DC Velocity - May 2019

FOR WHAT SEEMS LIKE MORE THAN A DECADE, THESE pages have been filled with stories about the emergence of technologies that held great promise for transforming supply chain operations. Whether it was blockchain, drones, the Internet of Things, 3-D printing, artificial intelligence (AI), or robotics, it was clear these advances had the potential to usher in untold efficiencies. It was also clear they had yet to deliver on that promise.

Figuratively speaking, it seemed as if everyone in the profession was standing on a beach facing the open Atlantic. We knew there were some rogue waves out there beyond the hori-logistics and supply chain—but in a good way. The question was, when?

It took just a few hours on the show floor at ProMat ’ 19 in Chicago last month to realize the tide has indeed come in and these disruptive enabling technologies are now hitting the figurative shore.

While always a big show (in fact, the biggest logistics-focused trade show in the nologies they’d been reading about for years. It was clear the wave had hit the beach.

There was genuine exuberance about those new robotics projects that are taking the concept of automation to new heights. There was genuine awe among those who saw “ decisions” being made in nanoseconds by AI-powered systems.

There was so much exciting stuff on display that it was impossible to take it all in. Over three days, DC VELOCITY’s team of seven print and video journalists (the largest in the market!) conducted nearly 100 interviews and booth visits, yet we barely scratched the surface. There was so much happening and so many things to see, we could have doubled our team and there still would have been more innovations to explore.

The excitement over all these new technologies was also evi-
dent in the findings of the 2019 MHI Annual Industry Report,
which were presented at the Wednesday morning keynote
session. This year’s edition, titled Elevating Supply
Chain Digital Consciousness, represented the trade
group’s sixth annual study of emerging disruptive
technologies and innovations that are transform-
ing supply chains around the world. The survey
was conducted among 1,052 supply chain profes-
sionals by MHI and Deloitte Consulting LLP in
late 2018. (The report is available for download at
https://www.mhi.org/publications/.)

This year’s report indicated that not only are logistics and supply chain executives excited about these new technologies, but they also see tech as the key to future success. Eight out of 10 survey respondents believe digital supply chains will be the predominant model within five years.

What’s more, they are apparently going to back up that belief with dollars. The survey showed that investment in supply chain technology has reached an inflection point: After a four-year decline in tech spending from 2015 to 2018, the trend line has abruptly reversed course.

The report predicts a 95-percent increase in projected spending in 2019 over 2018. Some 57

percent of respondents are planning investments in new technology that will total more than $1

million over the next two years (up 10 percent over last year’s survey). Thirty-four percent plan to spend more than $5 million, and a full 22 percent plan to spend more than $10 million.