65% of supply chain, logistics firms plan more tech investment: Survey

03 Mar '23

2 min read

Pic: Shutterstock

Fifty-nine per cent of companies accelerated the pace of innovation investment and deployment over the last two years, according to a survey of 1,000 supply chain and logistics decision-makers across nine European countries, Canada and the United States. Moreover, 65 per cent of the companies plan to raise their technology spending over the next two years.

However, 87 per cent indicated they still face internal inhibitors to supply chain and logistics innovation, the survey, conducted by Canada-based Descartes Systems Group, which unites logistics-intensive businesses in commerce, found.

The survey examined how technology innovation is changing supply chain and logistics operations and executives’ plans for continued investment.

Over half of the respondents said they use a mix of internal and external resources to develop innovative supply chain technologies (55 per cent) and strategies (52 per cent).

Management focus, better financial support and a more stable workforce are critical for accelerating supply chain and logistics innovation. Conversely, a lack of senior management support and financial wherewithal and higher employee turnover are significant inhibitors to fostering innovation, the survey found.

Fifty-five per cent of the companies surveyed have a defined environmental, social and governance (ESG) strategy, but only 30 per cent also have an action plan and funding in place.

“The study shows that, while efforts in supply chain and logistics innovation are accelerating, many companies are relatively early in their innovation journey in areas such as digitisation and especially in the use of advanced computing technologies such as machine learning,” said Chris Jones, executive vice president, industry and services at Descartes, in a release.

Fibre2Fashion News Desk (DS)

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