Supply chain management and efficiency have emerged as top priorities for global manufacturers amid relentless pressures of operating in a global marketplace and the existing industry dynamics. However, only a small percentage of companies have unlocked the full potential of disruptive technologies.
With increasing product complexity and rising costs, organizations need to rethink their supply chain management operations to stay competitive.
Different regions are at different starting points and have unique resourcing situations. Companies in technologically advanced economies such as North America or Europe may have started their digital journey several years ago while other regions might be taking the plunge now.
Also, all regions will not have the same level of resources - financial, leadership, and talent wise. Priorities and the pace of transformation depend on these conditions.
Recent research by Trasers reveals that North America is surprisingly lagging in supply chain digitalization compared to other regions in the world. Majority of the respondents in North America (73%) have indicated that they have digitalized only up to 50% of their supply chain processes.
One reason is that North America has large-scale legacy investments that are not easy to replace. Another reason is in emerging economies, the scale of past investments is much smaller, allowing companies to digitalize from scratch.
Supply chain management transformations require investments in digitalization and analytics around key components such as:
- Demand Planning and Forecasting
- Purchase and Supplier Management
- Inventory Management
- Inbound and Outbound Logistics
- Warehousing
- Extended Supply Chain (Partnerships)
- Reverse Supply Chain Management
Leaders who are successful did not stop after their initial success and are the most aggressive investors in supply chain transformation.
For detailed information regarding the regional view of Supply Chain digitalization refer to “Trasers Reports for Supply Chain Management Transformations - Regional View.”