Manufacturers Plan to Boost Budget for Supply Chain Digitization - eMarketer

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Manufacturers Plan to Boost Budget for Supply Chain Digitization

Visibility into the supply chain adds the most value

May 31, 2016

Migrating analog processes and data to digital technologies has become increasingly valuable for retailers and manufacturers that want to more closely monitor their supply chain. According to research, well over half of such firms expect to step up dollars for supply chain digitization.

Expected Change in Investment in Supply Chain Digitization According to US Supply Chain Professionals, March 2016 (% of respondents)

Software firm and consultancy JDA Software Group surveyed 203 US supply chain professionals in the manufacturing and retail verticals between January and March 2016.

Most anticipated ramping up dollars toward digitizing their supply chain over the next three years. More than one-third said they expect to increase investment moderately, while 25.9% said they plan to do so significantly.

Meanwhile, of those respondents who said they would decrease spend, 13.8% said they’ve put in enough dollars already. Just 2.9% felt digitization is not a priority.

The study also uncovered areas where supply chain digitization has steered the most value. More than half of those surveyed said supply chain visibility (58.6%) and advanced analytics (51.9%) had a critical impact. Aeas such as radio-frequency identification (RFID) and augmented reality were less valuable.

The internet of things (IoT) drove results for around three in 10 respondents. Many retailers and manufacturers use this ecosystem of internet-enabled measures and levers to help monitor supply chain. In a separate study from August 2015, Retail Systems Research found that 54% of retailers worldwide feel IoT is positioned to critically impact the way companies do business in the next few years.


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