Only 4% of supply chains are ‘future-ready’ when it comes to technology, talent and processes

A recent report conducted by Accenture among supply chain leaders revealed that when it comes to being advanced in terms of technology, talent and processes, only 4% of organisations meet this level – and only 34% are expected to reach the future-ready status by the end of 2023.

What is considered the "future" for the supply chain is still not a reality for a big portion of companies surveyed. Accenture involved 1,100 senior executive and supply chain leaders across 13 industries and 11 countries to develop the report.

The report showed that out of the 81% of Chief Supply Chain Officers asked, the pandemic revealed their biggest vulnerabilities (with some not even considered vulnerabilities before) and exposed how the supply chain could be the biggest reason for success for an organisation or its main reason for failure. 

As the supply chain can be considered the 'lifeline' of the business, procurement professionals focus is on helping transform it to become more resilient with all decisions needing to consider the customer's needs, environmental and social responsibilities, and all the way from sourcing to third-party logistics partners.

 

What Supply Chains Need to Become Future-Ready 

 

The research revealed that there are four levels of maturity when it comes to business operations': stable, efficient, predictive and future-ready.

Each of these levels progressed when subjected to more sophisticated technology, talent, processes and data insights. 

For organisations to become future-ready, they need to scale on:

  • Analytics
  • Automation
  • Data
  • Stakeholder experience
  • Artificial intelligence (AI)
  • Agility
  • Leading practices
  • Business and technology collaboration

Most supply chain leaders suggested that their companies were already using all eight characteristics shown above, but they just needed to work on the level of maturity and scale in each one of them. All leaders surveyed were confident that the next two to three years would be the turning point for seeing an increase in business and technology collaboration and leading practices.

Achieving the highest level of maturity possible will mean that the organisation is future-ready. Having this status shows that they can deliver new types of values in the supply chain. And according to the report: "organisations we found to be future-ready showed a 2.8x boost in corporate profitability and 1.7x higher efficiency than those at lower maturity levels. Business and technology collaboration was widely used by 70%, with 69% possessing an agile workforce, and AI is widely used by 54%."

These same leaders also reported a wide-scale use of automation within their organisations over the past three years, which shows that the adoption of a digital-powered and data-driven supply chain goes some way in bringing about success in this area.

To understand how the Maistro platform is helping organisations ensure their supply chain practices are future-ready, get in touch.

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