MHI last week released The 2017 MHI Annual Industry Report: Next-Generation Supply Chains - Digital, On-Demand and Always-On to provide an up-to-date perspective on emerging supply chain trends.

Completed in collaboration with Deloitte Consulting, the report reflects the views of 1,100 manufacturing and supply chain industry leaders.

This report provides updates on the eight innovative technologies MHI predicted would have the most potential to transform supply chains three years ago when this annual report was launched:
* Inventory and network optimisation tools
* Sensors and automatic identification
* Cloud computing and storage
* Robotics and automation
* Predictive analytics
* Wearable and mobile
* Autonomous vehicles, and
* 3D printing

This year's survey revealed the emergence of a ninth innovation, the Internet of Things (IoT), that has growing importance in the digital economy.

These technologies are working together to create next-generation supply chains that are digital, on-demand and always-on.

The report finds that digital supply chains will be the predominant model within five years.

Hiring and retaining a skilled workforce continues to be the biggest obstacle facing supply chain professionals, with 63% of respondents reporting the issue (up from 58% in 2016). Additionally, 50% say training their workforce to use new technologies is a top priority. Other significant challenges include customer demand for faster response times (55%) and customer demand for lower delivery cost (53%).

The report sees Smart City Logistics as an emerging trend. While 50% of survey respondents are aware of Smart City Logistics, only 6% say they have begun to collaborate with other companies and cities to utilise and develop supply chain innovations to create new opportunities for last mile delivery, urban distribution centres and logistics hubs.

The report concludes that supply chain leaders see advancements in the innovations and technologies as continued disruptors to the industry. Whether it be robotics, automation, IoT or drones, these leaders understand that the battle for the lion's share of the consumer's dollar will be fought supply chain vs. supply chain.

"Those organisations that can deliver on rising customer service expectations at efficient cost through competency and innovation in their supply chain operations
will be the winners," the authors observe.

The full report can be downloaded here.