Staffing shortages top the list of concerns for supply chain professionals in 2024, as evolving technologies reshape the global marketplace.   

That’s according to a new report from supply chain and logistics consulting agency Prological, which surveyed 200 professionals in manufacturing, retail, consulting and freight businesses on their priorities and potential challenges headed into 2024.  

Of the many issues facing businesses in the new year, staffing was number one by a wide margin. Twenty percent of respondents cited it as their chief concern, followed by rising consumer demand at 13%, supplier relationships at 12%, and inventory management at 11%.  

That largely echoes what professionals said in the same survey for 2023, in which staffing shortages and rising consumer demand similarly took the top two spots.  

This is all while more businesses are turning to automation to increase productivity and handle higher volumes, the report’s authors said, with respondents projecting a 10% increase in spending on automation between 2023 and 2024. That comes alongside the 58% of respondents who say they will “consider” investing more in the technology in the coming year.  

The hope is that, as automation and other technologies ramp up, a balance can be struck between that and ongoing difficulties surrounding hiring and retaining workers. The report indicated a growing realization that artificial intelligence will likely drive the future of supply chain capabilities, with nearly half of respondents looking to increase their AI capability to improve their business in 2024. Just 13% said they will not be putting money into AI at all over the next year.  

Enthusiasm for AI seemed strongest in the C-Suite, where 82% said they plan to “increase supply chain/logistics capability” with AI in 2024 and 2025. Mid-level and entry-level professionals were more hesitant, with 33% and 35% expressing a need to ramp up their AI capabilities, respectively. 

Other priorities highlighted included plans from 80% of respondents to cut carbon emissions. That was stressed by the C-Suite as well, 47% of whom vowed to make “major” shifts to sustainability in 2024. That’s driven in part by the 67% of respondents who say they have been pressured by investors, suppliers, and customers to fast-track their sustainability agendas.  

In total, 48% said they plan to at least “somewhat” reduce their carbon emissions in transport in 2024, with another 18% saying they would do so “significantly.” Fifteen percent said it was an “ambition” of theirs.  

On a larger scale, respondents expressed optimism in the economy continuing to improve as the pandemic drifts further into the rear view. Additionally, more than 50% say they’ve seen a “greater focus and understanding of supply chains” from those in the C-Suite over the past year.