Fresh data revealing executive sentiment from Logility, an AI-driven supply chain management solution provider, revealed that while 63 percent of industry leaders claim their operations are “fully optimized” with the latest tech, “foundational performance metrics tell a different story,” researchers said in their report.
The research showed that forecast accuracy averages about 48 percent while on-time-in-full (OTIF) sits at 52 percent, and gross margin at 18 percent.
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With generative AI, 97 percent of those polled said they are using some form of it, but only 33 percent noted that are applying it to supply chain-specific use cases .
The underpinning theme of the report, titled, “Supply Chain Horizons 2025 Market Report: Navigating the Digital Transformation and GenAI Journey in Supply Chain,” was that as supply chain leaders highly favor technologies such as generative AI, their companies are having a hard time with implementation.
The data was culled from 500 supply chain executives across the U.S., U.K., DACH, Australia and India. Those polled represent companies that have a minimum of $500 million in annual revenue. Vanson Bourne provided support on the research.
Allan Dow, president of Logility, said the “past no longer has to define the future. However, leaders must close the gap between vision and execution, especially when it comes to unlocking GenAI’s transformative potential.”
Other notable takeaways from the 39-page report include that 71 percent of organizations polled saying they have fully funded transformation initiatives. Even so, 57 percent of respondents cited data quality as a barrier to AI adoption while 35 percent said they struggle to build a business case for AI technology investment.
Meanwhile, the research showed that legacy technology systems “remain a drag on performance” with 52 percent of those polled saying “on-premise platforms hinder progress, and only 38 percent plan to migrate to the cloud within a year.”
When asked about generative AI use and priorities, focus areas include transportation/logistics (39 percent), risk management (34 percent) and inventory optimization (31 percent). “Yet only 18 percent are using GenAI for order fulfillment and 20 percent for scenario planning,” the report’s authors said.
“The report emphasizes the urgency for leaders to modernize outdated processes, accelerate cloud adoption and prioritize GenAI experimentation,” the authors of the report said. “It cautions that reliance on legacy systems and manual tools like Excel (still used by 55 percent of respondents) continues to hinder progress.”
“Trying to execute new supply chain technologies in old ways is a recipe for failure,” Dow said. “The window for creating competitive advantage is still open — but not for long. With the right tools, a little courage, and a lot of heart, supply chain leaders who embrace GenAI and rethink their processes will be able to define the future—not just react to it.”