Wednesday's Afternoon Keynote: 2025 MHI Annual Industry Report Findings

In Wednesday afternoon’s keynote, MHI CEO John Paxton Wanda Johnson of Deloitte presented the findings from the 2025 MHI Industry Report, which highlights trends and issues facing the supply chain industry. To start off, Paxton presented an overview – here are the highlights:

Among the key survey findings, top supply chain challenges include hiring & retaining workers (52%); talent shortage (45%); forecasting (44%); and customer demands (43%).

In this year’s report, 55% of respondents said they are planning to increase investment in technology, with 60% planning to invest more than $1 million and are planning to invest more than $10 million.

The top ten supply chain trends were:

1. Inflation & rising costs
2. Economic uncertainty
3. Workforce & talent shortage
4. Supply chain agility & resilience
5. Inventory challenges
6. Cybersecurity & data security
7. Demands for real time data
8. Digitization & pace of tech adoption
9. E-commerce growth
10. Sustainability & environmental

The panelists then delved into the results from the Industry Report, moderated by Johnson. Panelists included:

• Thomas Goldsby, Dee & Jimmy Haslam Chair of Supply Chain, David P. Perrot Supply Chain Management Faculty Fellow, University of Tennessee
• Priscilla Burke, Director, Supplier Risk & Compliance, Stanley Black & Decker
• Rick McDonald, CEO, Rick McDonald Supply Chain Advisory LLC and Former Chief Supply Chain Officer, The Clorox Company
• Randy Jaunzemis, Vice President of Distribution, Performance Health

The panel discussion explored critical aspects of technology integration, risk mitigation and leadership strategies necessary for success in today’s fast-paced business environment. Industry leaders shared valuable insights into overcoming barriers, optimizing performance and fostering a culture of continuous innovation.

The Role of Technology in Supply Chain Management

The discussion opened with the importance of technology in modern supply chains. Panelists emphasized that while technology is a powerful tool, it cannot solve all challenges alone. Companies often attempt to implement new systems without addressing change management, leading to failed adoption. Standardized processes and stakeholder engagement are key to successful implementation.

The necessity of real-time monitoring tools, predictive analytics and compliance measures to optimize supply chain performance were also mentioned. Companies must proactively assess system health and ensure that various digital tools work cohesively.

Integration Challenges and Ethical Considerations

A significant portion of the discussion revolved around integrating innovative technologies into existing systems. From an academic standpoint, panelists stressed the importance of questioning the purpose of digital transformation. Organizations must understand how technology creates value for customers and the business before deployment.

Moreover, ensuring system interoperability is crucial. Enterprise architecture teams play a pivotal role in streamlining communication between different software solutions. A structured approach to integration prevents inefficiencies and supports long-term sustainability.

AI, Workforce Evolution and Change Management

The conversation then shifted to workforce implications of AI adoption. A key concern among employees is job displacement due to automation. A report was cited which identifies new job roles created by AI adoption, demonstrating that AI is not solely about job elimination but also about transformation.

Leaders must be proactive in managing change by educating employees on AI’s role as a supportive tool rather than a threat. Proper change management ensures smooth transitions, minimizes fear and enhances productivity. Real-world examples showed that companies that invested in change management experienced higher success rates in AI integration.

Process Optimization and Supply Chain Agility

Panelists shared real-world examples of streamlining supply chain operations. For instance, automation in packaging reduced manual touchpoints from 14-15 down to 4-5, significantly improving efficiency. Similarly, AI-driven demand forecasting helped companies adjust planning cycles, improving accuracy and responsiveness.

A compelling case study from the pandemic era illustrated how businesses adapted to unpredictable market fluctuations. By shifting from a rigid 30-day planning cycle to a more flexible 15-day cycle, organizations improved forecasting accuracy and supply chain agility.

Leadership’s Role in Digital Transformation

The discussion concluded with an emphasis on leadership’s role in fostering an interconnected supply chain. Panelists stressed that beyond adopting digital tools, leaders must prioritize problem identification, resource allocation and digital fluency. Companies must be willing to move away from legacy systems in favor of more adaptive and advanced planning tools.

Also highlighted was the importance of cross-functional collaboration. Bringing together legal, compliance and trade teams ensures alignment on digital transformation strategies, preventing resource duplication and inefficiencies. Standardized processes and a shared vision enable organizations to navigate technological advancements effectively.

Final Thoughts

The panel provided a wealth of insights into navigating the evolving landscape of supply chain technology. Key takeaways included:

• Technology is an enabler, but change management is essential for successful adoption.
• Real-time analytics and predictive tools enhance supply chain efficiency.
•  AI should be embraced as a tool for workforce augmentation, not just automation.
• Supply chain agility depends on flexible planning and proactive leadership.
• Strong leadership and cross-functional collaboration drive successful digital transformation.

The session ended with an invitation for attendees to engage further with the experts, leveraging their decades of experience to refine their own supply chain strategies. The insights shared underscored that success in today’s dynamic business landscape requires not just technological investment, but also strategic vision and leadership commitment.