What Drives Supply Chain Investment?

Trying to keep up with customer expectations is driving retailer investment, while agility and innovation are driving manufacturers’ investment in their supply chains, according to a joint survey of supply chain executives from JDA Software and KPMG LLP. The 2018 Digital Supply Chain Executive Survey conducted by Incisiv finds one force remains constant across manufacturers and retailers alike: More than half identify the need for real-time product visibility as the leading driver in digital supply chain investment.

Here are the key findings of the survey:

  • 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.
  • 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.
  • Retailers express the need for end-to-end traceability (53 percent) with the ability to manage new fulfillment nodes (50 percent).
  • The top inhibitors for retailers include lack of management commitment (70 percent), limited IT budget (60 percent), and no integrated strategy (30 percent).

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