Digital Supply Chain Trends: Nearly Half of Companies Implementing Supply Chain Traceability Technology
In 2023, the use of technology is continuing to sweep the realm of supply chain management. Businesses are increasingly integrating cutting-edge technologies, particularly cloud-based software, traceability solutions, and advanced analytics, to enhance visibility and streamline their supply chains. Around 40% of businesses that QIMA surveyed reported that improving traceability was a major reason for investing in increased supply chain digitization. This shift has a profound impact, not only transforming how companies operate but also amplifying their profitability.
Fig. 1. “Which of the following technologies has your company already implemented / is planning to implement in your supply chain?”
Traceability solutions are among the top three most popular supply chain technologies, in addition to cloud-based software and advanced analytics. This shows the increasing global focus on improving supply chain visibility via technology.
Supply Chain Visibility Named as Top Reason for Digitization
In 2023, more than ever before, companies are naming supply chain visibility as a top reason to invest in digitization.
Among businesses we surveyed, 45% have already implemented or are in the process of implementing traceability solutions, placing traceability solutions among the top three most popular technologies. These solutions offer a powerful tool to track and trace products as they move through the supply chain, enabling businesses to ensure quality, compliance, and transparency.
Leading the charge in technology adoption is cloud-based software, with 52% of businesses either implementing or having already implemented this versatile tool. Cloud-based software, a broad category, streamlines data management, allowing companies to access and share critical information in real-time, promoting collaboration and efficiency.
Advanced analytics, a close third in popularity at 34%, empowers businesses to leverage data for actionable insights. This technology offers the capability to make data-driven decisions, optimizing operations, and uncovering opportunities for cost savings and process improvements. In an era of ever-increasing data generation, advanced analytics is a vital asset for staying competitive in the market.
These findings underscore the growing importance of digital solutions in supply chain management, providing companies with the means to enhance visibility, increase efficiency, and ultimately bolster their bottom line. As technology continues to advance, businesses are embracing these tools to stay ahead of the curve and meet the demands of an ever-evolving marketplace.
In particular, supply chain visibility stands as a pivotal component in achieving compliance, especially in the context of the burgeoning ESG (Environmental, Social, and Governance) legislation. With stricter regulations emerging globally, companies need a clear line of sight into their supply chains to ensure adherence to environmental standards, fair labor practices, and ethical sourcing. By leveraging technology and data-driven solutions to monitor every link in the supply chain, organizations can proactively identify and address potential compliance issues. This effort bolsters brands’ commitments to sustainability and ethical business practices in alignment with evolving ESG requirements.
Key Figures
QIMA’s H1 survey of more than 250 businesses shows that:
45% of respondents are implementing technological tools designed to improve supply chain visibility.
Traceability solutions are among the top three most popular supply chain technologies.
Cloud-based software is the most popular technology companies are implementing, with over half of respondents noting they have already implemented or are planning to implement the tool.
Read the full report: Q3 2023 Barometer
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