Digital transformation considered the leading element of innovation in the supply chain
Forty-seven percent of supply chain professionals define innovation as “digital transformation”, with improved analytics, visibility technology and robotics as top priorities for 2021
In a new survey from Kenco Logistics, supply chain professionals were shown to be making investment in their own digital transformations, despite facing tightened margins and unprecedented demand volatility during the pandemic.
With the new challenges of 2020 and into 2021, companies are prioritising solutions that streamline processes and deliver actionable insights. Forty-three percent of participants ranked supply chain visibility technology as a high priority, with 28% ranking predictive and adaptive analytics highly and 21% focussing on robotics, automation and emerging solutions.
When asked how much they are willing to invest in innovation, respondents were prepared to stretch their budgets, with 39% of respondents willing to invest 10-20% more and 31% willing to invest over 20% more. This need for innovation continues when considering a 3PL partnership; 55% of all survey respondents said that when evaluating 3PLs, innovation must be a core competency.
“What we’re seeing is an industry that is prepared to invest in digital technologies and innovation to meet the challenges of today’s customer demands,” said Kristi Montgomery, Vice President of Innovation, Research and Development at Kenco. “The pandemic has highlighted the need for innovation at every level of the supply chain and has accelerated many companies’ digital transformation initiatives by several years. It’s only logical, then, that most of our participants are more than ready to extend their budgets to remain competitive, and it’s up to 3PLs to keep up.”