Research from Inspectorio reveals AI’s
potential to propel supply chain efficiencies, sustainability
efforts, and ensure regulatory compliance despite limited use by
companies today
Inspectorio, the leading global supply chain platform for
sourcing, sustainability, compliance, and quality, today announced
findings in an extensive report, “The State of the Supply Chain,”
which explores the challenges that brands, retailers, and suppliers
face in a changing economic and regulatory landscape.
Respondents highlighted the importance of understanding the
impact of modern technologies in solving problems of scale and
engagement in the supply chain, despite barriers that exist to full
adoption of these solutions. Drawing on survey responses and expert
interviews across industries, the report highlights technology’s
role in enhancing transparency and efficiency, the growing
importance of sustainable practices, the influence of regulatory
changes, and the financial dynamics affecting supply chains
globally.
Artificial intelligence drives increased efficiency despite
lacking widespread adoption
The survey found that 82% of supply chain professionals indicate
technology advancements will have a significant impact on the
supply chain over the next five years. Specifically, innovations in
AI and machine learning have led to notable advancements in quality
assurance, predictive analytics, and operational efficiency,
supporting improved decision-making and transparency.
Despite this, 77% of respondents indicated that AI is not yet
integrated into their supply chains. The current lack of AI-powered
tools was cited by 47% of respondents as the primary barrier,
highlighting a significant gap in the market for industry-specific
AI solutions. Restrictive IT policies were cited as the second
largest barrier to adoption (22%).
Unsurprisingly, the report found that companies utilizing AI
tools in their supply chains consistently rate the impact of the
technology more highly. AI-embracing retailers and brands position
themselves as leaders as they actively shape the future of supply
chain management, setting the pace for innovation across the
sector.
Technology innovation helps close sustainability gap between
retailers and factories
Currently, only 25% of respondents view sustainability as a
pivotal area for future innovation, indicating that recent
advancements have not yet penetrated the broader industry. Amid a
landscape still dominated by traditional practices, the potential
for significant disruption exists as sector-specific technologies
mature.
As early adopters of sustainability and transparency measures,
brands and retailers are spearheading leveraging technology to
enhance customer engagement and improve product traceability.
Meanwhile, factories and suppliers are prioritizing AI to enhance
operational efficiencies.
This disconnect underscores the different strategic priorities
between retailers and factories in their innovation efforts. While
only 14% of respondents currently see consumer demand for
transparency and ethical standards as a significant trend
influencing sustainability, AI has the chance to act as a catalyst
for a forthcoming shift towards more widespread sustainable
practices throughout the supply chain.
Companies are managing supply chain risk and regulatory
compliance through supplier diversification and technology
advancements
Driven by escalating regulatory compliance, 93% of survey
respondents indicated that compliance budgets have remained the
same or increased over the past two years. Additionally, 65% of
respondents rate recent regulatory changes as significant,
affecting both operational and compliance strategies.
With risk management, compliance pressures, and budget
constraints rated as the primary challenges facing the industry,
many professionals are managing risk through supplier
diversification, enabled by technology advancements. Diversifying
supplier bases not only addresses compliance pressures and budget
constraints, but it also acts as a pivotal strategy for risk
mitigation.
The strategic use of technology and diversification is described
in the report as essential in navigating the complexities of modern
supply chains, allowing businesses to better respond to
unpredictable challenges while maintaining high standards of
quality and operational scalability.
“As evidenced in the report, conflicting priorities exist
between increasing operational efficiency and spearheading
sustainability and traceability efforts at various points along the
production chain,” said Chirag Patel, CEO, Inspectorio. “The
current lack of AI adoption throughout operations highlights the
need for tailored solutions to create an effective roadmap to
navigate a dynamic and evolving supply chain.”
To learn more and access the full report, visit:
www.inspectorio.com/state-of-supply-chain-report-2024.
Survey Methodology
Inspectorio surveyed 144 professionals throughout the supply
chain industry, including experts, professors, on-the-field
personnel, executives and workers to ensure a diverse set of
perspectives. The distribution of respondents by industry is as
follows: Apparel & Footwear (56%), Home & Furniture (12%),
Food & Beverage (6%), Multi-Category Retail (6%), Outdoor &
Sports (1%) and Other (18%). The breakdown of respondents by
organization type is as follows: Factory (44%), Brand (22%),
Supplier (19%), Retailer (13%) and Other (2%).
About Inspectorio
Inspectorio is the leading AI-powered supply chain platform
optimizing performance, building resilience, and providing
intelligence across production chains for global brands, retailers,
and their multi-tier suppliers.
Our innovative platform seamlessly connects and digitizes supply
chain processes to optimize decision-making, while providing
real-time visibility and control over production chain
operations.
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version on businesswire.com: https://www.businesswire.com/news/home/20240522872412/en/
Abby Nelson Ketner Group Communications (for Inspectorio)
Abby.Nelson@ketnergroup.com