This week, MHI and Deloitte presented their annual survey, MHI Annual Industry Report 2023 – The Responsible Supply Chain: Transparency, Sustainability, and the Case for Business. Among other things, the report shows that 74 percent of the supply chain executives surveyed plan to increase their investments in supply chain technology and innovation in 2023.
90 percent of survey participants report that they plan to spend over 1 million USD, and 36 percent plan to spend over 10 million USD in this area. The planned investments will be directed toward, among other things, solutions for improved visibility and sustainability in the supply chain. The report predicts that these increased investments will grow dramatically in the following technologies over the next five years:
- Storage and Network Optimization 87 %
- Cloud Services 86 %
- Sensors and Automatic Identification 84 %
- Advanced Data Analysis 82 %
- Portable and Mobile Technology 80 %
- Robotics and Automation 78 %
- 3D Printing 75 %
- Artificial Intelligence 73 %
- Internet of Things 68 %
- Blockchain 68 %
- Driverless Vehicles and Drones 66 %
Technologies in which respondents intend to invest (percentage intending to invest within 1–3 years)
– Responsible supply chains must respond in real time to changing conditions; this requires high data quality, automation, and automated decision-making. Investments in automation and other digital solutions such as IoT, advanced data analytics, and AI not only enhance a business’s agility and visibility, but they also enable the real-time decision-making and transparency needed to improve performance both upstream and downstream in the supply chain,” says MHI CEO John Paxton.
Key Challenges
In this year’s survey, the top challenges were hiring and retaining qualified employees (57 %) and addressing the shortage of skilled personnel (56 %). The second most important challenge is managing supply chain disruptions (54 %). The survey shows that the labor shortage is driving companies to increase their investments in technology that reduces the need for repetitive, manual work. Forty-one percent of respondents say they are providing further training to their workforce to help them adapt to the new technologies being implemented.
Increased Focus on Sustainability
Half of the respondents in the survey (48 %) say they face pressure to develop a more sustainable supply chain. This pressure comes from several sources, including consumers, government agencies, industry organizations, traditional and social media, and other stakeholders. The survey shows that the primary focus areas for sustainability are electrification (40 %), natural resource management (29 %), water use (27 %), and the transition to renewable energy (27 %).
The findings of the 2023 report are based on survey responses from more than 2,000 production and supply chain leaders across a wide range of industries. 83 percent of the respondents hold senior positions such as CEO, COO, department head, and others. The participating companies vary in size, with 74 % reporting annual sales of more than $50 million and 8 % reporting $1 billion or more.
MHI is an international trade association that has represented the material handling, logistics, and supply chain industries since 1945. MHI members include manufacturers of material handling equipment—including warehousing and logistics—system integrators, third-party logistics providers, consultants, and publishers. Deloitte provides industry-leading audit, consulting, tax, and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500 and more than 5,000 private and mid-sized companies.
