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AI robot using laptop, automating supply chain management. IBM study. - Supply Chain News

Exploring the Trends: AI and Automation Revolutionizing Supply Chain Management, IBM Study Finds

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Exploring the Trends: AI and Automation Revolutionizing Supply Chain Management, IBM Study Finds

by Richie
09/19/2022
in Artificial Intelligence in Trade, Automation & Robotics, Industry, Supply Chain

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In the realm of supply chain management, an IBM Institute for Business Value (IBV) study titled “Own Your Transformation” brings into focus how Chief Supply Chain Officers (CSCOs) are navigating complex challenges stemming from the global COVID-19 pandemic, inflationary pressures, climate variations, and geopolitical events. The study, conducted with 1,500 CSCOs and Chief Operating Officers (COOs), highlights their strategies to fortify supply chains against uncertainties while aiming for sustainable enhancements.

Jonathan Wright, IBM Consulting Global Managing Partner for Sustainability Services and Global Business Transformation, emphasizes the significance of leveraging analytics, AI, and automation in addressing these unparalleled challenges. “CSCOs should harness analytics, AI, and automation initiatives to construct intelligent, resilient, and sustainable supply chains,” notes Wright. “These technologies empower organizations to collect data, detect risks, validate documentation, and provide transparent audit trails, even amid high inflationary periods, while concurrently managing environmental impacts.”

Key insights from the study include:

  • AI and Automation Adoption: Nearly half (47%) of surveyed CSCOs have recently introduced new automation technologies, enhancing predictability and flexibility within their supply chains. AI deployment aids in monitoring and tracking performance, enabling interconnectivity among partners and facilitating sustainable operations.
  • Sustainability as a Priority: Sustainability emerges as a critical concern for CSCOs, ranking third among imminent challenges, following supply chain disruptions and technology infrastructure. Over half (52%) place sustainability at the top of their priority list, with 50% anticipating accelerated business growth through sustainability investments. Notably, pressure for transparency on sustainability practices is felt significantly from investors (56%), board members (50%), and customers (50%).
  • The Innovators: Approximately 20% of respondents identified as “The Innovators” are spearheading data-led innovations to brace for an uncertain future. This segment outperforms peers, reporting 11% higher annual revenue growth. Key attributes of this group include streamlined automated workflows across functions and partners, extensive modernization of technology infrastructure, heightened focus on cybersecurity, and deeper integration of sustainability initiatives.

The complete study, conducted in cooperation with Oxford Economics, surveyed CSCOs and COOs across 35+ countries and 24 industries. The study’s findings and insights underscore the evolving landscape of supply chain management in the face of unprecedented challenges.

For access to the full study report, visit IBM Institute for Business Value.

Methodology: The IBM Institute for Business Value collaborated with Oxford Economics for the 26th edition of the IBM C-suite Study series, surveying 1,500 CSCOs and COOs across various countries and industries.

About the IBM Institute for Business Value: The IBM Institute for Business Value, serving as a strategic think tank for IBM for the past two decades, aims to deliver research-backed insights to aid leaders in informed decision-making. It conducts surveys, interviews, and engagements with executives, consumers, and experts, synthesizing their perspectives into actionable insights.

For more insights and updates, follow @IBMIBV on Twitter or visit the IBM Institute for Business Value on LinkedIn.

Source: IBM

Discover supply chain news insights on The Supply Chain Report. Enhance your international trade knowledge at ADAMftd.com with free tools.

#SupplyChainInnovation #AIinSupplyChain #AutomationForSustainability #CSCOLeadership #IBMInsights #SmartSupplyChains #SustainabilityInSupplyChain #TechDrivenSupplyChain #GlobalBusinessTransformation #DataDrivenInnovation #SupplyChainResilience #SupplyChainSustainability

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The Supply Chain Report is your essential daily news website, serving as a trusted source for comprehensive coverage of the complex and ever-evolving global supply chain dynamics. Our expert team delves into the intricacies of international trade, manufacturing, logistics, importing, exporting, and supply chain management; providing in-depth analysis and up-to-date news on the latest trends, disruptions, and technological advancements affecting industries worldwide. From detailed reports on international trade through to insights into procurement strategies and inventory management, we offer valuable content that helps professionals stay informed and make knowledgeable decisions in a fast-paced market.

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