SYSPRO Study Highlights External Collaboration Key to Realign Disconnected Supply Chain Links

SYDNEY – April 4, 2022. SYSPROa global ERP software provider, announced new research findings from its latest global research survey, which explores the challenges and solutions to the ongoing supply chain disruptions manufacturers and distributors face today .

Conducted towards the end of 2021, the online survey gauged the sentiment of 163 manufacturing and distribution industry professionals at various management levels across EMEA, Americas and APAC. The report reveals four key themes and highlights the need for a long-term digital strategy that incorporates better customer focus, external collaboration and data-driven decision-making to create a rebound.

Theme 1: The disconnect between investing in internal efficiency and external collaboration

With global lockdowns and ongoing disruptions leading to increased pressure, it’s no surprise that 70% of businesses have experienced supply chain disruptions in the past few years. At the same time, 60% of companies were unable to engage and collaborate with customers and suppliers in real time. As a result, these companies were often unable to deliver to their customers.

Pre-pandemic technology investments and outdated business models were partly responsible for these lingering challenges. In response to the pressures, companies have invested in short-term technological solutions to deal with the immediate impact of the pandemic. Although 65% of companies invested in business systems to meet order requirements and 64% of companies invested in business systems to manage inventory control, inventory supply was not protected.

According to Paulo De Matos, Chief Product Officer at SYSPRO, “While investing in internal efficiency is crucial for any business, customer and supplier engagement should also be a top priority. What we are seeing now is c “is a ripple effect of supply chain disruptions. No matter how companies try to up their game internally, if they are unable to communicate effectively with their external ecosystem and respond to changes in the supply chain, companies can fall behind.

Theme 2: Digital roadmaps do not align with execution

In response to the immediate impact of the pandemic, many companies have considered developing a digital strategy. The survey found that when developing these roadmaps, 69% of companies were considering a digitalization strategy aimed at improving existing business processes through digital technologies. However, only 29% of companies have embarked on a full-fledged digital transformation strategy.

In roadmaps, 48% of companies committed to improving customer service, but only 23% of companies included external collaboration (i.e. the ability to talk to customers) as part of their digital strategy.

When exploring digital strategy execution, the survey revealed a clear disconnect. With 34% of companies focused on investments to improve internal operations management, quality management and warranty management, and 33% of companies looking to improve procurement, supply and inventory management, only 18% of companies have invested in business systems to improve external collaboration. Additionally, 50% of businesses chose not to invest in systems at all and relied on current systems to keep lights on. to.

As noted by De Matos “Digging deeper into the reasons for the disconnect between digital strategy and digital execution, we found that 71% of companies outsourced it to external service providers without a real understanding of the key business challenges or from the day-to-day reality of what was affecting the business. Companies now have the opportunity to prepare for the future and review their digital roadmap with the help of trusted advisors and industry experts. Of course, the inclusion of external collaboration solutions will be key.”

Theme 3: Supply chains are not globally competitive

When asked about technology investments, 47% of companies had invested in IoT sensors and networks. At the same time, only 20% of companies had invested in data analytics tools to process and analyze the data they collected, while only 5% of companies had looked into AI and ML to long-term benefit from data collection. .

“Business models as we know them are changing before our eyes. The classic business versus business model is giving way to supply chain versus supply chain where simply selling a product is no longer enough to survive in the long run. Manufacturers today should ideally bring together a team of companies to offer the best product and the best service at the best price. To achieve this successfully, the right data insights are imperative,” says De Matos

Theme 4: Customers are placed at the end of the supply chain and not at the center

Exploring the ripple effect of the above challenges, it was no surprise that only 22% of companies experienced revenue growth and only 26% of companies achieved customer satisfaction in the last few years. last 12 months. “Customer experience can make or break a business. While companies have improved their operational visibility through technology investments such as IoT or even looked at alternative e-commerce sales channels, the reality is that a continuous, real-time external collaboration with suppliers and customers is vital A balance along the supply chain can be achieved when a customer is placed at the center of the supply chain and their experience is not not considered secondary. With real-time insights into customer needs, improved revenue will soon follow,” says De Matos.

“Overall, the study showed that your digital roadmap needs to be carefully aligned with changing business needs to meet today’s challenges. Going back to old business models or investing in technology to keep the “lights on” will no longer be enough. An ERP system can help manufacturers and distributors go digital by providing the platform that solves the biggest impact areas; implementing and automating business systems to manage procurement and supply policy changes, distribution and lead time planning; and analytics providing real-time data to improve decision-making. Although there have been downtimes, manufacturers now have the opportunity to make changes to improve operational efficiency and thrive now and in the future,” concludes De Matos.

To view the full report, visit this link

Shirlene J. Manley