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Logility Finds Gaps, Gains in GenAI Supply Chain
[ May 1, 2025 // Gary Burrows ]Despite escalating tariffs, labor shortages and digital disruption, supply chain leaders are betting big on GenAI. Yet, a new report reveals that many organizations are still struggling to convert investment into impact.
Logility, an AI-driven supply chain management leader, recently released its Supply Chain Horizons 2025 Market Report: Navigating the Digital Transformation and GenAI Journey in Supply Chain, which provides insights from 500 supply chain executives across the U.S., U.K., Germany, Austria, Switzerland, Australia, and India. These respondents represent companies with a minimum of US$500 million in annual revenue.
“The past no longer has to define the future,” said Allan Dow, president of Logility, an Aptean company, that provides AI-first supply chain management solutions. “However, leaders must close the gap between vision and execution, especially when it comes to unlocking GenAI’s transformative potential.”
The research, conducted alongside Vanson Bourne, an independent specialist in market research for the technology sector, explores how organizations use GenAI, where they are seeing results, and what’s standing in the way of transformation.
The findings paint a clear picture of both promise and pause in adoption: while 97 percent of respondents say they are using some form of GenAI, only 33 percent are applying it to supply chain-specific use cases.
Despite 63 percent of respondents claiming their operations are fully optimized with modern technologies, foundational performance metrics tell a different story: forecast accuracy averages just 48 percent, on-time-in-full hovers at 52 percent, and gross margin sits at 18 percent.
Key insights from the report:
• Digital transformation Is advancing, but gaps remain. While 71 percent of organizations have fully funded transformation initiatives, 57 percent cite data quality as a barrier to AI adoption and 35 percent struggle to build a business case for AI technology investment.
• Cloud adoption lags ambition. Legacy systems remain a drag on performance: 52 percent say on-premise platforms hinder progress, and only 38 percent plan to migrate to the cloud within a year.
• GenAI priorities are clear: but execution Is limited. Top 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.
• GenAI’s workforce promise Is strong. Among users, 99 percent see potential to ease labor shortages, 56 percent say it accelerates onboarding and 20 percent expect it to reduce workforce size.
• Security and trust still pose barriers. Data security (43 percent) and lack of trust in GenAI outputs (40 percent) remain major adoption hurdles.
The report emphasizes the urgency for leaders to modernize outdated processes, accelerate cloud adoption, and prioritize GenAI experimentation. It cautions that reliance on legacy systems and manual tools like Excel (still used by 55 percent of respondents) continues to hinder progress.
It also highlights Agentic AI – autonomous AI capable of decision-making and execution – as an emerging force with long-term implications. Yet despite rising disruption and tariff uncertainty, many organizations still underinvest in GenAI for high-impact areas like scenario planning and order fulfillment. This is particularly striking given that 100 percent reported fulfillment challenges, and most can only forecast one week out.
“The window for creating competitive advantage is still open – but not for long,” Dow said. “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.”
The survey was conducted by Vanson Bourne in January-February. Participants represent a cross-section of industries and roles, all responsible for their organization’s supply chain operations.
The full report is available here (https://tinyurl.com/4crakud2).
