Early adopters of ‘smart supply chain’ technologies – which provides data on customer demand, inventory levels and potential risk – have seen cost reductions of 10% to 15%.
PA Consulting surveyed over 100 cross-sector global supply chain leaders and found that 69% believe that their supply chain approach is not innovative enough, while 79% believed their organisation do not currently have the right mix of skills and abilities to deliver smart supply chains.
Less than half of senior leaders surveyed (47%) said they were specifically interested in the potential of smart supply chains to reduce operating costs.
George Marinos, smart supply chain expert at PA Consulting, said: “Applying digital technologies in the supply chain enables businesses to break new ground in terms of performance and customer focus, sparking a passion for innovation in a fast-changing world.
“They create direct, real-time connections with customers so that organisations can give them precisely what they need at the right time. This generates real value. As a result, our clients commonly see benefits that far surpass their original requirements.”