Skin ADV

eng
About   |   Newsletter
Demand & Supply Chain Management Evolution




17 May 2018
JDA, KPMG Supply Chain Survey Reveals Contrasting Digital Transformation Strategies for Retailers and Manufacturers

JDA
JDA

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.

 

 

 

 









 
           Circular Economy     Industry 4.0     Blockchain 

     Internet of Things     Omni Channel 


Join us on


News & Trends
 

Last update 5 May 2019
Solid rise in new orders drives further improvement in operating conditions
   Source: Markit US Manufacturing PMI   -  IHS Markit
United States 


Chemicals & Pharmaceuticals

Even industries driven by the strictest safety and environmental regulations are capable of reducing their costs. Our solutions improve each phase of the chemical logistics supply chain, to increase your supply chain performance, improve predictability and mitigate potential problems before they arise. B...


Creating a Competitive Edge through Service

This is part 3 of our series on meeting increased competitive threats. In part 1 of this series we discussed the reasons behind increased competition. Part 2 examined early warning signs the competition is gaining on ...


Education
 
 2 
Jun
2019
World Class Sales and Operations Planning
     Georgia Tech Global Learning Center
 4 
Jun
2019
Supply Chain Project Management: Fundamentals
     Georgia Tech Savannah Campus
 6 
Jun
2019
Supply Chain Risk Management
     Georgia Tech Global Learning Center
11
Jun
2019
Supply Chain Project Management: Vendor Selection & Management
     Georgia Tech Savannah Campus
18
Jun
2019
Supply Chain Project Management: Effectively Managing Transformation Projects
     Georgia Tech Savannah Campus

Local & Regional Agenda
 


Resources
 
PPG INDUSTRIES, LTD.

Company Established in 1883, PPG Industries manufactures protective and decorative coatings, sealants, adhesives, metal pretreatment products, flat glass, fabricated glass, continuous-strand fiberglass products, and...

EU businesses say goodbye to UK suppliers as Brexit bites into key relationships

Nearly two-thirds (63%) of EU businesses expect to move their supply chain out of the UK Two-fifths (40%) of UK businesses are looking to replace their EU suppliers 25% of large UK businesses* have spe...


International Agenda