Although the supply chain remains integral to retail’s timeliness and customer experience capabilities, industry players are still having difficulty gathering data that could streamline its processes.
In fact, only 15% of retailers and manufacturers have access to the data they’re collecting across their extended supply chain, while just 23% of those that have access actually analyze data for decision making purposes, according to a research study from Capgemini Consulting and GT Nexus.
The good news is that the first number is expected to jump to 54% within the next five years, while the latter is expected to reach 68%. Leading this charge, as many as 70% of retail and manufacturing executives say they have begun implementing a formal digital supply chain transformation effort within their company.
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The study, titled: The Current and Future State of Digital Supply Chain Transformation, surveyed 337 executives from large global manufacturing and retail organizations across 20 countries in Europe and North America.
Satisfaction Still Remains Low
Although most of these businesses have started beefing up their supply chains, 33% remain dissatisfied with the progress of their digital transformation. Only 5% of these companies said they were very satisfied with the way these transformations have panned out so far.
A general lack of cloud-based software within the company hasn’t helped the causes of many of these executives: 69% of respondents admit that less than 25% of their software is cloud-based. To make matters worse, only 6% said that a majority of their software was cloud-based.
Besides the lack of updated software, these businesses also are missing both awareness and skills. Up to 44% of executives reported a lack of awareness throughout the internal ranks of their own organization regarding digital supply chain transformation, with 39% also noting a lack of the required skills across their workforce.
Identifying The Agents Of Change
There is hope on the horizon, with more retailers and manufacturers identifying important enablers to digital supply chain success within the next five years. Organizations already are making investments in these enabling technologies, including:
• Supply Chain Visibility Platforms/Tools (74% of respondents);
• Big Data Analytics (50%);
• Cloud-based Software (48%); and
• Simulation Tools (34%).
