Supply Chain Leaders Prioritize Automation Through Robotics, Generative AI, And Machine Learning Technology To Manage Costs, Survey Finds

MIAMI--(BUSINESS WIRE)--#ROI--Nucleus surveyed over 1,700 supply chain management (SCM) leaders to evaluate current technology spending behaviors and anticipate future investments. The survey findings highlight a concern over escalating costs as the foremost challenge confronting supply chains, with 49 percent of surveyed companies citing cost increases as their primary challenge. To address these concerns, companies are prioritizing automation, with 58 percent having already integrated generative AI and machine learning into their supply chain operations and 50 percent of those who haven’t yet implemented smart robotics either planning to adopt or considering the implementation in the next year.

“More than half of survey respondents are already utilizing artificial intelligence, automation, or machine learning for at least one SCM application,” said Senior Analyst Samuel Hamway. “Adopting AI and other automation technologies is becoming essential for maintaining competitiveness, as it allows businesses to use adapt to supply chain shocks and rapidly shifting market conditions.”

Key takeaways highlighted in the report include:

• Productivity gains and employee redeployment. High-growth organizations—defined by a revenue growth of 20 percent or more over the past three years—are embracing automation to reduce personnel costs and reallocate workers to complex problem-solving and decision-making tasks that AI cannot perform, with 32 percent expecting to reduce headcount as a result of automation.

• Platform vs Point Solutions. Nucleus found 53 percent of organizations reported implementing a platform approach to their SCM technology ecosystem, as compared to 27 percent of organizations that take a point solution approach and 20 percent that take a manual approach.

• The rise of robotics. Despite facing natural resistance fueled by fears of job displacement, robotic technology delivers the greatest value when focused on automating tasks that are manual, repetitive, and error-prone, complementing the human workforce and freeing employees for more complex tasks that require human judgement.

To read the full Supply Chain Agility Survey Report, click here.

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