The growing demands for flexibility and efficiency lead to companies increasingly focusing their strategic orientation on their supply chains. The optimization of processes is becoming a key success factor in order to remain competitive and to assert oneself in a dynamic market environment. But which measures have proven successful and which are considered to be particularly effective? The 21st SupplyX Barometer, formerly the Hermes Barometer, on the topic of “Need for optimization along the supply chain” provides exciting insights into the strategies that companies are pursuing today to strengthen their supply chains.
Table of Content
Focus on purchasing conditions
One (individual) measure for optimizing the supply chain that is considered particularly effective is the improvement of purchasing conditions. 53 percent, meaning more than half of the companies surveyed, find this aspect to be of great importance. Optimized tendering processes or a stronger negotiating position with suppliers offer clear advantages: More favorable procurement prices enable companies to reduce their costs and improve margins. This is an effective lever, particularly in more competitive sectors where price advantages are crucial.
Another key measure is the improved exchange of information with suppliers and customers. Almost every second company (49 percent) sees this as an effective method of improving supply chain performance. Fast and transparent data transfer makes it possible to identify bottlenecks at an early stage and initiate countermeasures in a timely manner. The intensified exchange creates the basis for long-term collaboration based on partnership at the same time. This results in clear advantages: Companies that establish a smooth flow of information in their value chain benefit from better coordination and can react swifter to market changes.
Digitization and technologies on the rise
One particularly forward-looking approach to supply chain optimization is the implementation of digital technologies. 47 percent of respondents see the use of the Internet of Things, artificial intelligence or big data analytics as a key factor in collecting real-time data and making informed decisions. In medium-sized companies with 250 to 1000 employees, this proportion is even higher at 58 percent.
Again, the advantages are obvious: Digital technologies support more precise planning, promote fast response times and increase transparency along the entire supply chain. However, 33 percent of the companies surveyed also stated that they attach little importance to digitization. This could be due to the fact that the implementation of such technologies involves considerable investment, and the necessary resources or expertise are not always available.
Optimizing the supply chain – more information in the 21st SupplyX Barometer
What obstacles do companies still have to overcome on their way to an optimized supply chain? What do they see as the biggest challenges? Find answers to this as well as more information in our 21st SupplyX Barometer “Need for optimization along the supply chain”, available here for free download.