Reuters: Supply Chain Execution Systems Investments Surge
August 11, 2021
research from Reuters Events Supply Chain in partnership with Blue
Yonder reveals the priority strategies and investments for supply chain
execution and risk management within transportation and warehousing.
Following a year of intense changes in the logistics industry, The State
of Supply Chain Execution Report 2021 analyzed the anonymous responses
of supply chain professionals and found that the COVID-19 pandemic,
customer centricity, rising e-commerce complexity and costs, need for
Direct-to-Consumer (D2C), and the risk of financial peril are propelling
retailers, manufacturers and logistics service providers (LSPs) to
“As the economy transitions to a post-pandemic environment, retailers,
manufacturers and LSPs are transforming their transportation and broader
supply chain operations to address their most pressing supply chain
challenges,” said Raj Patel, senior director, 3PL Industry Strategy,
Blue Yonder. “In the long term, investment in execution systems like
Transportation Management Systems (TMS) and Warehouse Management Systems
(WMS), as well as end-to-end visibility, automation, and cloud
strategies will help them – and their customers – build more
sustainable, resilient and agile organizations for the future.”
63% of retailers/manufacturers stated that dual-sourcing was a favored strategy for risk management moving forward. Constraints on the availability of raw materials caused supply side disruptions, even for those with distributed manufacturing facilities.
Environmental concerns are also being considered when planning for supply chain risks. Over half (53%) of retailers/manufacturers and half (50%) of LSPs plan to invest in sustainability as a strategy for risk management.
Companies Prioritize Digital-First Practices and Technology
In the current supply chain environment, companies are moving away
from legacy systems and prioritizing technologies that enable visibility
for customers and their operations, automate processes and support
Roughly half (48%) of retailers/manufacturers and more than half (57%) of LSPs have a robust cloud strategy in place, helping to create high levels of infrastructure agility that on-premise, legacy technology systems can’t achieve.
“In the current supply chain environment, companies need good visibility
into their transportation/ freight and partners that help them operate
in a very agile, resilient manner. Knowing this, we’ve been investing in
technology that provides good visibility for customers and their
operations; tools that support enterprise agility; supply chain
automation solutions; and zero-trust IT security tools. Combined, these
technology solutions help our customers address their most pressing
supply chain challenges while also helping them build stronger, more
resilient organizations for the future,” said Richard Ebach, CIO
Americas, DB Schenker.