Traditional supply chains will radically change over the next five to 10 years as a result of new technologies, competition and customer demands, according to a new study by MHI and Deloitte that was released during ProMat. On average, companies surveyed expect to invest heavily in new supply chain technologies over the next two years, with the top 17 percent spending over $10 million.

According to the 2015 MHI Annual Industry Report titled “Supply Chain Innovation — Making the impossible possible,” firms should embrace this transformation today and focus on investing in new technologies to help compete and thrive as their supply chains continue to face constant pressure to do more with less.

At the ProMat keynote, Scott Sopher, the principal with Deloitte Consulting LLP’s Supply Chain practice joined George W. Prest, CEO of MHI to present the findings of the 2015 report. The report uncovered eight innovations and five supply chain realities that are impacting and transforming supply chains. The eight innovations are:

–Inventory and network optimization tools
–Sensors and automatic identification
–Cloud computing and storage
–Robotics and automation
–Predictive analytics
–Wearable and mobile technology
–3D printing
–Driverless vehicles and drones

During the keynote, a panel of supply chain leaders discussed the real-world significance of the report findings:

–Bill Abernathy, Head of PSNA Logistics Excellence, Bayer CropScience LP
–John M. Hill, Director, The St. Onge Company
–Gregg Schweir, EVP, Vice President of Research and Development, La-Z-Boy Inc.
–Art Roman, Director – Design and Construction US Foods
–Jonathan A. Rader, Manager – Design Engineering, FedEx SmartPost
–Brian D. Hancock, SVP Supply Chain, Family Dollar Stores, Inc.
–Randolph L. Bradley, Technical Fellow, Supply Chain Management, The Boeing Company

View the video of the keynote and download the complete report.