A new survey from supply chain and logistics consultancy Prological has found that rising costs and inflation have become the top challenge for supply chain professionals, prompting businesses to cut back on sustainability and technology transformation initiatives.
The Prological Supply Chain Pulse Check Survey 2025, which gathered insights from over 200 professionals across supply chain, logistics, manufacturing, retail, property, and operations, highlights a slowdown in automation and sustainability investments as companies navigate economic pressures.
According to the survey, automation investment has declined, with only 38 per cent of organisations increasing automation in 2024, down from 49 per cent in 2023.
Similarly, sustainability efforts have weakened, with 54 per cent of businesses actively working to reduce carbon emissions, a drop from 72 per cent last year.
Rising costs and inflation have now overtaken staff shortages as the most pressing issue in supply chain operations, with 25 per cent of respondents identifying it as their primary concern.
Staff shortages remain a significant challenge at 17 per cent, while inventory management has grown in importance, cited by 10 per cent of respondents.
Despite the pullback in transformation efforts, the survey suggests that larger organisations remain committed to automation, with 66 per cent of businesses employing between 101 and 300 people planning to increase automation investments in 2025 and 2026.
In the industrial property sector, the survey reveals a shift in priorities, with 49 per cent of organisations focusing on operational efficiency when selecting warehouse facilities, compared to 26 per cent prioritising cost.
The findings indicate a recognition that lower lease costs do not necessarily translate to better operational outcomes.
Commenting on the results, Prological Managing Director and Founder Peter Jones said businesses were adapting to economic constraints rather than abandoning transformation efforts altogether.
“The story of 2024 has been one of recalibration rather than retreat,” Jones said.
“While we’ve seen a notable pullback in automation investment and sustainability initiatives, these shifts represent a maturing approach to transformation rather than an abandonment of progress. Organisations are learning to navigate the delicate balance between innovation and pragmatism, adopting more measured, sustainable approaches to change.”
To download the Prological Supply Chain Pulse Check 2025 report in full, click here.
