Artificial intelligence has been disrupting the supply chain since before ChatGPT spearheaded an increase in adoption. That trend isn’t going away; in fact, it’s quickening, according to a new report from contract logistics provider DHL Supply Chain.
In a study that surveyed 350 CEOs, vice presidents and directors from supply chain companies from Feb. 12 to March 7, a whopping 73% of respondents reported that they expect their supply chains to become more reliant on AI over the next five years.
According to the Insight 2030: Opportunities and Challenges For the Supply Chain of the Future survey, 78% expect generative AI, machine learning and predictive analytics to significantly impact operations by 2030, and 73% said robotics/automation will impact their company most.
In addition, 76% said they expect advances in transportation technology and IoT (71%) to impact the supply chain by 2030.
“Since 2020, supply chains have been in a period of transformation. While supply chain leaders may be hoping for a period of stability in the coming years, the research presented in this report indicates the pace of change may actually be accelerating,” said DHL Supply Chain North America CEO Mark Kunar. “While advanced systems and increased automation have become essential in managing the modern supply chain, these technologies also bring their own set of concerns, as well as implementation and management challenges.”
Though they anticipate an increase of dependence on technology, supply chain leaders aren’t confident in the technologies available to them. Almost half of survey respondents are concerned about the rapid evolution of technology.
Nine out of 10 supply chain companies are using management systems that were installed or upgraded in the last five years, but 49% said inadequate technological solutions and outdated systems (47%) were among their top concerns.
Kunar said one way to skirt these concerns is to partner with a 3PL.
“Supply chain leaders face significant challenges in enabling the improvements required to ensure their supply chain remains a competitive asset in the next five years,” he said. “The much-needed resources and expertise to help them overcome these barriers can come through partnering with a third-party logistics provider.”
One of the primary reasons to partner, he said, is cybersecurity.
Over half of survey respondents expressed concern about cybersecurity with many industries citing it as a top concern. Seventy percent said they anticipate cybersecurity threats will impact their networks through 2030.
Other disruptive forces cited include higher labor costs (69%), labor shortages (66%), natural disasters (63%) and international tensions (62%).
