Companies Embrace Supply Chain Autonomy by 2035, but Confusion Persists
Companies worldwide are increasingly embracing autonomy in their supply chains, with 66% planning to advance their systems by 2035. This shift is driven by the need for a strong digital core, agentic architecture, process reinvention, data unification, and a modern operating model for workforce optimization. However, confusion between 'automation' and 'autonomy' hinders strategic decision-making.
Autonomy in supply chains has evolved from early experiments in the 2000s to fully autonomous systems like AMRs and AI-powered decision-making platforms. Companies like Körber, Microsoft, Lenovo, Colgate-Palmolive, and L'Oréal are implementing AI, robotics, and smart fulfillment centers to enhance automation and resilience. Meanwhile, companies such as Waabi, Tusimple, Daimler Trucks, and Gatik are leading in autonomous freight and last-mile delivery vehicles.
Automation and autonomy are distinct concepts. Automation focuses on executing predefined tasks, while autonomy involves systems making real-time decisions based on evolving data and conditions without human intervention. Automation began with the first Industrial Revolution and has advanced with technologies like RPA and AS/RS. Despite this, only 10% of companies are applying the most advanced, technology-powered capabilities to achieve fully autonomous supply chains.
Understanding the difference between automation and autonomy is crucial for informed investment decisions and future-proofing supply chain operations. With 48% of organizations planning to integrate AI agents within the next 3 years, the shift towards autonomy is inevitable. Companies must embrace this change to stay competitive and optimize their supply chain operations.
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