By Nicholas Greene
A survey has found than less than half of the 1000 global companies surveyed use technology extensively in their emerging market supply chains, despite the fact that there is a clear correlation between use of technology and business growth.
The survey, ‘Supply Chain Success Factors in Emerging Markets’, was undertaken by Accenture.
This figure was much higher among those companies identified by Accenture as “supply chain leaders”, with some 73 per cent of companies utilising technology extensively in their supply chains, compared with 31 per cent of lower performers.
The figures support the hypothesis that companies leading in the new world economy are those making the best use of new technologies and automation tools. The study showed that companies with leading supply chains are more than twice as likely to generate stronger growth (of 20 per cent or more) in emerging markets in the past two years, as those with average or low-performing supply chains.
“Volatile conditions continue to complicate growth and production in emerging markets and the strategic use of digital technologies in supply chains, particularly big data analytics, can be instrumental in providing the up-to-date information needed to make decisions and respond rapidly,” said Mark Pearson, senior managing director, Accenture Strategy, Operations. “Supply chain leaders make extensive use of technology in their operations and show that enhanced agility turns uncertain market conditions into a source of competitive advantage.”
The research showed that leading companies are more likely to invest in capabilities to improve the operational excellence of their supply chain execution by standardising, streamlining and automating processes, using shared services and modernising IT systems. They are also more likely than lower performers to prioritise investments in their physical infrastructure and customer analytics.
Based on the survey, those industry leaders are not slowing down any time soon, with 22 per cent planning to invest more than $40 million in their supply chains in the next three years.
