Spotlight On: Supply Chains in 2022

Supply-Chains-in-2022-TSI

The 2021 NextGen Solutions report on supply chains was recently released, and we want to take the opportunity to highlight some of the results that will give us a great idea of how supply chains will look in 2022. 

To gather data for the report, a study was conducted by Peerless Research Group on behalf of Supply Chain Management Review. Responses are based on 80 usable surveys. Let’s dive right in! 

 

Use of Tech

As is the case with most industries, tech is now playing a huge role in supply chains. Currently, 66% of survey respondents are now using cloud-based software solutions in their organizations, with the other 34% planning on implementing this in the next 2 years. Only 23% of organizations are currently making use of Blockchain technology, but 77% plan on implementing this within the next 2 years. Most organizations (64%) are using logistics and transportation technologies. 

When it comes to other strategies, solutions and applications organizations are using, popular answers were:

  • 24/7 dashboard visibility of all functions
  • AGV
  • AI
  • Seminars and networking organizations

 

Critical Solutions

Survey participants were asked which one solution will be most critical to their organization over the next two years. 17% said that predictive analytics would be essential. 15% of organizations said that logistics and transport technologies would be their most critical solution. 11% of respondents believed this to be planning technologies. These solutions will help businesses with advanced planning, increased flexibility, and optimized solutions. 

What is driving the implementation of these technologies/solutions? Well, according to respondents, the main drivers are:

  • The need to become more competitive in the market
  • Improving customer service
  • The need to better control costs

 

Benefits of Running Next Generation Supply Chain Solutions

There are an increasing number of benefits organizations can enjoy when implementing tech. These are the top benefits that respondents hope to realize:

  • Cost savings
  • Improved end-to-end supply chain visibility
  • Improved productivity (increased throughput, fewer errors etc.)
  • Better able to meet customer service level agreements/expectations 
  • Better communication/relationships with customers
  • Improved communication/relationships with suppliers

 

The Impact of Covid-19

After a difficult two years of trying to successfully operate during a pandemic, many businesses have decided to make changes to improve their operations and increase their flexibility. So, how has Covid-19 and the current economic climate changed the respondents’ approach to adopting NextGen solutions for their supply chains? 

  • 44% are moving forward with new investments
  • 32% are scrutinizing investments and will move forward with caution
  • 13% plan to upgrade existing NextGen solutions instead of buying new ones
  • 13% are unsure of their plans currently
  • 8% have called off all plans to invest in NextGen solutions for now
  • 8% plan to outsource more of their supply chain operations
  • 4% plan to hold off on investments in NextGen solutions until after the pandemic 

 

If you are planning on adopting an intelligent logistics and transport software, look no further than TSI! Book a demo of our Digital Control Tower today. 

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