ANZ firms boost AI investment to future-proof supply chains

A new IDC InfoBrief sponsored by Blue Yonder has found that organisations in Australia and New Zealand are increasing investment in artificial intelligence (AI) supply chain technologies to strengthen resilience, increase productivity, and address changing customer expectations.

The report, titled "AI-Driven Orchestration for the Modern Supply Chain", is based on a survey conducted by IDC of 742 business leaders across the manufacturing, retail, logistics, transportation, wholesale, and distribution sectors throughout the Asia/Pacific region. The findings point to a proactive adoption of technology in Australia and New Zealand (ANZ), with companies seeking to mitigate legacy challenges and enhance overall supply chain visibility through automation, predictive analytics, and intelligent warehousing.

According to the survey, 99.5% of supply chain leaders across the entire Asia/Pacific region consider visibility a primary priority, while 99.7% see agility in responding to disruptions as essential. The research indicates that AI and advanced technologies are playing a pivotal role, enabling organisations to make faster decisions, foster stronger supplier collaboration, and develop more adaptable logistics strategies.

In terms of strategic priorities for the coming three years, ANZ respondents identified the following focus areas: multi-shoring strategies to diversify supply bases and reduce risks, cybersecurity resilience to safeguard increasingly digital supply chain environments, accelerated product innovation for quicker delivery to market, and improved consumer focus to raise satisfaction and responsiveness.

Warehouse and inventory management emerged as the principal area for generative AI applications in ANZ, followed by enhancements in worker productivity, procurement processes, and broader supply chain design. The report details real-world examples, such as Silk Logistics' adoption of warehouse automation, to illustrate how local companies are achieving operational improvements and enhancing customer service through the use of AI-driven tools.

Antonio Boccalandro, President, APAC at Blue Yonder, commented on the findings: "ANZ businesses are responding to a new era of supply chain complexity by leaning into AI-driven orchestration. They are building smarter, more connected ecosystems that can see, analyze, decide, and act in real time. As the region is beset by economic and logistical challenges, this innovation will be critical to ensure business continuity and success."

The study also contrasts the approach in ANZ with broader developments across Southeast Asia, where digital connectivity and sustainability are at the forefront. Organisations in these regions are increasingly utilising cloud-based collaboration platforms, robotics, and Internet of Things (IoT) devices to tackle fragmentation in supply chains, limit environmental footprints, and remain agile amid rapid market changes.

The IDC InfoBrief reveals that 47% of Asia/Pacific supply chain organisations are already seeing reduced time from data collection to decision-making thanks to AI applications, and 35% are using digital ecosystems to improve collaboration with suppliers. The research points to a regional movement towards predictive technologies forming the backbone of procurement, logistics, fulfilment, and customer engagement functions.

The report highlights orchestration—defined as the integration of data, systems, and processes across internal and external stakeholders—as a crucial strategy for contemporary supply chains. This approach aims to eliminate silos and manual interventions, supporting quicker responses, cost reductions, and more environmentally sustainable operations.

Stephanie Krishnan, Associate Vice President, IDC Asia/Pacific, commented: "Organisations across Asia/Pacific must adopt scalable AI solutions, cloud platforms, and collaborative ecosystems to future-proof their supply chains. Those who can unify their data and orchestrate their networks in real-time will lead in performance, resilience, and innovation."

The survey underpinning these findings included business leaders from industries most affected by supply chain complexity and transformation, reflecting the region's urgent focus on digital enablement as global supply chain challenges persist.