Technology is driving tremendous change for supply chains across the spectrum. From gaining visibility into purchase orders to connecting end-to-end processes, shippers have a growing number of tools at their disposal to optimize operations. But are they making the most of them?
In a recent customer survey, AGL uncovered several key technology trends that are shaping supply chains in 2019.
- Supply chains are falling short of expectations for many shippers.
In a supply chain environment that keeps getting more complex and unpredictable, it’s no surprise the majority of shippers see room for improvement. In the survey, 71% say there are areas of deficiency in their supply chains and making the appropriate corrections is a struggle.
- Many shippers say it’s time to overhaul their processes.
All the technology in the world won’t make a difference if you’re trying to enhance broken processes. Nearly two-thirds (65%) of the businesses surveyed said that some of their business units could use process engineering. For shippers, mapping the supply chain can be a helpful first step toward optimization. By understanding all the modes, touchpoints and potential bottlenecks across your logistics, your business can find efficiencies and identify the right tools to keep things running smoothly.
- Purchase order management is the top reason shippers are turning to technology.
Understanding what happens between the time an order is placed and when it’s shipped is critical for planning delivery timelines and managing customer expectations. With many production processes involving multiple steps and dependencies, technology can help provide real-time visibility at the product level. More than half (56%) of shippers said they turned to technology for purchase order management, followed by booking management (30%) and contract management (16%). Another 27% say they’re leveraging technology to improve end-to-end visibility – which starts with a clear view into production.
- Cost and time are the two biggest barriers to a connected supply chain.
Among the half of shippers who have integrated their supply chain systems, cost is the main challenge in building a holistic, technology-enabled operation. Nearly one in five (19%) cited expenses as a major barrier to integration, followed by the time required (14%) and software incompatibilities (11%).
- Reporting is at the top of many shippers’ wishlists.
You can’t improve what you don’t measure, and many tech providers are taking the initiative by building reporting tools directly into their platforms. Those capabilities are highly desired by shippers, with 68% saying they would benefit from detailed business analytics and forward-looking recommendations.
Technology is indispensable for the modern supply chain, but technology alone won’t give businesses the advantage they need. By combining technology with well-designed processes and logistics expertise, shippers can prepare for whatever comes next.