Next-gen Supply Chains
Introduction
The evolving landscape of supply chains is marked by continuous disruptions from various sources, including geopolitical tensions, macroeconomic uncertainties, and climate change. This report, sponsored by GEP and authored by Economist Impact, explores the challenges and opportunities in supply chain management.
Key Findings
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Risk Perception
- Anticipated Disruptions: 55% of executives expect significant supply-chain disruptions in 2024.
- Major Disruptors: Macro-economic uncertainty and geopolitics are cited as the primary concerns, with 63% of executives flagging these issues.
- Other Risks: Regulatory changes, labor shortages, and cyberattacks are additional concerns.
- Skill Set: The expanded set of risks requires a broader skill set among supply-chain managers.
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Role of Technology
- Digital Solutions: 68% of executives recognize the importance of digital solutions in enhancing operational efficiencies and supply-chain resilience.
- AI and Generative AI: 63% of executives prioritize generative AI for resilience, while only 18% focus on efficiency and cost reduction.
- Human-Technology Synergy: Human insight and strategic foresight are crucial when complemented by AI and digital tools.
- Job Opportunities: 41% of executives believe AI integration creates new job opportunities, emphasizing the need for a workforce skilled in navigating technological advancements.
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Strategic Priorities
- Supplier Relationships: 73% of executives consider improving supplier relationships a priority.
- Collaboration: Collaboration with supply-chain partners is essential for resilience and effective operations.
- Investment in Technology: Over 57% of businesses plan to invest in AI and 44% in advanced automation in the next year.
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Supply-Chain Leadership
- C-Suite Representation: Only 41% of the most senior procurement and supply-chain executives are at the C-suite level.
- Emphasis on Functionality: Greater representation of procurement and supply-chain functions at the C-suite level is necessary for effective supply-chain management.
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Challenges and Opportunities
- Optimization vs. Challenges: While generative AI offers optimization and automation, it also poses challenges, with 67% of executives planning to invest up to 25% in generative AI.
- Interoperability: Ensuring interoperability between systems and between people and systems is crucial for effective technology implementation.
Conclusion
The report emphasizes the need for a balanced approach that leverages both technology and human expertise to navigate the complex and uncertain supply-chain environment. By focusing on resilience, collaboration, and strategic investment, businesses can ensure long-term success and adaptability in the face of ongoing disruptions.
This summary captures the key points and data from the report, providing a clear and concise overview of the current state and future direction of supply-chain management.