Key findings
Digital Transformation Driving Logistics Evolution
Technology and automation are the top anticipated areas for increased spending (27%) over the next three years. Internet of Things (IoT) and Artificial Intelligence (AI) are the leading digital priorities, with 50% and 46% of respondents respectively identifying them as crucial for the next 2-3 years.
Resilience Through Risk Management & Partners
Financial impact assessments (67%) and regular internal risk assessments (65%) are the most effective initiatives for building supply chain resilience. Regulatory changes (72%) and supply chain disruptions (70%) are perceived as the biggest logistics-related risks. Strategic partnerships are increasingly seen as critical for enhancing resilience.
Cost Reduction and Efficiency Focus
A significant 81% of the executives we surveyed have adopted strategies to reduce long-term logistics costs. Improving inventory management (62%) and optimising route and transport modes (59%) are seen as having the biggest impact on organisational goals.
Sustainability as a Core Consideration
All executives recognise sustainability's importance in logistics decision-making, with 62% considering it somewhat important and 38% deeming it extremely important. 74% aim to reduce CO2 emissions by 50% within the next 5-10 years, with eco-friendly transportation modes (70%) being the most popular step taken to reduce emissions.
Supply Chain's Crucial role for CO2 Compensation
More than half of our respondents (52%) have a sustainability department that is managing their CO2 compensation budget. Finance still manages this function for 18% of our respondents, while supply chain (13%) is still playing a crucial role. For the majority, between 5 and 10% of their budgets have been allocated towards compensating Scope 3 emissions.
of respondents have adopted strategies to reduce their long-term logistics costs
"Leveraging digital transformation, resilient supply chains, and sustainability strategies, this report equips pharmaceutical shippers with keen insights on where to focus attention to make a difference. Perhaps most importantly, it helps to validate a true north that can lead to greater efficiency and innovation across the logistics network landscape."
David A. Komjati, Director of Logistics Transformation, Merck
