Supply Chain Horizons 2025 Market Report: Navigating the Digital Transformation and GenAI Journey in Supply Chain
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., DACH, Australia, and India. These respondents represent companies with a minimum of $500 million in annual revenue.
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% 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%.
“The past no longer has to define the future,” said 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 Insights from the Report:
- Digital Transformation Is Advancing—But Gaps Remain: 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.
- Cloud Adoption Lags Behind Ambition: 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.
- GenAI Priorities Are Clear—But Execution Is Limited: 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.
- GenAI’s Workforce Promise Is Strong: Among users, 99% see potential to ease labor shortages, 56% say it accelerates onboarding, and only 20% expect it to reduce workforce size.
- Security and Trust Still Pose Barriers: Data security (43%) and lack of trust in GenAI outputs (40%) 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% 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% reported fulfillment challenges and most can only forecast one week out.
“Trying to execute new supply chain technologies in old ways is a recipe for failure,” said Allan Dow, President of Logility. “The window for creating competitive advantage is still open—but not for long. 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 Supply Chain Horizons 2025 survey was conducted by Vanson Bourne in January–February 2025. Participants represent a cross-section of industries and roles, all responsible for their organization’s supply chain operations.
To access the full report, visit: https://www.logility.com/white-papers/sc-horizons-2025-market-report/
About Logility
Logility, an Aptean® company, is a market-leading provider of AI-first supply chain management solutions engineered to help organizations build sustainable digital supply chains that improve people’s lives and the world we live in. The company’s approach is designed to reimagine supply chain planning by shifting away from traditional “what happened” processes to an AI-driven strategy that combines the power of humans and machines to predict and be ready for what’s coming. Logility’s fully integrated, end-to-end platform helps clients know faster, turn uncertainty into opportunity, and transform supply chain from a cost center to an engine for growth. With over 500 clients in 80 countries, the company is headquartered in Atlanta, GA. Learn more at www.logility.com.
About Aptean
Aptean is a global provider of industry-specific software that helps manufacturers and distributors effectively run and grow their businesses. Aptean’s solutions and services help businesses of all sizes to be Ready for What’s Next, Now®. Aptean is headquartered in Alpharetta, Georgia and has offices in North America, Europe and Asia-Pacific. To learn more about Aptean and the markets we serve, visit www.aptean.com.
Logility is a Registered Trademark of Logility, Inc., an Aptean company. Aptean and Ready for What’s Next, Now are Registered Trademarks of Aptean, Inc. All other company and product names may be trademarks of the respective companies with which they are associated.
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“The past no longer has to define the future,” said 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.”
