Report: 55% of Supply Chain Firms to Increase Tech Spending

A new report from MHI and Deloitte shows that 55% of supply chain leaders are increasing their investment in technology and innovation, with 60% planning to spend over $1 million in the coming years. The 2025 MHI Annual Industry Report, The Digital Supply Chain Ecosystem: Orchestrating End-to-End Solutions, outlines how companies prioritize digital tools to improve efficiency, visibility, and resilience.

“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.”

Key Tech Investments on the Rise Companies are investing in a wide range of technologies to enhance operations, with AI, cloud computing, and robotics leading the way. The report predicts the adoption of these technologies will rise significantly in 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 (AI) – 82% Internet of Things (IoT) – 77% Wearable and Mobile Technology – 72% Autonomous Vehicles and Drones – 64% 3D Printing – 57% Blockchain – 54% AI Adoption Expected to Nearly Triple Artificial intelligence is set to play an even larger role in supply chain operations. Currently, 28% of companies use AI, but another 54% plan to implement it within the next five years, bringing total adoption to 82% by 2029.

“AI is already making a difference in areas like inventory management, demand planning, and logistics,” said Paxton. “As the promise of agentic AI grows, high-quality data will be essential to drive efficiency and agility.”

Top Challenges Facing Supply Chains in 2025 Beyond technology, supply chain leaders cite inflation and economic uncertainty as the biggest hurdles. The report identifies five key trends impacting supply chains:

Inflation – 38% Economic uncertainty – 37% Workforce and talent shortages – 35% Supply chain agility and resiliency – 28% Inventory challenges – 25% Other major concerns include cybersecurity, real-time data access, and sustainability as companies work to streamline operations and future-proof their supply chains.

How Companies Are Preparing for the Future The report highlights real-world case studies of companies adopting AI, automation, and cloud computing to improve supply chain performance. It also includes recommendations for leaders on how to integrate digital tools without disrupting operations.

“Leaders must ensure seamless integration of all supply chain components to enhance efficiency and meet customer expectations,” said Wanda Johnson, Supply Chain Technology Fellow at Deloitte Consulting.

With digital transformation in full swing, businesses are betting big on technology to help them navigate economic uncertainty, improve operations, and stay ahead of shifting consumer demands.