41% of professionals with innovation budgets are making AI tools a prominent part of their approach

Kenco, a leading third-party logistics provider, today released the results of its 2025 Supply Chain Innovation survey, revealing inflationary concerns (68%) and labor shortages (50%) as key complexities supply chains hope to address with new innovations this year. Fifty-one percent of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand.

Many of these professionals have their sights set on artificial intelligence to automate time-consuming tasks. Forty-one percent are making AI a key part of their innovation strategy, with a third already leveraging it for data visibility, 29% for quality control and 26% for labor optimization.

Still, lingering concerns around how to effectively and securely implement AI are leading some companies to sidestep the technology altogether. More than a third - 35% - said they're largely prevented from using AI because of company policy, leaving an opportunity to streamline operations on the table.

"Avoiding AI entirely is no longer an option. Implementing it strategically can give supply chain-focused companies a serious competitive advantage," said Kristi Montgomery, Vice President, Innovation, Research & Development at Kenco. "Now's the time for organizations to explore and experiment with the tech, especially for automating data-heavy operations such as demand planning, shipping and receiving to optimize your operations and unlock true efficiency."

Among the survey's other top findings:

Professionals looking to adopt physical automation tools offered an essentially three-way tie for which technology will be most popular in the coming year: robotics (43%), sensors and automatic identification (40%) and 3D printing (40%).
When it comes to choosing a partner for supply chain innovation, professionals tend to err on the side of caution and select a proven developer - but they're not completely opposed to working with start-ups. Forty-five percent said they work with a mix of new and established developers, compared to 39% who work with established technologies only.
Professionals may rely on partners such as 3PLs for moving and storing goods, but they don't see these partnerships as an opportunity for innovation. Only 13% said their 3PL identified a need for innovation, and just 8% partnered with a 3PL to bring a technology to life.
"Don't be afraid to tap your 3PL for more than just managing your supply chain," Montgomery said. "Your logistics partners see your operations day in and day out, and they can bring a fresh perspective to potential inefficiencies. By working together, you can uncover innovations that benefit not only your relationship, but the broader supply chain."

For the full results from the 2024 Supply Chain Innovation survey, visit https://hubs.ly/Q0355lLF0. For more information about Kenco, visit https://kencogroup.com.

About Kenco

Kenco supplies integrated logistics solutions that include distribution, eCommerce fulfillment, comprehensive transportation management and material handling equipment services, and customized supply chain solutions - all designed for Operational Excellence. Kenco continues to be a leading 3rd party logistics provider in North America, building lasting customer relationships for 75 years. Kenco's focus is to support customers' business needs through connected solutions and to redefine third-party logistics by offering innovative solutions.