Supply Chain Leaders Bet Big On Tech To Navigate Uncertainty

Global supply chain leaders are ramping up investments in new technology to build more resilient and efficient systems, according to a new report from Blue Yonder.

The inaugural Supply Chain Compass report, based on a survey of nearly 700 senior supply chain executives in North America and Europe, reveals that over half of respondents (51%) have identified technology implementation as their top strategic priority over the next three years.

In an environment shaped by economic volatility, geopolitical instability, and rapid market shifts, supply chain leaders are seeking tools that can boost both speed and precision. A majority (89%) have allocated specific budgets for tech upgrades, with 61% planning to spend between $1 million and $10 million over the next five years.

“Technology is no longer a nice-to-have — it’s a foundational enabler of performance,” said Andrea Morgan-Vandome, chief innovation officer at Blue Yonder. “Leaders are embracing AI and visibility tools to make supply chains smarter and more resilient.”

The report highlights five key focus areas for leaders pursuing transformation: better demand planning and performance analytics (both 46%), investment in tracking and visibility solutions (45%), digital transformation (41%), and cost management (33%).

AI is already reshaping supply chain operations. Over 80% of leaders surveyed said outdated technology poses a risk to performance, while 74% agreed AI is actively changing how they operate. Traditional AI technologies like automation and predictive analytics are in wide use — but generative AI adoption still lags behind, with only 36% of leaders reporting current use or implementation.

Barriers to wider adoption include human-centered corporate values (51%), high costs of adoption, and competing strategic priorities such as inventory automation. Yet interest is growing, especially among transportation and order fulfillment businesses, 46% of which are exploring generative AI.

“Next-gen AI agents are becoming key not just for efficiency but for enabling sustainability goals,” Morgan-Vandome said.

The survey also reveals a strong link between sustainability-focused leadership and openness to innovation. Leaders who rank sustainability among their top three priorities are far more likely to be actively exploring technologies such as AI and end-to-end data connectivity.

As digital transformation accelerates, the message from Blue Yonder’s Compass report is clear: technology is the bedrock of modern supply chains, and forward-thinking leaders are already laying that foundation.

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