Technology is a Key Driver For Growth in Supply Chains, But Lack of Understanding Across Leaders is Holding Back Progress – Research Reveals
A new research report has revealed a contradiction in supply chain technology adoption, with 62% of supply chain decision makers citing technology as a key driver for business growth, yet 45% are struggling to effectively implement these solutions in daily operations.
This gap between recognising technology’s potential and practically implementing it to boost efficiency and drive business growth was identified in the Attitudes to Innovation report, commissioned by end-to-end supply chain consultancy TMX Transform.
The research surveyed more than 250 global supply chain and logistics decision-makers and provides insights into the awareness, attitudes, and uptake of innovative supply chain technology such as AI, predictive analytics, automation and simulation among industry leaders.
Of the business leaders questioned (including business owners, C-Suite executives, and management professionals) the majority are on board with technology in the supply chain. Three quarters have implemented innovative technology within their organisation and of these, four in five (80%) say their organisation is set for growth in the upcoming year, compared with just under 3 in 5 (59%) who have not implemented new technology.
The most implemented tech solutions are predictive analytics (62%), sustainable tech to reduce carbon footprints (59%), and the Internet of Things (52%). According to the data, predictive analysis has had the greatest impact on businesses, with 94% citing the technology has had a positive impact on their business.
When asked about the technologies that organisations have not implemented, but plan to, simulation/digital twins was the most common response, with 44% of respondents planning on adding the solution to their supply chain capability.
Yet nearly a quarter of respondents (24%) are unsure about AI/Machine Learning capabilities, while 60% are uncertain about what simulation/digital twins technology is, or does.
Cost-savings and improved efficiency was the most common benefit that respondents attributed to technology investment, ahead of reduction in human error and manual processes, and the ability to react quickly to changing consumer expectations and demand.
Travis Erridge, TMX Transform CEO:
“Today's consumers expect instant access to global products. The results of this research demonstrate that technology is paramount in adapting to this new reality, where supply chain becomes a strategic business advantage to unlock customer satisfaction. It is encouraging to see the positivity around innovation in the supply chain, but this report demonstrates the need for better education and support in adopting different solutions.”
“In the last few years, global conflicts, environmental crises, major trade disruptions and a pandemic have starkly revealed how vital a resilient supply chain is for business continuity. The companies who have been able to plan ahead, think progressively and be open to change have thrived, while those holding on to old processes have been left behind.”
Tom Fitz-Walter, TMX Transform Executive Director - Supply Chain
“Automation and technology are crucial in addressing the pressing issue of labor shortages in supply chains. However, experiencing the biggest benefits of technology hinges more on people than the technology itself. As organizations face challenges like
high staff turnover and a lack of experienced leaders, nurturing and retaining skilled personnel becomes essential to successfully implementing technology solutions and driving innovation.”
To read the full Attitudes to Innovation report, click here.
