Did you know that according to Zippia.com only 6% of companies report full visibility on their supply chain? 69% of companies do not have total visibility. With this post-pandemic world, we are now in, we thought we’d explore some more interesting facts about Supply Chains and where you should look at investing to compete and continue a successful future for your business.
Fact 1:
Despite the pandemic, the global supply chain management market is set to grow at a Compound Annual Growth Rate (CAGR) of 11.2% from 2020 to 2027. The market is poised to reach $37.41 billion in 2020. (Businesswire, 2020).
Fact 2:
In the supply chain management industry, 45.1% said that they were investing in warehouse management software and that automation was a crucial element (Statista 2021)
Fact 3:
Covid put a big black mark against a lot of companys’ customer service and disruptions to supply chains. In 2020, the retail sector experienced drastic global inventory misinterpretation. The estimated value for out-of-stock items is $1.14 trillion. Only $626 billion were overstocked. (IHL Group, 2020). The value of inventory distortion costs in the global retail industry by levels in 2020 is $580 million for store level, $512 million for supply chain, and $677 by the manufacturer. (IHL Group, 2020). As a result, 58.6% of retail supply chain executives wanted to entrust more in omnichannel attainment.(Statista 2021b).
Fact 4:
According to McKinsey & Company, the top five planned approaches to enhancing resilience in transportation and logistics are:
1. 53% of executives plan to dual source raw materials. (McKinsey, 2020)
2. 47% of executives plan to increase the inventory of critical products. (McKinsey, 2020)
3. 40% plan the nearshoring and expansion of their supplier base. (McKinsey, 2020.
4. 38% plan to regionalise the supply chain. (McKinsey, 2020)
5. 30% plan to reduce the number of Stock Keeping Units (SKUs) in their product portfolios. (McKinsey, 2020)
Fact 5:
Going off Statista’s statistics from 2021 retail supply chain executives are willing to invest in the following areas;
- 58.6% want to increase investment in omnichannel fulfilment. (Statista, 2021)
- 55.73% productive planning and demand forecasting. (Statista, 2021)
- 52.87% want to enable flexible operations. (Statista, 2021)
- 48.52% want to improve inventory management. (Statista, 2021)
- 40.02% want to invest in real-time supply chain visibility. (Statista, 2021)
- 40.02% want to improve integrated operational planning. (Statista, 2021)
- 37.15% want to invest more in systems to automate risk identification and issue resolution. (Statista, 2021)
- 31.52% want to invest in production and distribution automation. (Statista, 2021)
The above statistics show us that companies are having problems with improving their operational visibility and meeting changing customer demands. They are looking to diversify into Software as a Service (SaaS) and Omnichannel systems to survive in this post-pandemic world, and we couldn’t agree more. BrainStorm implements and develops Software to assist your company and your supply chain to perform better, and be more cost-effective.
Contact us today to find out more.
