How far have German companies advanced when it comes to the digital transformation of their supply chains? What obstacles exist in the implementation of digital strategies? And: In which core operational areas is added value being created? Based on a survey conducted among 150 logistics managers on the topic of “Digital Change in Supply Chain Management”, the 22nd SupplyX Barometer provides current insights from practice – with interesting results.
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High costs, data protection, and a lack of standards
The digitization of Supply Chain Management is a declared goal for many companies. However, in practice it presents a number of challenges. According to the results of the 22nd SupplyX Barometer, many logistics managers are confronted with specific implementation problems. High implementation costs are considered particularly burdensome by 39 percent of those surveyed. In medium-sized enterprises with 250 to 1,000 employees, this figure rises to 50 percent. Security aspects also play a role in this context: 38 percent cite data protection and cybersecurity as major hurdles. In turn, this results in a high level of regulatory requirements.
Another key obstacle is the lack of interoperability. 26 percent of companies surveyed say that incompatible systems are a major barrier when it comes to digitization in SCM. Missing interfaces and inconsistent data standards mean that processes do not link seamlessly, resulting in untapped efficiency potential. The low level of support from external partners or suppliers is also considered critical by 29 percent. This shows that digitization certainly does not end at the company’s boundaries: Instead, it requires networked collaboration along the entire supply chain.
Tangible added value: Digitization pays off
Despite the challenges, the barometer also shows that investing in digital technologies pays off. In warehousing and inventory management in particular, 61 percent of those surveyed report a clear gain in efficiency. In companies with 250 to 1,000 employees, the figure is as high as three-quarters (75 percent). Smart tools enable a more precise control of goods flows, minimize storage costs, and improve product availability.
Significant advantages of digitization are also evident in forecasting and demand planning (48 percent), as well as transport and route optimization (38 percent). The companies surveyed report significantly better results in these areas – for example, through data-based forecasts or intelligent route planning.
Digitization is more than just technology
The survey clearly shows that investing in digitization pays off, especially when technical essentials such as interfaces, data structures, and security are taken into account.
Further information and insights can be found in our 22nd SupplyX Barometer “Digital Transformation in Supply Chain Management.” You can download the full report free of charge.