Industry report predicts dramatic growth in supply chain tech with a 95% increase in spending

MHI yesterday announced the release of the sixth in a series of MHI Annual Industry Reports developed in collaboration with Deloitte Consulting LLP. The 2019 MHI Annual Industry Report, titled “Elevating Supply Chain Digital Consciousness,” provides new insights into trends and technologies that are having a dramatic business impact on supply chains and the people who run them.

Most respondents – eight out of 10 – think digital supply chains will become the leading model within five years and that investment in supply chain innovation will increase dramatically. According to survey, despite a trend of declining investment from 2015 to 2018, this year projected spending is expected to increase 95%.

Survey respondents reported increasing spending plans:

· 57% of respondents are planning new technology investments totaling more than $1 million over the next two years (up 10% over last year’s survey)

· 34% plan to spend more than $5 million

· 22% plan to spend more than $10 million

"The pace of supply chain innovation over the six years of our survey is truly astounding, creating real and measurable competitive advantage for early adopters,” said George Prest, CEO of MHI, in the release. “With supply chain complexity showing no signs of slowing, the risk of inaction is only growing. Leading manufacturing and supply chain executives agree that technology is the key to future success.”

The MHI report covers 11 technologies they say have potential to disrupt the industry, along with a look at their adoption rates and common barriers to adoption. The eleven technologies are:

·  Blockchain

·  Robotics and automation

·  Predictive analytics

·  Internet of Things

·  Artificial intelligence

·  Driverless vehicles and drones

·  Wearable and mobile technology

·   Inventory and network optimization

·   Sensors and automatic identification

·   Cloud computing and storage

·   3D printing

The top technologies respondents say can be a source of either disruption or competitive advantage are:

·   Robotics and automation (64 percent)

·    Predictive analytics (59 percent)

·    Artificial Intelligence (55 percent)

·    The Internet of Things (IoT) (52 percent)

·    Driverless vehicles & drones (51 percent)

Get the full report at MHI.