In a time when discovering ways to improve supply chain resilience is a mainstream topic, Cleo has some encouraging news for all of us.
“A company’s supply chain is simply a series of commitments that tether across an ecosystem and must be delivered upon,” says Tushar Patel, CMO at Cleo. “And for companies to uphold those critical business commitments, they need to consistently invest in their supply chain technology, otherwise they stand to take a hit to their relationships – impacting their bottom line.”
New research indicates that technology investments are increasing organizations’ ability to deliver on their supply chain commitments, resulting in accelerating profitability, revenue growth, competitive differentiation, and supply chain efficiency. What’s more, the ROI of these investments is seen quickly.
Key Takeaways:
Specifically, Cleo’s just published 2024 Ecosystem Integration Global Market Report outlines these findings:
- 97% of companies surveyed invested in supply chain technologies in 2023.
- 81% stated their supply chain investment delivered business improvement in less than 24 months, with 35% getting benefits in the same year.
- Roughly 80% indicated they increased revenue in the same year they made supply chain technology investments.
- More than half (51%) will invest $1 million or more in supply chain technology in 2024.
52% of companies reported lower profits from failing to meet business objectives in 2023. Respondents indicated such failures were due to:
- External conflicts like Inflation, unforeseen global events, and labor shortages.
- Internal conflicts like supplier, fulfillment, and manufacturing problems.
- Trading partners failing to uphold business commitments.
To further improve their businesses through continued supply chain investment, the three business objectives companies say they are placing greatest emphasis on in 2024 include:
- Improving the customer experience (50%).
- Fostering stronger relationships with trading partners (35%).
- Building resilience to supply chain disruptions (30%).
