For most companies, the digitization of Supply Chain Management (SCM) is no longer uncharted territory – on the contrary, it’s firmly anchored within their strategies. However, obstacles remain, as those strategies are often not yet consistently put into action. This fact is shown by the results of the 22nd SupplyX Barometer. Many of the 150 companies surveyed do know that they need to become more digital in order to remain resilient, efficient, and competitive. Yet, when it comes to implementation, it becomes apparent that the potential of digital technologies is only being partially exploited at this point.
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Strategic relevance is known, yet integration is lacking
82 percent of logistics managers surveyed describe digitization as essential for their company’s competitiveness. In small and medium-sized enterprises, this figure is as high as 100 percent. However, reality reveals a different image: Only 41 percent of companies claim to already be digitally connected with their customers or partners. This is remarkable, as continuous data flows across company boundaries are a prerequisite for efficient and resilient supply chains.
Critical: The lack of integration can significantly limit responsiveness, for example in the event of supply bottlenecks or geopolitical disruptions. In that case, information remains stuck in data silos, and processes are not consistently automated and transparent. Consequently, a digitally connected supply chain is the only way to achieve the agility and adaptability that global markets demand.
Standardized data as the foundation for progress
Another important issue is data standardization. Two-thirds of respondents (67 percent) consider a uniform database to be essential for efficient digital processes. This view is particularly prevalent among companies with 250 to 1,000 employees: 92 percent of them recognize the need for structured, compatible formats. Without standardized data, technologies such as Artificial Intelligence (AI), automation, and real-time analytics cannot reach their full potential.
Real-time systems enable agile supply chains
Additionally, real-time systems are a key factor for modern supply chains. 48 percent of logistics managers surveyed consider them to be very important for agile control – in medium-sized companies, this figure is as high as 92 percent. Whether as a prerequisite for forecasts, incident response, or precise planning, real-time information provides the basis for operational excellence.
And yet, the road to get there is quite challenging: 59 percent of those surveyed consider the integration of new technologies to be complex and risky. This figure rises to 80 percent for large companies with more than 1,000 employees. This assessment is likely due, among other things, to the large number of potential systems, their connection to the existing infrastructure, and, in some cases, a lack of skills among employees.
22nd SupplyX Barometer: Digitization must reach implementation phase
The survey shows that digitization is clearly recognized as an essential path leading towards the future. However, in order for it to become a competitive advantage, networking, data standardization, and technology integration must be implemented consistently.
These and other interesting findings from our 22nd SupplyX Barometer on “Digital Transformation in Supply Chain Management” are available for download here free of charge: