New Blue Yonder and Reuters Events report surveys retailers, manufacturers, and logistics service providers
Following a year of intense changes in the logistics industry, new research from Reuters Events Supply Chain in partnership with Blue Yonder reveals the priority strategies and investments for supply chain execution and risk management.
The State of Supply Chain Execution Report 2021 analyzed responses of supply chain professionals and found that the pandemic, customer centricity, rising e-commerce complexity and costs, need for Direct-to-Consumer (D2C), and the risk of financial peril are propelling retailers, manufacturers, and logistics service providers (LSPs) to digitally transform.
“In the long term, investment in execution systems like Transportation Management Systems (TMS) and Warehouse Management Systems (WMS), as well as end-to-end visibility, automation, and cloud strategies will help build more sustainable, resilient and agile organizations for the future,” stated Raj Patel, Senior Director, 3PL Industry Strategy, Blue Yonder.
Pandemic Prompts Reevaluation of Supply Chain Risk Management
From constraints on raw materials to labor shortages to growing cybersecurity threats on distributed networks, pandemic-related challenges have shifted supply chain risk management priorities:
Respondents are hesitant to pursue near/onshoring plans, with only 29% of retailers/manufacturers making an investment.
Environmental concerns are also being considered when planning for supply chain risks. Over half (53%) of retailers/manufacturers and half (50%) of LSPs plan to invest in sustainability as a strategy for risk management, it was revealed in a press statement.
Companies prioritize Digital-First practices and technology investments
With the growth of e-commerce, investment in modern supply chain technologies and new approaches have become essential for businesses to keep pace with shifting trends and customer expectations. The report found that there are various factors driving investment in supply chain technologies and digital-first practices.
In the current supply chain environment, companies are moving away from legacy systems and prioritizing technologies that enable visibility for customers and their operations, automate processes and support enterprise agility, the report concluded.