LeanDNA has officially published the findings from its survey conducted by Wakefield Research, a survey which focused on gauging the role of AI, digital synchronization, and proactive logistics in driving supply chain growth.
Going by the available details, the study took into account opinion of 100 C-level U.S. executives, along with 100 U.S. supply chain leaders, who all came together to double down on the importance of these technologies, while simultaneously highlighting the consistent divergence in risk perception.
As for the results, a larger chunk of surveyed executives (92%) and supply chain leaders (100%) agreed that AI-driven insights are essential for predicting and preventing disruptions. This translates to high optimism for ROI, with most (87% of executives, 89% of supply chain leaders) expecting a positive return on AI and machine learning investments within one to two years.
In fact, 39% of executives and 34% of supply chain leaders anticipate ROI at a far earlier stage.
Next up, we must dig into how C-Level executives are especially bullish on the immediate and near-term ROI from AI. We get to say so because these executives are 60% more likely to say they have already seen positive ROI or expect to achieve the same in next 6 months than supply chain leaders (24% of executives, 15% of supply chain leaders).
Another detail worth a mention is rooted in how more and more supply chain leaders across the board are banking upon AI and machine learning. To break it down on more concrete level, 50% of the given supply chain leaders deemed that as their top strategy for improving reliability. Looking past the given point, other key initiatives would include diversifying the supplier base (45%), implementing supply network synchronization (39%), and upgrading data infrastructure (39%).
Almost like an extension of that, many companies are also actively transitioning towards full digital supply chain synchronization, as 57% of executives and 51% of supply chain leaders reported steady progress in this regard. Having said so, 100% synchronization remains largely elusive in the wider scheme of things, achieved by only 19% executives and 18% of supply chain leaders.
Markedly enough, both the groups further acknowledge the risks associated with delaying supply chain innovations. These risks are presently understood to include production disruptions, market fluctuation responsiveness, inventory costs, reputational damage, regulatory compliance, and competitive disadvantage.
Out of the entire contingent, executives were found to be the most concerned about production disruptions (53%), whereas on the other hand, supply chain leaders are said to prioritize inventory costs (53%), reputational damage (53%), and regulatory compliance (50%).
For the future, though, companies revealed a need to shift from reactive to proactive logistics planning. This was evident in the fact that majority of executives (77%) and supply chain leaders (78%) believe their organization’s supply chain logistics must be more proactive to maximize growth. Against that, no more than a small fraction said their logistics are already sufficiently proactive.
“The C-suite and supply chain agree that supply chain professionals and business leaders expect gains from investing in AI tools, digital synchronization, and optimization. However, it also shows that they differ in what they are most concerned about if improvements are delayed. Getting in synch on the risks and reducing friction between the two groups will allow their companies to grow faster,” said Andy Ellenthal, CEO of LeanDNA.
