To implement effective supply chain response planning to manage today’s complex sources of supply and prevent disruptions, companies need adequately networked solutions. First, companies require increased visibility in the form of clean, accurate data at every step of their supply chains, as well as the ability to analyze that data in a timely manner. Ultimately, they also must be able to share the insights that result from that analysis in a user-friendly and actionable format that is accessible to stakeholders across the organization’s functions.
Advanced technologies are available to enable more effective supply chain response planning and execution. Several capabilities, including cloud infrastructure and real-time analytics enabled by AI and machine learning, make it possible for businesses to analyze large, distributed datasets, both across a company’s departments and among its many supply chain partners. In fact, a Gartner survey of supply chain leaders that was released in April 2022 shows that emerging and maturing supply chain technology will be a major source of competitive advantage for companies in the next few years, with 60% of respondents saying technology is a major differentiator today. Businesses are especially focusing on integrating supply chain technologies, upgrading legacy systems to accommodate modern workloads, and investing in tools that aid in human decision-making.
With the right data and analytics approach, companies can build a solid foundation for their supply chains, paving the way for a smooth response to a wide variety of market conditions. Relying on a single source of truth through real-time visibility into the entire supply chain process is the cornerstone of these efforts. As advancements in AI and machine learning capabilities continue to grow, companies can take advantage of predictive insights that allow them to peek around corners and anticipate future issues. By 2026, more than three-quarters of supply chain management application vendors will deliver embedded analytics, AI and data science capabilities in their offerings, according to a Gartner prediction.