MHI Report: Investment increases as supply chains become more tech-forward and human-centric

A new report released today at Modex by MHI and Deloitte finds that 55% of supply chain leaders report they plan to increase their supply chain technology and innovation investments over the next two years, 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.

The 2024 report, the 11th 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.

AI adoption and interest are at historic levels, with 84% of survey respondents now reporting plans to adopt AI technologies within the next five years, the report found. Additionally, 47% of respondents report they will increasingly focus on using AI for decision making. As the full report concludes, “AI is currently best viewed as a tool that helps humans make decisions as part of a collaborative supply chain. For now, it is not making critical decisions by itself.”

AI has many uses in supply chains, the report noted, including AI-based software that can help leaders make better, faster decisions by rapidly gathering and analyzing diverse data sets and then generating advice that is relevant and actionable.

“The focus on technology in supply chains is undeniable,” said John Paxton, CEO of MHI. ” But supply chains are run by people, and human-centricity is the key. A human focus on technology implementation encourages the kind of creativity and innovation that builds stronger, more streamlined operations. It also attracts new hires, retains current workers, and empowers team members to higher levels of safety and performance.”

This year's survey also found that while only 27% of participating supply chain organizations are currently using AI, 51% believe AI technologies will create a competitive advantage or disrupt their industry within the next 10 years.

“AI has the potential to create more resilient supply chains and transform the role of human workers in the space - creating a variety of new jobs and improving real-time decision-making and efficiency,” said Paxton.

You can download the complete report at mhi.org/publications/report.