35 percent have already incorporated robotics into logistics, leaving traditional supply chains behind.
Traditional supply chains will experience radical transformation by 2025, with automation increasingly driving supply chain efficiencies, according to the second annual MHI industry report. The study found that innovations including predictive analytics, 3D printing and wearable technologies are altering the supply chain landscape as workforce shortages intensify, and customer demands and competition are the driving forces behind the changes.
The report, “Supply Chain Innovation – Making the Impossible Possible” found that those companies that embrace the transformation will be the winners as their supply chains continue to face constant pressure to do more with less. Over half (51 percent) of 900 companies surveyed by logistics industry group MHI and Deloitte reported that robotics and other automation tech is the key to disrupting or competing in their industry—an increase from last year’s 39 percent.
“The speed at which supply chain innovation is being adopted – coupled with rising consumer expectations for anytime, anywhere service – is stressing traditional supply chains to near-breaking points,” explained George Prest, CEO of MHI, an international trade association that represents the material handling, logistics, and supply chain industry. “Companies that continue to use traditional supply chain models will struggle to remain competitive and deliver orders that are accurate and on-time.”
Most survey respondents said they plan spending of more than $1 million on emerging technologies in the next two years, with 12 percent saying they’ll invest more than $10 million and 3 percent planning to invest more than $100 million.
More than a third (35%) of survey respondents said they’ve already incorporated robotics into their logistics, and their ranks could increase to 74% in the next six to 10 years, according to the Wall Street Journal.
The report also highlights eight technologies that are redesigning the supply chain landscape, including: inventory and network optimization tools; sensors and automatic identification; cloud computing and storage; robotics and automation; predictive analytics; wearable and mobile technology; 3D printing; and driverless vehicles and drones.
“I believe that we are at the dawn of an innovation wave that will soon hit the material handling industry," says Scott Sopher, principal, Deloitte Consulting LLP. "The convergence of big data, faster and cheaper computer power, and the increasing demands of customers will likely accelerate the adoption of innovative products and services in the material handling industry.”
