Despite major challenges in the global macroeconomic environment, business leaders remain surprisingly optimistic about the prospects for technology adoption in supply chain management by 2024, according to research new by Economist Impact and DP World, announced at the recent World Economic Forum.

The main driver is businesses’ belief that technology will effectively transform supply chain resilience. Amid concerns about protectionism, global fragmentation and political instability, businesses are re-evaluating their supply chain risks and shifting toward dual supply chain and strategic supply chain strategies. dual supply chain strategy.

The fourth annual “Trade in Transition” study, commissioned by DP World and hosted by Economist Impact, surveyed the views of trade experts and senior executives across multiple sectors. different regions and sectors. This unprecedented period of transition involves both increased geopolitical risks, the urgent reality of climate change, and significant advances in technology.

The global survey of 3,500 corporate executives found that technologies that improve supply chain efficiency and resilience were a key source of motivation for business leaders when asked to evaluate the future of supply chains. future of global trade. At the core of this view is the widespread adoption of AI, with 98% of executives having used AI to revolutionize at least one aspect of their supply chain operations.

From solving inventory management problems and reducing trade costs to optimizing shipping routes, operators are taking advantage of AI integration. One-third of businesses are using AI to reduce overall commercial operations costs and similarly to enhance supply chain and resource planning. More than a third of companies consider increased use of digital tools to enhance inventory management as the most effective strategy in cutting overall trade and supply chain costs.

Businesses expect further increased technology adoption in 2024, a proactive approach that underscores a commitment to deploying innovation to navigate the evolving business landscape with efficiency and resilience higher. Of those surveyed, a third will focus on advanced automation and robotics to improve logistics efficiency; 28% will turn to blockchain to enhance traceability and data security; and 21% will use artificial intelligence, big data analytics and predictive analytics to gain real-time insights and script responses to disruptions.

In the new era of globalization, a landscape of rising geopolitical risks is shaping the contours of global trade as businesses strive to minimize risks in their supply chains. More than a third of companies are using business networking services to shape their trade and supply chains, while 32% are creating parallel supply chains or dual sourcing.

Additionally, more than a quarter are choosing fewer suppliers – up 16 percentage points from the previous year – as businesses weigh the benefits of consolidation against diversification and managing resilience.

​Generative AI (GenAI) has the potential to revolutionize supply chain management, logistics and procurement. The software tools provided by GenAI can handle much larger data sets than previous forms of machine learning and can analyze an almost limitless set of complex variables. GenAI can also learn and teach itself about the nuances of any company’s supply chain ecosystem, allowing the company to refine and enhance its analytics capabilities over time.

The list of opportunities from GenAI applications is extensive; can help ensure procurement and regulatory compliance, streamline and improve the efficiency of manufacturing production processes, or enable virtual logistics communication using virtual assistants to handle requests common sense and give quick feedback.

The use of AI is an issue that many businesses consider applying uniformly across the organization to avoid wastage and disconnection at some point. Core business processes need to be revisited and strategically redesigned to leverage GenAI effectively.