55% say they are increasing their investment in supply chain tech and innovation and 60% are planning to invest over $1 million
CHICAGO--(BUSINESS WIRE)--#Deloitte--A new report released today by MHI and Deloitte finds that 55% of supply chain leaders are increasing their supply chain technology and innovation investments with 60% saying they are planning to spend over $1 million. Nineteen percent plan to spend over $10 million.
This investment includes solutions for orchestrated, end-to-end solutions between tech and human workers, according to the 2025 MHI Annual Industry Report, “The Digital Supply Chain Ecosystem: Orchestrating End-to-End Solutions.” The report provides new insights into trends and technologies that are transforming supply chains and the priorities of the people who run them.
As a result of these increased investments, adoption of the 11 categories of technology covered in the report is predicted to rise over the next five years.
- Inventory and Network Optimization – 92%
- Cloud Computing and Storage – 91%
- Sensors and Automatic Identification – 88%
- Predictive Analytics – 87%
- Robotics and Automation – 83%
- Artificial Intelligence – 82%
- Internet of Things – 77%
- Wearable and Mobile Technology – 72%
- Autonomous Vehicles and Drones – 64%
- 3D Printing – 57%
- Blockchain – 54%
The 2025 report, the twelfth 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 an orchestrated way that maximizes performance gains while also empowering workers.
Today’s business environment is increasingly complex and volatile requiring a more integrated and agile approach to supply chain management. End-to-end supply chain orchestration, which seamlessly connects every stage of the supply chain, has emerged as a critical strategy for organizations to remain competitive.
“These are exciting times for the supply chain industry as we see the orchestration of technology and talent coming to the forefront,” said John Paxton, CEO of MHI. “The future of supply chains will center around striking the right combination of human talent and technology to enhance efficiency, transparency, and sustainability.”
AI Adoption is Surging
Adoption of artificial intelligence is expected to rise dramatically, with 28% reporting that it's in use today, and another 54% reporting that they plan to have it in use within 5 years, making the 5-year total nearly triple that of today at 82% by 2029.
AI is already adding value in a wide range of supply chain processes, from inventory management to demand planning to logistics. Moving forward, supply chain organizations will be increasingly leveraging AI to enhance all aspects of their operations. Agentic AI—which can operate independently without human guidance or oversight—specifically has the potential to quickly and proactively address disruptions, enhance forecasting precision, and improve overall visibility within the supply chain.
“As the promise of agentic AI for warehouse process automation, real-time inventory visibility, predictive maintenance, and demand forecasting grows, high-quality data will be essential to utilizing this technology to drive efficiency and agility. Additionally, predictable and ethical behavior from AI solutions will be a focus.” said Paxton.
Inflation and Economic Uncertainty Top the List of Key Trends Impacting Supply Chains in 2025
According to this year’s respondents, the top five most impactful supply chain trends are: inflation (38%); economic uncertainty (37%); workforce and talent shortages (35%); supply chain agility and resiliency (28%); and inventory challenges (25%).
The Next Five Tech-Specific Trends Shaping Supply Chains
In addition to the five trends noted above, this year’s survey identified five additional tech-specific trends that are having a major impact on supply chain strategy and operations.
These key tech trends are:
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Cybersecurity and Data Security
For many businesses, the supply chain is a leading source of cybersecurity risk—and with supply chains’ growing reliance on technology and digitization, data security is sure to become an increasingly vital issue. -
Demand for Real-Time Data
Lack of access to accurate, real-time data is an ongoing barrier to achieving the vision and benefits of supply chain digitization and end-to-end orchestration. -
Digitization and the Pace of Technology Adoption
The dizzying pace of technological change in supply chains can be daunting for supply chain leaders and professionals alike. Yet, the pace will likely only accelerate as supply chain operations embrace AI in the pursuit of improved visibility, transparency and efficiency. -
Ecommerce Growth
Ecommerce growth is showing no signs of slowing. This is driving companies to find new and better ways to anticipate changes in demand and fulfill orders more quickly and accurately. -
Sustainability
Although supply chain sustainability is not strictly a technical issue, it remains a high priority and strategic differentiator for many firms.
“Leaders must ensure seamless integration of all supply chain components to enhance efficiency and meet customer expectations to further drive innovation, reduce redundancies, and deliver superior value,” said Wanda Johnson, Supply Chain Technology Fellow, Deloitte Consulting.
The report also provides real-world case studies of digital supply chain technologies and recommendations for leaders to develop strategies to implement these innovations.
The findings of the 2025 report are based on survey responses from over 700 manufacturing and supply chain industry leaders from a wide range of industries at the end of 2024. Eighty-three percent of respondents hold executive-level positions such as CEO, Vice President, General Manager, Department Head, or Engineering Management. Participating companies range in size from small to large, with 53% reporting annual sales of more than $50 million, and 21% reporting $1 billion or more.
Download the complete report here.
About MHI
MHI is an international trade association that has represented the material handling, logistics, and supply chain industry since 1945. MHI’s over 970 members include material handling and logistics equipment and systems manufacturers, integrators, consultants, publishers, and third-party logistics providers. MHI offers education, networking, and solution sourcing for their members, their members’ customers, and the industry as a whole through programming and events. The association sponsors the ProMat and MODEX exhibitions to showcase the products and services of its member companies and to educate manufacturing and supply chain professionals. The Warehousing Education and Research Council (WERC) is a division of MHI and provides education and research to the warehousing, distribution, and logistics community.
ProMat 2025 is being held at Chicago’s McCormick Place from March 17-20.
About Deloitte
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 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s approximately 460,000 people worldwide connect for impact at www.deloitte.com.
Contacts
Carol Miller, CMO, MHI
cmiller@mhi.org