New research finds that 91% of global
organizations have found generative AI to be effective in
optimizing supply chain processes and decision-making
Blue Yonder, a leader in digital supply chain transformation,
today released the results of its 2024 Supply Chain Executive
survey, which polled global supply chain executives on their
businesses’ experiences with supply chain and logistics strategy
and operations over the last year. Overall, the overwhelming
majority (84%) of global businesses report experiencing supply
chain disruptions within the last year. In the U.S., that number
was in line at 85%, down slightly from 87% in 2023 and 88% in
2022.
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“Supply chain disruptions are still a major challenge for
businesses,” said Andrea Morgan-Vandome, Chief Innovation Officer,
Blue Yonder. “With a majority of global organizations reporting
disruptions in the last year, it’s clearer than ever that we need
innovative technology solutions to respond to those disruptions and
enable businesses to adapt with lasting resiliency.”
Companies Still Face Challenges Operating Supply Chains Due
to Disruptions and Rising Costs
Supply chain disruptions are still impacting businesses around
the world. Over the last year, disruptions were driven primarily by
the lack of availability of raw materials (48%), extended delivery
times from material suppliers (47%), lack of labor (44%) and lack
of availability on shipping vessels (41%). Globally, the most
common results of supply chain disruptions are delays for customers
(42%), stalled production (42%), and loss of compliance with new
regulations (39%). Within the U.S., a plurality (43%) of
respondents reported that supply chain disruptions resulted in
delays for their customers, down from 52% in 2023 and 58% in
2022.
Inflation has been a primary concern among supply chain
executives in recent years and impacts numerous business areas.
This year, 36% of U.S. organizations cited cost of materials as the
area most impacted by inflation (down from 43% in 2023). On a
global scale, respondents reported transportation (38%) and cost of
materials (34%) as the business areas most impacted by rising
costs.
The combination of disruptions and inflation has resulted in
lower profit margins for many businesses. Most organizations (60%)
in the U.S. reported decreased profit margins over the last year,
the highest percentage of any of the regions surveyed. Globally,
46% of organizations’ profit margins fell amid rising costs.
Supply Chain Executives Focus on AI and Sustainability
Investments
In response to these challenges, many supply chain executives
are pursuing strategic investments – particularly in AI and
sustainability. Nearly 8 out of 10 global organizations (79%)
increased their investments in supply chain operations, and only 4%
reduced investments. Globally, 51% of companies invested more than
$10 million in supply chain investment. In the U.S., these
investments are growing at a quick rate, with 49% of organizations
investing more than $10 million in supply chains, compared to 38%
in 2023 and 24% in 2022. For 48% of global organizations,
sustainability is the key area of investment, followed by AI-based
technology (41%), developing new strategy (40%), additional
workforce (39%), and digital transformation (37%).
The U.S. leads global sustainability investment, with 55% (up
from 42% in 2023 and 43% in 2022) of organizations focused on
improving efforts in that area. This is compared to 27% for UK
companies, 49% for DACH countries, and 46% for France/BENELUX. For
U.S. organizations, the key areas of focus for maximizing
sustainability throughout the supply chain are improving
transportation efficiency (59%), reducing waste and excess (57%),
and improving supplier sustainability and reporting (53%).
“It’s encouraging to see the upward trend of sustainability
investment in the U.S. over the last two years,” said Saskia van
Gendt, chief sustainability officer at Blue Yonder. “This trend is
reflective of increased global demand for improved sustainability,
especially in the U.S., where sustainability hasn’t been as much of
a key focus compared to other regions.”
“Only 2% of respondents identified sustainability as their
primary role within their company, but sustainability still rose to
the top as a key investment,” said van Gendt. “This is likely a
signal that supply chain roles are increasingly responsible for
driving the sustainability of the overall business.”
As the second-most common supply chain investment, AI has been
widely adopted by organizations around the world. Over half of
global organizations are applying AI to supply chain planning
(56%), transportation (53%), and order management (50%). And amid
the rise of generative AI, most global organizations (80%) have
implemented this technology in their supply chains at some level,
whether fully (12%), partially (33%) or piloted (35%). Generative
AI is also having an overwhelmingly positive impact: 91% of global
organizations find generative AI to be effective in optimizing
supply chain processes and decision-making.
“Companies are realizing the power of AI and generative AI on
their supply chains. This technology is changing the way companies
plan their supply, react to changes in demand, and pivot through
disruptions. To truly digitally transform your supply chain means
incorporating AI to stay ahead and meet your business objectives,”
said Morgan-Vandome.
Supply chain investments continue to drive efficiencies for
businesses. In the U.S., 61% of organizations reported improved
efficiencies because of supply chain investments, compared to 54%
in 2023. Supply chain investments are also driving expanded market
share in the U.S. (39% in 2024, 21% in 2023), increased revenue
growth (38% in 2024, 39% in 2023) and fewer disruptions (41% in
2024, 42% in 2023).
Blue Yonder executives will discuss these topics and more at
ICON 2024, the premier conference for supply chain professionals,
May 13 – 16, in Dallas. Click here to register and learn more about
the event.
Research Methodology
Blue Yonder’s 2024 Supply Chain Executive Survey was fielded by
a third-party provider and conducted from March 1-15, 2024.
Responses were collected from more than 600 C-suite and senior
executives across manufacturing, retail, third-party logistics, and
government, with responsibility for supply chain strategy,
planning, logistics and manufacturing operations in the U.S., UK,
DACH (which includes Germany, Austria and Switzerland), and
France/BENELUX (which includes Belgium, the Netherlands, and
Luxembourg).
Additional Resources
- Learn more about the 2024 Supply Chain Executive Survey results
via the infographic and e-book
About Blue Yonder
Blue Yonder is the world leader in digital supply chain
transformation. Global retailers, manufacturers and logistics
providers leverage Blue Yonder to optimize their supply chains from
planning through fulfillment, delivery and returns. Blue Yonder’s
AI-embedded, interoperable supply chain solutions are connected
end-to-end via a unified platform and data cloud, enabling
businesses to collaborate in real time across functions, which
supports more agile decision-making, improved customer
satisfaction, profitable growth, and more resilient, sustainable
supply chains. Blue Yonder – Fulfill your Potential™
blueyonder.com
“Blue Yonder” is a trademark or registered trademark of Blue
Yonder Group, Inc. Any trade, product or service name referenced in
this document using the name “Blue Yonder” is a trademark and/or
property of Blue Yonder Group, Inc. All other company and product
names may be trademarks, registered trademarks or service marks of
the companies with which they are associated.
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Blue Yonder Public Relations Contacts: Marina Renneke,
APR, Global Corporate Communications Sr. Director Tel: +1
480-308-3037, marina.renneke@blueyonder.com
Rossella Benti, EMEA Corporate Communications Director Tel: +39
335 7849149, rossella.benti@blueyonder.com