Global Supply Chains Moving Quickly to Digitally Transform

Half “lack the capabilities to track end-to-end performance across the supply chain,” according to the report.

©momius — Stock adobe
©momius — stock.adobe

Companies are rapidly transforming their supply chains to reduce business risk and improve resilience in response to supply shortages, cyberattacks, skyrocketing logistical costs, volatility and inflation, according to a GEP study.

“Many global companies spent the last 30-plus years outsourcing everything from back-office functions like IT to the last-mile delivery to customers, and as a result, they don’t have sufficient control and are at a material competitive disadvantage,” says David Doran, VP, consulting, GEP. “I am not saying to disregard outsourcing — in fact, the disruption to the world’s supply chains is going to get worse, so companies need to accelerate their investment to build resilience, flexibility, visibility and control over their complex, multi-tier, interdependent global supply chains. But, they need to do it right.”

From PR Newswire:

  • While 90% of executives say supply chains are a strategic resource that helps ensure their company’s profitability and survival, just 8% have achieved digital maturity across six key components of supply chain operations -- warehousing and logistics, procurement, inventory management, supply planning, demand planning and management and supplier risk management.
  • As a result, companies are moving quickly to digitally transform their supply chains, with nearly 70% accelerating their supply chain modernization — with a greater emphasis on collaboration tools and real-time demand forecasting analytics to foresee and mitigate future disruptions.
  • Just 28% rate themselves as “leaders” and as having achieved a high level of digital maturity across key supply chain operational areas.
  • Half “lack the capabilities to track end-to-end performance across the supply chain.”
  • The “lack of real-time data about end-to-end performance of the supply chain” is the biggest barrier to most companies.
  • Only one-fifth can “quantify ROI for its investment in supply chain transformation.”