The COVID-19 pandemic disrupted the supply chain industry and exposed its vulnerabilities. Adding to the pressure, even more complicated challenges have emerged, including extreme weather events, complicated geopolitical climates and the complex evolution of AI. 

A survey by Ivanti reveals the state of the industry, key insights from insiders and trends to watch. The survey collected insights from management and employees across a range of supply chain roles.

Too much work; too few workers

Pandemic-generated chaos catalyzed a surge in demand for supply chain workers, leading to rising pay and signing bonuses. Now that the market has settled, companies have shifted away from hiring sprees and are now focused on hiring select high-quality candidates and retaining top talent. This slower pace of hiring has increased pressure on workers to increase productivity, forcing them to maintain output with fewer people and resources.

According to research from Ivanti, to exceed KPI targets, organizations incentivize their workers in various ways, including schedule flexibility or offering the ability to leave work early (with pay) if they complete their tasks (59%), and offering bonus pay/accelerators (54%). Workers indicate that incentives motivate them (88%), with bonus pay/accelerators motivating most workers (32%).

These incentives help, but they may not be enough. Although 90% of supply chain workers indicate they are satisfied with their current role, over a quarter of workers (27%) are considering quitting their jobs in the next six months.

The solution already exists

That solution is, of course, technology. Especially AI-driven technology. Applied appropriately, the right technology can scale up capabilities and alleviate pressure on supply chain workers while maintaining or even escalating outputs. However, there has been widespread reluctance to adopt new technologies because of the uncertainty and challenges swirling around them.

Ivanti’s research underscores a critical point: it’s becoming clear that warehouse modernization is now a need — not simply a want — for operations and recruitment, especially for the next generation of warehouse workers.

According to the survey, 39% of managers feel that the availability of new technology and modern devices significantly impacts recruiting and retaining employees. The next generation of warehouse workers in the candidate pool has grown up with technology at their fingertips, and they’re not only accustomed to relying on technology but, in many cases, expect to be able to interact with technology to support their job efforts. This expectation appears to be well-placed: almost all (94%) supply chain workers who use technology such as automation, AMRs and AI to help them in their role believe technology enables them to be more productive or efficient.

The labor shortage (and corresponding pressure) is among the top three challenges that 31% of workers noted. Yet only 18% of supply chain workers believe attracting and retaining workers is the most impactful way to improve warehouse distribution fulfillment. In comparison, nearly double that number (35%) think robotic automation is a good solution for the worker shortage in the warehouse.

It’s clear: while fears of job displacement are valid, warehouse workers want to work in a modern warehouse alongside robots, leveraging AI to automate mundane tasks and help them achieve KPI targets quickly. AI-driven solutions offer workers flexibility, independence and career advancement. For the employer, these solutions provide streamlined operational efficiency, increased productivity, reduced costs, saved time and improved employee satisfaction.

Cybersecurity and AI in the warehouse

Overall, the supply chain industry has been slow to adapt to change — not for lack of effort by warehouse workers and managers. It’s a problem of infrastructure, not talent or ambition. Without adaptation, the industry won’t have the resilience necessary to address looming threats posed by the constantly evolving cybersecurity landscape.

Increasing numbers of IoT and internet-connected devices in modern warehouses have ramped up vulnerability to sophisticated cyber-attacks. In fact, 32% of warehouse respondents report that social engineering is one of the most-used entry points in warehouse cyberattacks – tied with software vulnerabilities (32%) and with the next closest response being devices (19%). However, according to supply chain managers, cybersecurity is a top concern for 58% of warehouses (only 13% do not view it as a concern).

Additionally, managers allocate the majority of their budgets to sourcing and procurement (41%), workforce productivity (40%), automation technologies (39%), and lowering operating costs (39%). However, cybersecurity is a thread that runs through all of these categories and none of these priorities will function properly in the event of a significant cyberattack. This emphasizes the urgent need for supply chain managers to prioritize cybersecurity in their overall strategies.

Training and endpoint management

As social engineering advances, an increase in inadvertent human error is inevitable. One alarming example: 54% of office workers were unaware that advanced AI could impersonate anyone's voice. This knowledge gap creates a clear pathway for threat actors.

