Supply chains under pressure - what concerns are driving the industry

• Prologis Supply Chain Outlook Report 2025: Executives in Germany, the USA and the UK surveyed on supply chain management
• 89 per cent of respondents in Germany want to automate their supply chain more
• Study shows that resilient and sustainable supply chains are crucial for security of supply - logistics real estate plays a key role in this regard

Düsseldorf, 3 February 2025 - What are the future challenges in supply chain management? Prologis commissioned the US market research institute The Harris Poll to survey a total of 1,025 international managers, 254 of whom were based in Germany. The respondents agree that economic and political pressure will determine where goods are manufactured or stored in the future. Sustainability remains important, but investments in it must amortise in the foreseeable future.

Whether climate crisis, (geo)political instability or uncertainty about future economic development - managers around the world are facing major challenges and the issues are similar. The fact is: supply chain management is in crisis mode. Two thirds of all managers surveyed are so worried about global supply chains that they are having trouble sleeping.

A total of 86 per cent of all executives surveyed in the US, UK and Germany say that economic and geopolitical pressures are influencing decisions about production and warehouse locations. 85 per cent of managers report that legal requirements accelerate the implementation of sustainable solutions in the supply chain.

Motif 1: "Infographic"/ ©Prologis
Executives in Germany confirm that the topics of automation, sustainability and AI will play a decisive role in supply chain management.

"Green real estate" - ensures long-term profitability

The integration of green real estate solutions is increasingly recognised globally as a cornerstone of sustainable supply chain management. Worldwide, 87 per cent of managers consider "green real estate" to be essential - not only to contribute to environmental sustainability, but also to ensure the long-term profitability of their company. In Germany, 85 per cent of study participants take a similar view and emphasise that an adequate return on investment (ROI) is crucial for financing sustainability initiatives in supply chain solutions.

Motif 2: "Symbol image"/ ©Prologis
87 per cent of managers worldwide see "green real estate" as essential - not only to make a contribution to environmental sustainability, but also to ensure the long-term profitability of their company. 

Automation: relieving employees, alleviating staff shortages

"AI and automation" is of particular concern to respondents in Germany. Given the dual pressures of labour shortages and the need for operational efficiency, automation is seen as a key solution. It promises to increase productivity, reduce errors and alleviate the problems of labour shortages.

In Germany, 89 per cent of respondents plan to expand the automation of their supply chains in the next two years, compared to 81 per cent globally. Regulatory requirements (88 per cent in Germany, 85 per cent globally) and internal company pressure (87 per cent in Germany and globally) are the main reasons for this push. In addition, 85 per cent of managers in Germany believe that investments in automation will significantly reduce the
workload of employees and curb problems such as burnout (87 per cent globally).

In focus: AI and cybersecurity

At 84 per cent, an above-average number of German managers express their concerns about AI: they fear disruption to their business. AI is therefore one of the most pressing concerns, followed by weak demand (81 per cent) and economic development (81 per cent). At a global level, the corresponding figures are 73 per cent for AI, 79 per cent for weak demand and 81 per cent for economic development.

German managers point to cybercrime (39 per cent) as a potential threat to the supply chain, although the international average is significantly higher (50 per cent). In order to make their own supply chains resilient, almost as many respondents in Germany emphasised the need to strengthen data and IT systems (38 percent).

German companies consider optimised logistics processes (7.51 on a scale of 1 to 10), better forecasting and demand planning (7.48) as well as computing power and data centre expansion (7.48) to be particularly important for competitiveness in the area of AI and intelligent data solutions for the supply chain.

Robust, secure, resilient - the supply chain of tomorrow

The survey makes it clear that developing resilient and secure supply chain networks will be critical to managing risk and protecting assets.

"It is crucial to have robust and secure supply chain solutions that can adapt to economic fluctuations and digital threats," says Björn Thiemann, Senior Vice President, Regional Head Northern Europe at Prologis. "Logistics real estate plays a key role when it comes to the resilience of global supply chains. Investments in flexibly usable properties, automation and sustainable solutions are essential for this. These measures increase efficiency, strengthen competitiveness and meet the growing regulatory requirements."

About the methodology

The survey was conducted by The Harris Poll on behalf of Prologis from 4 to 19 September 2024 among 1,025 executives who play a key role in their companies. The study includes insights from 508 executives from the US, 263 executives from the UK and 254 executives from Germany, providing an international perspective on the challenges and opportunities shaping supply chain management in the future. The survey includes respondents from companies with more than 250 employees, with a third of respondents working in organisations with annual revenues of more than $2 billion.

About Prologis

Prologis, Inc. is a global leader in the logistics real estate industry with a focus on hard-to-reach, high-growth markets. As of 31 December 2024, Prologis owned or had interests, on a consolidated basis or through unconsolidated joint ventures, in properties and development projects with an expected total of approximately 120 million square metres of space in 20 countries. Prologis leases modern distribution facilities to around 6,500 customers from various industries - particularly in the B2B and retail/online fulfilment sectors.

Media contact
Maria Mateen
External Communications Manager Northern Europe, Prologis
mmateen@prologis.com
+31 20 655 1958
Torben Sachau
Senior PR Consultant, STROOMER Communications
torben.sachau@stroomer.de
040 853133292