Artificial intelligence and automation are set to dominate supply chain transformation, according to the 2026 MHI Annual Industry Report, as organisations shift from experimentation to scaled deployment.
Based on a survey of more than 500 supply chain professionals, the report shows 48 per cent of respondents rate AI as having a significant or greater disruptive impact, with a further 24 per cent describing it as transformational. Robotics and automation follow, with 39 per cent citing significant disruption.
Adoption is already underway, with 53 per cent of organisations using AI today and uptake expected to rise sharply over the next five years. Key use cases include demand and inventory optimisation (33 per cent), predictive maintenance (30 per cent) and transport optimisation (26 per cent).
However, progress is being constrained by persistent barriers. Building a clear business case remains the top challenge for AI adoption, cited by 20 per cent of respondents, while 29 per cent point to budget constraints as the primary hurdle for robotics and automation.
Workforce pressures continue to weigh on the sector, with 90 per cent of organisations reporting talent shortages, and nearly two-thirds classifying the issue as a major challenge.
Externally, economic uncertainty and inflation rank as the top trends impacting supply chains, followed by workforce shortages, the pace of technology adoption, and the need for greater visibility and resilience.
Investment is becoming more disciplined. While 56 per cent of organisations plan to increase supply chain technology spending, the focus is shifting toward targeted, ROI-driven initiatives rather than large-scale transformation programs.
The report concludes that competitive advantage will depend on how effectively organisations integrate AI, automation and analytics into end-to-end operations, rather than deploying isolated technology pilots.
Global air cargo networks adapt to Middle East airspace closures, rerouting through alternative hubs and longer paths, impacting cost, time, and trade.
The infrastructure supporting air freight handling at airports has long been neglected. There are answers but funding is an issue.
Rising oil prices affecting air freight and blocks to shipping routes are forcing Asian logistics firms to rethink plans and absorb losses
Flights in Europe could start to be cancelled from the end of May due to a lack of jet fuel
belly cargo decreased by 8%, mainly due to cancelled passenger flights to the Middle East.
The jet fuel crisis is no longer a short-term disruption. Even if geopolitical conditions stabilise, the structural impacts on fuel supply chains, refining capacity and global...
Air cargo exports from APAC declined -3% WoW to Europe and -1% to USA.
China achieved a new milestone in making large-scale unmanned transport equipment as the domestically-developed HH-200 successfully completed its maiden flight on Wednesday.
Air freight rate levels from India to the Middle East have begun to moderate as airline schedules regain some normality, according to industry sources.
ALS