Supply Chain Organizations Still Struggling to Implement GenAI: Study

Despite escalating tariffs, labor shortages, and digital disruption, supply chain leaders are betting big on GenAI. Yet, a new report from Logility, conducted alongside Vanson Bourne, reveals that many organizations are still struggling to convert investment into impact.

“The past no longer has to define the future,” says Allan Dow, president of Logility. “However, leaders must close the gap between vision and execution, especially when it comes to unlocking GenAI’s transformative potential.”

Key takeaways:

·       While 97% of respondents say they are using some form of GenAI, only 33% are applying it to supply chain-specific use cases​.

·        Despite 63% of respondents claiming their operations are fully optimized with modern technologies, foundational performance metrics tell a different story: forecast accuracy averages just 48%, on-time-in-full (OTIF) hovers at 52%, and gross margin sits at 18%​.

• While 71% of organizations have fully funded transformation initiatives, 57% cite data quality as a barrier to AI adoption and 35% struggle to build a business case for AI technology investment.
• Legacy systems remain a drag on performance: 52% say on-premise platforms hinder progress, and only 38% plan to migrate to the cloud within a year.
• Top focus areas include transportation/logistics (39%), risk management (34%), and inventory optimization (31%). Yet only 18% are using GenAI for order fulfillment and 20% for scenario planning.
• Among users, 99% see potential to ease labor shortages, 56% say it accelerates onboarding, and only 20% expect it to reduce workforce size.
• Data security (43%) and lack of trust in GenAI outputs (40%) remain major adoption hurdles.