Although training and education have served as a first line of defense for years, the speed at which AI is evolving doesn't allow training to keep pace. Supply chain managers must proactively address cybersecurity threats to ensure resilience.

The survey indicates that 59% of workers have received cybersecurity training; of those, 86% feel responsible for keeping the warehouse secure from cyber-attacks, and 90% proactively practice cyber hygiene in the warehouse to prevent cyber-attacks. While this is reassuring, warehouse and supply chain managers must leverage a multilayered approach for cyberattacks to keep pace with AI-powered threats. Plus, of course, this statistic leaves 41% of workers with no cybersecurity training.

Training gaps underscore the need for unified endpoint management (UEM) solutions that can help mitigate or prevent human error. Regardless of operating system or location, UEM enables security and IT teams to discover, manage, configure and secure every device in the warehouse from one simple interface. Operations IT professionals supporting warehouse deployments can enforce strong passwords, set system access protocols (e.g., minimum necessary access), require data management software, force updates and, in worst-case scenarios, force lock-out and purge features. Additionally, UEM provides visibility into applications installed on devices — meaning necessary applications can be pushed onto devices, or unwanted applications can be removed.

Embracing technology and automation

Workers and managers cite two main elements that could improve the warehouse distribution fulfillment processes: 1) intuitive technologies that enhance productivity while reducing errors and training time, and 2) more visibility and control over workflows (e.g., automation products such as AMRs, sortation, etc.).

Workers:

  • More visibility and control of over workflows (e.g., automation products such as AMR, sortation, etc.) (27%).
  • Intuitive technologies that improve productivity while reducing errors and training time (22%).

Managers:

  • Intuitive technologies that will enhance productivity while reducing errors and training time (27%).
  • More visibility and control of over workflows (automation products such as AMR, sortation, etc.) (25%).

In light of this, most managers (89%) plan to invest in new warehouse or supply chain technology in the next year. Price and ease of deployment are seen as the most critical aspects when evaluating new technology. 56% of managers see both price and ease as very important, followed by the security posture of the solution (55%).

Those new technology investments may not include automation, as it was only cited as a budget priority for 39% of managers. 63% of managers indicate having added automation into their logistics/warehouse, while 20% have not yet but plan to do so in the next 24 months.

Packing (56%) and picking (53%) are the most commonly automated in the warehouse. This is important because automation frees workers to focus on the higher-value aspects of workflows and address more complex assignments — helping improve overall warehouse productivity while reducing errors and training time.

Final thoughts

The supply chain bottleneck experienced earlier this decade has undoubtedly raised attention and pressures on industry workers and leaders. Investing in technologies that help workers maximize income will help attract and retain the best-performing talent, driving productivity gains. However, adoption isn’t straightforward for many warehouse leaders, with potential risks weighing heavily. While automation offers a clear ultimate payoff, several hurdles must be navigated first to ensure technology investments are operational and resilient against threat actors, environmental concerns, worker resistance and geopolitical uncertainties.

Methodology

Ivanti conducted a survey in 2024, with 800 supply chain professionals from multiple countries, including the US, UK, France and Germany. Respondents had to work in a supply chain, manufacturing and/or warehouse setting.

  • This survey reflects the answers of:
    • 400 supply chain workers
      • 100 per country in the US, UK, France and Germany
    • 400 supply chain managers
      • 100 per country in the US, UK, France and Germany

Worker profile

  • Most workers who participated in the study work in a warehouse (65%) or a manufacturing facility (17%).
  • The most common roles were warehouse associate (40%), shipping and receiving associate (19%), material handler (13%), procurement specialist (11%) or warehouse Loader (10%).
  • 77% of the workers have worked in their current role for more than five years, with 19% reporting more than 15 years.

Management profile

  • Most managers who participated in the study work in a warehouse (67%) or a distribution center (23%).
  • The most common roles were supply chain, warehouse or distribution center manager (50%), supply chain director (15%), chief supply chain officer (14%) and logistics, operations, procurement or infrastructure manager (13%)
  • 96% of the managers have worked more than five years in their current role, with 39% reporting more than 15 years.