The digitization of the supply chain is gaining importance in German companies – at least at the strategic level. So what’s the status when it comes to implementation? Insights into the matter are delivered by the 22nd SupplyX Barometer. The Barometer is based on a survey conducted among 150 logistics managers. Key findings include the fact that while the desire to digitize is widespread among companies, practical progress often falls short of expectations – there is still a long way to go between digital aspirations and operational reality. Structural, technical, and organizational hurdles are slowing many companies down when it comes to the implementation of their digitization strategies.
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Digital SCM: Between vision and reality
82 percent of the companies surveyed recognize digitization as a key success factor in Supply Chain Management. However, only 9 percent already have a fully digitally integrated supply chain. The majority of companies are still in the process of transition: 36 percent report partial integration of digital processes, while 27 percent report extensive integration. More than one in ten companies (11 percent) are still in the early stages. Thus, a thorough digitization of processes remains a future goal for many, but it’s not the current standard.
Investment as a sign of progress
However, there is a clear desire for further development: almost half of those surveyed (48 percent) plan to invest in automated inventory management, a key lever for efficiency and transparency. This need is particularly high in companies with increasing complexity, such as small and medium-sized enterprises. In addition, 43 percent are focusing on digital platforms for partner integration, 33 percent on data analysis and AI, and 30 percent on end-to-end transparency.
Despite the advantages, some companies are still hesitant to take the plunge: 27 percent are currently not planning any investments in digitization measures – a warning sign in view of growing market requirements. “Those who don’t invest in digital infrastructure now will find it difficult to remain competitive. In logistics in particular, the demands for transparency, speed, and resilience are constantly increasing, and this cannot be achieved with analog processes,” says Jörn von der Fecht, Chief Digital Officer at SupplyX.
From strategy to implementation
Anyone who wants to make their supply chain future-proof does not only need a clear strategy, but also tangible implementation plans. Investing in key digital technologies is a first, crucial step. However, only consistent integration across system boundaries will bring about real progress.
Further information and insights can be found in our 22nd SupplyX Barometer, “Digital Transformation in Supply Chain Management.” The report can be downloaded here free of charge: