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12% of supply chains using AI, according to annual report

12% of supply chains using AI, according to annual report

In the latest annual MHI Industry Report, it has been revealed that just 12% of supply chain professionals say their organisations are leveraging AI.

The findings were revealed in MHI Industry and Deloitte's report, which surveyed 1,001 supply chain professionals in manufacturing, transportation and other industries. The survey went on to reveal that 60% of those surveyed expect to be introducing AI into their operations within the next five years. 

Survey respondents believe the innovations covered in the survey could disrupt supply chain practices and create a competitive advantage for companies that adopt them. Since the previous survey, robotics and automation rose from fifth to first place, with 67% of respondents believing it has the potential to disrupt or create a competitive advantage. Also according to the survey, 20% of supply chain leaders believe the digital supply chain is the primary model, with 80% anticipating it to be the predominant one within the next five years.

12% of supply chain professionals surveyed believe they are adopting AI into supply chains

Image source: MHI Industry Report


Adoption rates

The innovations that are primarily in use today are centered around cloud computing and storage, robotics and automation, as well as sensors and automatic identification. Over the next 12-24 months, cloud computing and storage is set to grow to 81% adoption, followed by 90% in the next three to five years. Inventory and optimisation is thought to reach 74% in the next 12-24 months, followed by 89% in three to five years. While robotics and automation is thought to reach 58% over the next two years, followed by 73% in the next three to five years.

Finding and retaining the right talent remains one of the most challenging areas for today’s organisations. In this year’s survey, 71% of respondents believe that recruiting talent is somewhat challenging, followed by hiring employees (68%) and retaining talent (59%). The next challenge after the top three was revealed to be offering top performing employees career progression (57%).

To discover more insights from the MHI Industry Report, click here!

For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital magazine.

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