Leverage Supply Chain Innovation to Regain a Competitive Edge
Every industry sector in every country has felt the effects of innovation. Yet 84% of supply chain and logistics professionals report their organizations are lagging or are just average when it comes to digital maturity. The irony here is getting raw materials from point A to point B is the backbone in a whole range of industries. Supply chains play a crucial role in diverse market sectors from construction to retail. Logistics-focused innovation is necessary to be prepared for tomorrow’s competitive markets.
Supply chains impact everything
A company’s logistics touch every aspect of business profit or loss. Supply chain costs are traditionally one of the highest expense categories. It helps to think of this highly complex and sensitive ecosystem stretching across an organization like the roots of a tree. Because it isn’t in plain sight, it’s easy to miss or discount the impact of a supply chain. But make no mistake — without a healthy root system, the whole tree can wither and die.
LynnCo helps create and sustain the healthy supply chain ecosystem by uncovering the root cause of logistics inefficiencies holding companies back. One of the biggest drivers of inefficiency is the lack of enthusiasm for digital transformation in our industry. Deploying the right technology and streamlining approval and ordering processes can help weed out back-office inefficiencies, ultimately leading to successful growth.
Innovation is your road to success — and survival
Despite the importance of technology to today’s modern supply chain infrastructures, The Hackett Group found that the logistics industry is lagging behind digital innovation trends.
- While 94% of supply chain leaders expect digital innovation to affect their future success, less than half have prepared a technology strategy.
- 66% say advanced digital analytics will be “critically important” to supply chain logistics in the coming years.
- Around 56% of supply chain leaders expect advanced analytics to help reduce costs.
Even if digital innovation isn’t mainstream in the logistics industry, leaders are already bracing themselves for the change. Implementing the right technology can help your business improve forecasting accuracy and product tracking while optimizing transportation performance. This means reduced logistics costs for you and on-time deliveries for your customers.
As supply chain complexities increase, technology is necessary to help cut costs and optimize efficiencies. Your supply chain is alive with nuance, and technology can help you make better decisions faster. Inbound Logistics agrees, stating, “There is a vast spectrum of technology that can benefit your organization.”
The future is coming — fast
What’s next for the supply chain and logistics industry? ABI Research predicts a new influx of technology disruption from transportation management systems (TMS) will completely transform traditional business practices. New supply chain complexities, like increased globalization, have the potential to drive the TMS market to $25 billion in the next five years.
TMS platforms can eliminate manual supply chain management, reduce transportation costs, and improve network-monitoring time. TMS integrate more effectively with enterprise resource planning (ERP) at the corporate level with vendors like Oracle, Microsoft, and SAP. Deloitte predicts artificial intelligence (AI) will also have new roles in our supply chain architectures in “interconnected digital supply networks.”
LynnCo remains committed to new innovations in supply chain management. We assess, consult, and create strategic roadmaps to help companies implement technology to improve supply chain management. We can help your company embrace the spirit of end-to-end digital innovation and help you move forward effectively in challenging times.
