In the latest edition of the IMD Global Supply Chain Survey, senior executives assessed 24 pivotal trends in supply chain management, shedding light on their organizations’ standing concerning these trends and their evolution over the last six years. The survey offers significant insights into the shifting priorities within the supply chain landscape.
Pre-2020, the focal point in supply chain management centered around the swift rise of digitalization, while traditional aspects like integrating supply chain with business strategy, supply chain segmentation, and the consistent application of sales operations and planning (SO&P) processes held sway in most organizations.
However, in the wake of turbulent global economies and supply chain disruptions, newer subjects such as supply chain resilience, cybersecurity, and talent retention in the supply chain organization have emerged as additional high-priority concerns for supply chain executives by 2022. This proliferation of key topics within the supply chain realm has led to an expanded agenda for these executives. Notably, many surveyed respondents highlighted substantial gaps between the perceived importance of these topics and the progress made in their implementation, indicating the burgeoning workload and the gradual pace of tangible change within these domains.
Drawing insights from around 350 experts across diverse industries in the latest survey, it is evident that only a few topics have notably decreased in significance over the years. While blockchain’s relative importance for supply chains witnessed a prominent decline, the weightage of AI, last-mile delivery, and micro-fulfilment solutions, though decreased, still retained their overall importance. Conversely, maintaining the talent pool in the supply chain organization, compliance and governance, and supply chain sustainability have steadily ascended in significance, reflecting a shifting landscape where priorities continually evolve. Remarkably, the globalization of supply chain footprints is a rare topic where the progress achieved now surpasses its relative importance.
Across the six-year span, notable gaps persist in critical competencies such as integrating supply chain with business strategy and implementing S&OP across the entire supply chain. While advancements have been noted in digitalization, big data utilization, real-time data application, and AI, the divergence between their importance and degree of implementation remains substantial.
Newly introduced questions in 2022 about supply chain resilience and cybersecurity underscore their importance, ranking second and third respectively among global supply chain leaders’ concerns.
Despite some progress, the implementation gaps for over half of the priorities in the survey haven’t significantly narrowed between 2019 and 2022. The most significant gaps between the importance of a topic and its implementation revolve around three core areas: integration between supply chain and business strategy, digitalization of supplier interactions, and bolstering sustainability.
Interestingly, our data indicates notable strides in implementing AI and IoT for supply chain management and digitalizing collaborations with partners and suppliers, even as the importance of these topics has plateaued or slightly diminished. This suggests a mainstream adoption of innovative technologies.
However, certain cutting-edge topics in digitalization and innovation, such as digital twins, control supply towers, and autonomous vehicles, have yet to reach critical implementation mass in global supply chains. Close monitoring is essential to gauge their significance and maturity in the coming years.
In conclusion, supply chain executives are urged to evaluate the significance of the 24 supply chain trends relative to others and assess their organization’s progress in addressing these trends. This evaluation will prove pivotal in navigating the evolving supply chain landscape effectively.`
Breaking supply chain news is just a click away at The Supply Chain Report. Enhance your knowledge of international trade at ADAMftd.com with free tools.
#IMDGlobalSupplyChain #SupplyChainTrends #Digitalization #AIInSupplyChain #SupplyChainResilience #CybersecurityInSupplyChain #TalentRetention #SustainableSupplyChain #SOPImplementation #BigDataInSupplyChain #LastMileDelivery #MicroFulfillment #SupplyChainGovernance #SupplyChainCompliance #BlockchainInSupplyChain #SupplyChainTalent #SmartLogistics #AutonomousVehiclesInLogistics #DigitalTwins #SupplyChainInnovation #SupplyChainEvolution #GlobalSupplyChains
