PHOENIX--(BUSINESS WIRE)--A joint survey of supply chain executives from JDA Software, Inc. and KPMG LLP (KPMG) reveals that trying to keep up with customer expectations is driving retailer investment, while agility and innovation are driving manufacturers’ investment in their supply chains. The 2018 Digital Supply Chain Executive Survey conducted by Incisiv found that one force remains constant across manufacturers and retailers alike: More than half identified the need for real-time product visibility as the leading driver in digital supply chain investment.
“As Amazon extends from retail into manufacturing and logistics, these industries recognize that the status quo for supply chains is no longer an option for success,” said Kevin Sterneckert, group vice president, innovation strategy and solution marketing at JDA. “The 2018 Digital Supply Chain Executive Survey outlines how retailers and manufacturers are leveraging innovative technologies and strategic alliances to improve speed to market and deliver a superior customer experience profitably.”
The survey found that both retailers (57 percent) and manufacturers (50 percent) include real-time product visibility as a top driver of investment. Retailers express the need for end-to-end traceability (53 percent) with the ability to manage new fulfillment nodes (50 percent), where manufacturers are driven by the need to innovate faster (40 percent), with lower cost to serve (33 percent) through improved planning.
Cognitive/predictive analytics is overwhelmingly viewed as the most disruptive technology by executives for its ability to impact all parts of the supply chain, including forecasting, fleet routing and inventory optimization. Manufacturers view blockchain and autonomous vehicles as the most disruptive technologies, with half of the companies surveyed planning to test these in the next 24 months.
“Companies that offer the best customer experiences and service have raised the bar on expectations, and now many business-to-business companies are expecting the same service levels as today’s consumers,” said Brian Higgins, U.S. supply chain practice leader at KPMG. “How retailers and manufacturers are responding is a prevalent theme in our survey findings, and it should come as no surprise that companies are investing in innovative technologies to remain relevant.”
While retailers succeed based on exceeding customer expectations, many are held back because they lack a clear integrated strategy. The top inhibitors for retailers include lack of management commitment (70 percent), limited IT budget (60 percent) and no integrated strategy (30 percent). In sharp contrast to retailers, manufacturers have the financial resources, but are struggling with internal decision-makers, with 57 percent citing a resistance to change as a top impediment to investment in the supply chain.
“We are all fighting for customer relevance in this age of immediacy and rapid change, and a fast, transparent and nimble supply chain sits at the core of driving relevance,” said Gaurav Pant, chief insights officer at Incisiv. “Retailers and manufacturers need to focus on reducing friction from their customer experience, which requires embracing analytics and an attitude reboot on innovation.”
JDA and KPMG are at the Gartner Supply Chain Executive Conference in Phoenix this week, May 14-17, in booth #307 (JDA) and booth #111 (KPMG), where attendees can access the 2018 Digital Supply Chain Executive Survey results. Copies of the new JDA book, “Retail Reimagined for Dummies," are also available at booth #307.
Survey Methodology
Incisiv collected responses from 60 supply chain executives in the retail and manufacturing industries in February 2018 to determine the findings. Sixty-two percent of respondents are from companies that are worth more than $1 billion, and 75 percent of respondents decide or directly influence supply chain purchase decisions.
Additional Resources:
- Access the 2018 Digital Supply Chain Executive Survey.
- JDA is at booth #307 and KPMG is at booth #111 at the Gartner Supply Chain Executive Conference, May 14-17, 2018.
- Register for our webinar on June 5 at 2:00 p.m. ET with JDA, KPMG and Incisiv on the Top Drivers and Inhibitors in Supply Chain Investment.
About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the independent U.S. member firm of KPMG International Cooperative ("KPMG International"). KPMG International’s independent member firms have 197,000 professionals working in 154 countries. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.
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About JDA Software, Inc.
JDA Software is the leading supply chain software provider powering today’s digital transformations. We help companies optimize delivery to customers by enabling them to predict and shape demand, fulfill faster and more intelligently, and improve customer experiences and loyalty. More than 4,000 global customers use our unmatched end-to-end software and SaaS solutions to unify and shorten their supply chains, increase speed of execution, and profitably deliver to their customers. Our world-class client roster includes 76 of the top 100 retailers, 77 of the top 100 consumer goods companies, and 8 of the top 10 global 3PLs. Running JDA, you can plan to deliver. www.jda.com
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“JDA” is a trademark or registered trademark of JDA Software Group, Inc. Any trade, product or service name referenced in this document using the name “JDA” is a trademark and/or property of JDA Software Group, Inc.
