Digital transformation efforts in the supply chain will accelerate in 2022 and beyond, despite issues of disruption.
That’s according to a new report, “IDC FutureScape: Worldwide Supply Chain 2022 Predictions,” which predicts accelerating IT spending as technology is seen as a way to alleviate many business processes or labor shortages. that affect supply chains today.
While some companies have had to cut IT spending in the short term to survive supply and / or demand shocks in the early stages of the COVID-19 pandemic, IDC has seen a strong rebound in on-chain spending. supply in 2021. The company said it fully expects digital transformation efforts in the supply chain to persist, if not accelerate, with companies making supply chain investments over the course of this period. 2022 and subsequent years.
Here is IDC’s forecast for the global supply chain for 2022 to 2026.
1. By the end of 2022, half of all manufacturing supply chains will benefit from supply chain resilience, resulting in a 10% reduction in the impact of disruption.
2. By 2023, 50% of all supply chain forecasts will be automated through the use of artificial intelligence, improving accuracy by five percentage points.
3. By 2024, to improve long-term supply chain profitability, 70% of global supply chain manufacturers will invest in software tools to support sustainability and circular economy business models.
4. By 2025, 30% of all direct provisioning transactions will be based on capacity availability rather than units or volume.
5. Due to the pressure to improve service, by 2026, 60% of original equipment manufacturers Forbes Global 2000 will establish a spares control tower approach, increasing initial repairs by 35%. and reducing spare parts inventories by 12%.
6. By the end of 2022, chronic labor shortages will prompt 75% of supply chain organizations to prioritize investments in automation, resulting in productivity improvements of 10%.
7. In order to improve delivery speed, agility and visibility for B2B and B2C customers, 35% of manufacturers will invest in order management software by 2024, resulting in a 25% improvement in sales. deadlines and completeness. (OTIF).
8. By 2025, 40% of Forbes Global 2000 organizations will invest in supply chain systems to increase the speed of information and inventory to improve last mile delivery efficiency and improve customer experience.
9. By 2026, as part of long-term resilience planning, 30% of logistics companies will have geo-diversified their manufacturing centers and suppliers to complement current supply chain operations.
10. By 2024, cloud adoption in the supply chain will increase by 25 percentage points, in part due to the presence of cyber threats.
âDisruption has been a major focus again in 2021 and has largely validated the supply chain transformation journey that so many companies are engaged in,â said Simon Ellis, program vice president, strategies global supply chain at IDC. âIn fact, companies that have aggressively pursued the supply chain will continue, must continue, on its path of almost unprecedented levels of change with digital transformation at the center of efforts to both improve efficiency and improve sustainability. efficiency and be resilient to new inevitable disruptions. “