Why Supply Chain Transparency And Sustainability Are So Important Right Now

Robots were everywhere last month at ProMat, a major material handling trade show, along with were autonomous guided vehicles, artificial intelligence, inventory and network optimization software and mobile technology.

Extended supply chain transparency and sustainability were frequently discussed in educational sessions and on the show floor.

Nearly three-quarters of supply chain leaders are increasing their supply chain technology and innovation budgets this year, according to the 2023 MHI Annual Industry Report, released at ProMat in collaboration with Deloitte. The report titled “The Responsible Supply Chain: Transparency, Sustainability, and the Case for Business” indicates that solutions for improved supply chain transparency and sustainability are getting top priority.

Supply chain companies face increasing pressure to become more environmentally responsible and sustainable. Nearly half of the survey respondents (48 percent) say they face increased pressure to adopt a more sustainable supply chain. This pressure comes from consumers, regulators, industry groups, traditional and social media and other stakeholders who expect brands and their supply chains to follow higher standards.

“Responsible supply chains must react in real-time to changing conditions, this requires actionable data, automation and automated decision-making,” said John Paxton, CEO of MHI. “Investments in automation and other digital solutions like IoT, advanced analytics and AI not only arm your operations with speed, accuracy, and improved visibility. These solutions enable the real-time decision-making and transparency necessary for reporting and improving performance up and down the responsible supply chain.”

The 2023 report, the tenth in a series of annual industry reports published by MHI and Deloitte, also revealed that hiring and retaining qualified workers (57 percent) and the talent shortage (56 percent) were the top supply chain challenges cited by survey respondents. This was followed closely by supply chain disruptions (54 percent), out-of-stock situations (52 percent) and customer demands (52 percent).