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The latest MHI Annual Industry Report reveals the technologies driving supply chain transformation, as well as the objectives of supply chain leaders. From Inflation to Sustainability: Top 10 Trends Impacting Supply Chains
T he 2025 MHI Annual Industry Report, “The Digital Supply Chain Ecosystem: Orchestrating End- to-End Solutions” offers insights into technologies driving supply chain transformation, as well as the objectives of supply chain leaders. When asked which current trends have the greatest impact on their supply chains, leaders put inflation concerns at the
will struggle to make data-driven decisions that optimize inventory, respond to shifting demands and risks, and improve efficiency. 8. Digitization and the Pace of Technology Adoption. The frantic pace of technological change in supply chains will likely accelerate as more operations embrace AI for better visibility, transparency, and efficiency. Keeping up with the latest developments will become even more challenging
and actionable data generated by technology can help. 5. Inventory Challenges. Finding ways to maintain larger volumes of safety stock, manage higher associated costs, and improve demand forecasting accuracy in uncertain economic times is contributing to supply chain complexities. Rounding out the list of top 10 trends impacting supply chains are five technology specific developments identified by survey respondents. They include: 6. Cybersecurity and Data Security. Supply chains are already a leading source of cybersecurity risk. Their greater reliance on technology and digitization will make data security ever more vital. Threat agents will also leverage AI to launch progressively more sophisticated phishing, deepfake, and ransomware attacks. 7. Demand for Real-Time Data. Lack of access to accurate, real-time data is an ongoing barrier to achieving end-to-end supply chain orchestration. Without real- time data visibility, supply chain leaders
and important. 9. Ecommerce Growth. Online shopping exploded in popularity during the pandemic and continues to expand. Supply chains are seeking ways to harness the power of technology— especially AI—to more accurately anticipate customer needs, manage inventories, and accelerate delivery. 10. Sustainability. Technology advances are helping operations worldwide become more sustainable, but many firms struggle with data issues. That makes accurate reporting of Scope 3 emissions difficult. Although AI can help, ironically it requires tremendous amounts of energy. The report is available for free at mhi.org/publications/report.
top of the list for the second year in a row with 38% of leaders citing inflation- driven costs as the top trend impacting operations and investments. After inflation, the next four most impactful external forces facing supply chains are: 2. Economic Uncertainty. Driven by rising geopolitical tensions and trade restrictions, both domestically and globally, unease about policy revisions has businesses on edge. 3. Workforce and Talent Shortages. Due to the ongoing decline in supply chain labor force participation, companies are increasingly looking to technology and automation to compensate—along with developing and Resiliency. Amid growing complexities and increased vulnerabilities resulting from continued expansion of product portfolios and supplier networks across manufacturers, organizations must focus on identifying and mitigating potential points of failure. The real-time visibility deploying reskilling strategies. 4. Supply Chain Agility and
–By John Paxton
Interested in learning more about applying digital technologies throughout supply chains to orchestrate streamlined, end-to-end decision-making? Make plans now to attend MODEX 2026, April 13-16 at Atlanta’s Georgia World Congress Center. Learn more and register for free admission at modexshow.com .
Chief Executive Officer MHI mhi.org
16 Inbound Logistics • November 2025
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