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ABOUT KENCO
Kenco is a leading North American 3PL delivering custom, integrated logistics solutions that maximize supply chain efficiency. For more than 75 years, they have partnered with customers to provide distribution, transportation, material handling and automation solutions. Kenco’s people set the organization apart—experienced, committed associates who bring agility and expertise to even the most complex supply chain challenges. Guided by its mission and vision, Kenco innovates relentlessly to deliver solutions on a national scale with the care of a local provider, building trusted partnerships that keep goods moving and businesses growing.
Organizations are facing an “innovation paradox.” Many are turning to innovation to offset inflation, even as inflationary pressures make it harder to fund and execute those very projects.
Innovation vs. Inflation: The Industry Catch22
Even with financial strain, most companies are still finding room in the budget for innovation, though they’re more cautious than they were heading into 2025.
Despite Caution, Budget Growth Continues
33%
Quality Management
Top 3 priorities to improve with innovation in 2026
What departments are hardest to work with on innovation projects?
Inflation
45%
Labor Shortages
28%
Sustainability Costs
27%
51%
29%
45%
Technological Integration
Cost
Workforce Challenges
2026 Report
Supply chain leaders continue to balance rising costs, labor pressures, and digital transformation demands. Kenco’s latest Innovation Survey reveals how companies are approaching 2026: where they’re placing their bets, what’s slowing them down and what they really expect from partners.
Top challenges to implementing innovations in 2026:
2026 Priorities: Quality, Inventory & Labor
2026 innovation will continue to be grounded in AI, but companies must also prioritize investing in clean, connected data to fully realize AI’s potential.
AI is Hot, but Data is the Foundation
When it comes to innovation, the biggest internal hurdles are not technical, they’re organizational.
Where Innovation Gets Stuck
ABOUT thE SURVEY
Kenco surveyed over 150 North American supply chain executives to gather insights on their company's strategy for innovations and automation for the coming year.
Top market conditions companies expect innovation to help solve in 2026:
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saw budget increases (down from 39% last year)
35%
saw budget decreases (up from 12% last year)
20%
have dedicated 2026 innovation budgets
83%
15%
Emerging Technologies
Existing Technologies
43%
42%
A Blend of Both
Organizations continue to lean on proven, established technologies when evaluating innovation opportunities, a signal that trust, reliability, and demonstrated ROI still matter more than novelty.
Legacy as a Launchpad:
Why Proven Parters Still Win
As organizations look to modernize, many are turning to 3PLs to help them evaluate, implement and sustain new technologies.
3PLs: The Multi‑Role Catalyst Behind Supply Chain Innovation
Inventory Management
Labor Optimization
In 2026, companies are gravitating toward foundational, operations-focused improvements rather than flashy point solutions.
To make these innovations successful, businesses should begin by studying real-world examples of the technology in action. Case studies provide a practical blueprint by showing what works, what doesn’t and how best to implement the solution within their own operations.
27%
AI & Machine Learning
Computer Vision
18%
23%
Supply Chain Digitalization
17%
Generative AI
(e.g., predictive analytics, demand forecasting)
(e.g., automated quality checks, visual inventory tracking)
(e.g., scenario planning, disruption modeling)
33%
22%
20%
23%
HR
Risk
Legal
IT
40%
Operations
Difficulties with innovation often stem from previously established data and compliance policies, highlighting the importance of collaboration and internal alignment before launching largescale innovation projects.
This overwhelming preference for solutions with a track record underscores a consistent pattern: innovation only scales when it’s built on a dependable foundation.
have at least a budget of $500K, up from 40% the year prior
49%
While budget fluctuations exist, nearly half report having larger innovation budgets than in 2025.
17%
20%
37%
17%
Implementing Partner
Provider of Ongoing Support and Maintenance
All of the Above
Advisor
10%
Funder
Whether companies are piloting automation, exploring AI, or modernizing data systems, 3PLs often act as the connective layer, helping translate new technologies into operational outcomes that can scale.
Understanding the 2026 Supply Chain Innovation Landscape
Kenco’s latest Innovation Survey reveals how companies are approaching 2026: Where they’re placing their bets, what's slowing them down and what they really expect from partners.
Supply chain leaders continue to balance rising costs, labor pressures, and digital transformation demands.
27%
23%
(e.g., real-time visibility, integrated planning systems)
2026 innovation will continue to be grounded in AI, but companies must also prioritize investing in clean, connected data to fully realize AI’s potential.
AI is Hot, but Data is the Foundation
When it comes to innovation, the biggest internal hurdles are not technical, they’re organizational.
Where Innovation Gets Stuck
When it comes to innovation, the biggest internal hurdles are not technical, they’re organizational.
Where Innovation Gets Stuck
