Supply Chain Outlook Report 2025 by Prologis – Summary and Key Insights
Prologis’ 2025 Supply Chain Outlook report, conducted by The Harris Poll, surveyed 1,025 business executives to explore the challenges and strategies in supply chain management. The study which included executives from various nations, highlights concerns over a ‘polycrisis’ of economic uncertainty, declining customer demand and climate change. The findings aim to provide insights for strategic planning and to help businesses navigate the complexities of the current global supply chain landscape. Let’s look at some key insights from this report.
Report Insights
- 81% of executives are concerned about the economic outlook while 79% are concerned about soft economic growth and customer demand.
- 78% are concerned about industry competitors and government regulation and 77% are concerned about labor shortages and geopolitical instability.
- Cybersecurity risks are the most significant supply chain challenge, cited by 50% of respondents.
- 85% of executives say regulatory and geopolitical pressures are accelerating the shift to sustainable supply chain solutions.
- 86% indicate that these pressures are influencing decisions about manufacturing and storage locations.
- 70% of executives find it difficult to identify rewarding supply chain investment opportunities.
- 74% of executives report that automation initiatives have not met corporate objectives while 72% report that AI and sustainability initiatives have also fallen short.
- 71% of executives feel pressured to transition to sustainable energy sources
- 87% plan to dedicate more capital to sustainable supply chain initiatives once economic constraints ease.
- 87% of executives believe adopting green real estate solutions is essential for sustainable supply chains.
- 77% of executives report labor shortages as a concern for 2025.
- 87% believe automation can significantly minimize labor-related issues.
- 80% of executives feel external pressure to adopt AI to stay competitive.
- AI is the top priority for supply chain management in 2025, chosen by 45% of executives.
- 81% say AI integration is important for supply chain management.
- 87% prioritize safeguarding supply chains against unforeseen disruptions.
- Only about 40% of executives feel prepared for cybersecurity attacks and regulatory changes.
Conclusion
The Prologis 2025 Supply Chain Outlook report reveals that global business executives are facing a complex array of challenges, including economic uncertainties, digital threats and sustainability pressures. While there is a strong push towards adopting advanced technologies like AI and automation, many companies are struggling to see tangible returns on these significant investments. The report emphasizes the need for strategic partnerships and agile solutions to navigate these challenges, enhance resilience, and ensure long-term success in an evolving global landscape. To download and read the full report by PMI, check out the official website here.
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