New Survey Reveals Growing Executive Focus on
Sustainability, Automation, and AI in Supply Chains
SAN
FRANCISCO, Oct. 1, 2024 /PRNewswire/ -- The
2025 Prologis Global Supply Chain Outlook report reveals
that business leaders across multiple sectors are preparing for
what experts are now calling a 'polycrisis'—a convergence of
economic instability, fluctuating customer demands and pressing
climate challenges. Conducted by The Harris Poll, this exclusive
annual survey of more than 1,000 business executives in the U.S.,
U.K. and Germany underscores the
critical need for nimbleness and resilience as companies navigate
mounting challenges.
Sleepless Nights Over Supply Chain Pressures
From post-pandemic shocks to ongoing logistics bottlenecks,
supply chains are being tested on multiple fronts. Two-thirds of
executives surveyed (66%) indicated they lose sleep about supply
chain issues, highlighting the significant stress these conditions
create:
- 86% of executives: "Rising economic and geo-political pressures
are driving decisions on where to manufacture and store
goods."
- 71% of executives: "I am under pressure to transition energy
sources."
- 70% of executives: "It is difficult to identify where to
allocate supply chain investment for maximum return."
"Supply chain capabilities are crucial for business success, and
the ability to anticipate and swiftly adapt to rapid changes is key
to thriving," said Hamid R.
Moghadam, co-founder and CEO, Prologis. "In today's
complex and interconnected world, disruptions create ripple effects
that can reshape industries and have lasting consequences on global
operations."
Sustainability & Shaping the Future
Sustainability, prompted by shifting stakeholder values and
increased competition for energy resources, has become a top
priority for supply chain leaders. According to the report, 85% of
executives now regard sustainability as a core business objective,
recognizing that green initiatives represent not just a compliance
necessity, but a competitive edge in today's marketplace.
"With nearly three-fourths of executives feeling the urgency to
accelerate the shift to alternative energy sources, supply chain
leaders are pressed to implement faster and more sustainable
solutions," stated Susan Uthayakumar, chief
sustainability and energy officer at Prologis. "Companies that
prioritize sustainable solutions today are positioning themselves
for greater resilience and competitiveness in the future."
Companies are racing to adapt as regions tighten emissions
targets and other environmental regulations. As requirements
evolve, many leaders are now making strategic decisions based on
their ability to meet sustainability goals. In fact, 79% of
executives agreed with this statement: "The pace at which we're
transitioning to alternative energy sources feels too slow for me;
I believe we will need to speed up in the next 24 months."
Automation: The Driving Force Behind Supply Chain
Improvements
Automation has emerged as a key tool for companies looking to
streamline their supply chain operations, reduce costs and boost
productivity. Automation is particularly transforming logistics
operations. Executives are increasingly relying on automated
solutions to improve safety while increasing productivity and
reducing operating costs.
While qualified labor shortages contribute to the push for
automation, businesses are also driven by the need to ensure
continuity, improve efficiency and accelerate speed-to-market. In
fact, 87% of executives agreed with this statement: "Investing in
automation solutions in the supply chain will significantly
minimize labor-related issues (i.e., lessen burnout, reduce labor
shortages)."
Artificial Intelligence: Shaping the Future of Supply Chain
Innovation
Artificial Intelligence (AI) plays an essential role in
executive's ability to respond proactively to rising economic and
geo-political pressures. AI is being used in more advanced areas
such as demand forecasting, real-time data analysis and risk
mitigation. It allows businesses to anticipate market shifts, plan
for alternative scenarios and respond to disruptions more
effectively.
Executives are increasingly looking to AI for predictive
insights, with 80% saying, "There is a lot of external pressure to
adopt AI practices to stay competitive in the industry." However,
94% experience challenges preventing them from adopting AI,
including security concerns, data quality, change management and
complexity of implementation.
"AI's promise is to help organizations predictively react to
supply chain pressures, including by calibrating customer demand,
anticipating disruptions and responding in real-time," remarked
Chris Caton, managing director,
Global Strategy and Analytics for Prologis. "AI will enable
businesses to respond more swiftly to change, whether its
disruptions or evolving consumer habits, helping them stay ahead in
a rapidly shifting landscape."
Preparing for the Unexpected
As natural disasters, regulatory shifts and unexpected political
events loom, executives acknowledge that agility is crucial for
determining whether their companies can thrive or falter. In fact,
preparing for unforeseen 'black swan' events is a top priority for
87% of them.
The majority of executives acknowledge their vulnerability to
unexpected disruptions and agree there is room to improve. Only
about four in 10 executives feel adequately prepared for challenges
like cybersecurity attacks (42%), technological disruptions (41%),
regulatory changes (40%) and labor market fluctuations (39%), with
even fewer ready for trade wars (36%) or global pandemics (34%).
This realization has prompted a reassessment of risk management
strategies, emphasizing the need for flexibility and redundancy in
supply chains.
Looking Ahead: The Future of Supply Chain
Transformation
Prologis' 2025 Global Supply Chain Outlook report unveils the
transformative and strategic shifts organizations are undertaking
to confront evolving challenges. The integration of AI (81%),
automation (81%), intelligent data analytics (80%) and
sustainability (79%)—all deemed essential by executives—is set to
revolutionize supply chain management.
Emerging technologies such as cloud solutions and IoT-enabled
monitoring, are poised to enhance data management and facilitate
real-time tracking. These innovations will streamline logistics and
bolster agility, enabling organizations to swiftly adapt to
changing market conditions.
You can find more details and download the Prologis 2025 Global
Supply Outlook report here.
Survey Methodology
This survey was conducted by The Harris Poll on behalf of
Prologis from September 4th to 19th,
2024, among a sample of 1,025 business executives who play
pivotal roles in their organizations. The study includes insights
from 508 U.S. executives, 263 U.K. executives and 254 German
executives, offering a diverse international perspective on the
challenges and opportunities shaping supply chain management today
and in the future. The survey includes respondents from companies
with over 250 employees, and a third of participants work at
organizations with annual revenues exceeding $2 billion. This online survey is not based on a
probability sample, and therefore no estimate of theoretical
sampling error can be calculated.
About Prologis
Prologis, Inc. is the global leader in logistics real estate
with a focus on high-barrier, high-growth markets. At June 30, 2024, the company owned or had
investments in, on a wholly owned basis or through co-investment
ventures, properties and development projects expected to total
approximately 1.2 billion square feet (115 million square meters)
in 19 countries. Prologis leases modern logistics facilities to a
diverse base of approximately 6,700 customers principally across
two major categories: business-to-business and retail/online
fulfillment.
About The Harris Poll
The Harris Poll is one of the longest-running surveys in the
U.S., tracking public opinion, motivations, and social sentiment
since 1963, and is now part of Harris Insights & Analytics, a
global consulting and market research firm that delivers social
intelligence for transformational times. We work with clients in
three primary areas: building 21st-century corporate reputation,
crafting brand strategy and performance tracking, and earning
organic media through public relations research. Our mission is to
provide insights and guidance to help leaders make the best
decisions possible. To learn more, please visit
www.theharrispoll.com
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SOURCE Prologis, Inc.
