82% have upped supply chain investments in quest for efficiency
On top of increasing budgets over the last three years, 95% of supply chain professionals expect to maintain or increase their technology spend in 2023 and 2024
A new survey from Reuters Events, Supply Chain has underlined the importance of technology investment in the sector, as it has found that 82% of respondents increased spending on technology over the last three years in a search for greater operational efficiency.
Furthermore, the research, which canvassed more than 468 logistics and supply chain professionals from around the world, found 95% expect to maintain or increase their investment level over the next 12 months, with 45% projecting an increase and 50% keeping the same level of spend.
The primary objective from this capital expenditure is to enhance operational efficiency.
Respondents ranked increased efficiency as the top opportunity created by putting in place new technology solutions. They also placed improved operational efficiency, accuracy, and scalability as the top impact they had experienced from deployments of visibility tools over the last three years, underlining this direction.
This focus also shows up in the main investment areas reported by professionals over the last three years. Supply chain management systems lead the pack in this regard, being chosen by 64%, followed by digitalising documentation (48%), warehouse automation (39%), and inventory management data analysis (35%).
Even with this increased focus and spend, the wider perception in the industry is that there could be more done in this regard. A lack of resources was noted as the top challenge to implementing visibility technologies, with 53% finding this an impediment.
An additional structural issue widely noted by respondents when it comes to improving technology deployment and employment is the skillset of the labour force, with training highlighted as a core area for further focus.
The survey found the second most prominent barrier to improving visibility through technology was workforce resistance to change (38%) and 77% noted that provision of extensive training on processes, systems and technologies would improve transitions and implementations.