Supply Chain Planning a Key Priority for Business Resiliency and Agility According to New Research
- Improving resiliency top priority for companies
- 65% of companies see supply chain as a source of competitive differentiation
- 76% of most mature companies are using a form of AI today versus just 1% of the least mature
OTTAWA, May 27, 2020 /CNW/ - Kinaxis® Inc. (TSX: KXS), the leader in empowering people to make confident supply chain decisions in an unpredictable world, today announced the findings of a research study sponsored by Kinaxis and conducted by International Data Corporation (IDC). The global research study explored current and future pressures on supply chain planning and how modern digital technologies can drive supply chain transformation initiatives.
Findings show that supply chain planning drives better performance in the modern enterprise, ringing especially true in today's uncertain and disrupted business climate. Global supply chains continue to undergo almost unparalleled levels of change. With planning at the core, companies are now poised to realize the benefits of digital supply chain transformation.
Supply chain resiliency and agility are top priorities for all companies
- Despite 65% of companies rating themselves highly in terms of resiliency, it remains the largest priority over the next 12 months and the next three years
- The ability to adopt new business models or enter new markets was cited as most important when considering future supply chain capabilities
Supply chain planning as competitive advantage
- 65% of companies believe that their supply chain planning capabilities are a source of competitive differentiation today
- This number falls to 35% by 2023, suggesting that companies either do not view their supply chains as adaptable or they are unconvinced that the resources they have in place today will service them well into the future
Companies with mature supply chains using some form of AI
- 76% of the most mature companies are using a form of AI today versus just 1% of the least mature
- 63% percent of survey respondent companies are still below the transformation maturity midpoint, with lack of supply chain visibility (~16%) and data availability and quality (~15%) as the biggest impediments to improving supply chain planning efforts overall
- Over half of the companies in the survey are still using spreadsheets to facilitate their supply chain planning efforts, speaking to the opportunity to improve planning through a digital transformation that introduces a single version of truth
"After a long history of being relegated to support status, supply chains are now being perceived as a strategic tool for business performance and growth," said Simon Ellis, program vice president at IDC, lead researcher and author of the IDC whitepaper 'Supply Chain Planning Drives Better Business Performance.' "Supply chain planning is at the heart of the modern supply chain and is central to overall transformation. If companies don't get supply chain planning right, they don't get the supply chain right; if they don't get the supply chain right, they risk sales and profits."
Kinaxis helps companies ensure their supply chains are always in sync by connecting data, processes and people on a single Kinaxis RapidResponse platform, leveraging the unique concurrent planning technique. With end-to-end visibility and collaboration tools, teams can shorten planning cycles, cut manufacturing lead times, reduce inventory and improve on-time deliveries. These improvements not only increase the company's supply chain maturity, but also its resiliency.
"In an unpredictable world, it is imperative for companies to prepare their supply chains now, and lean into digital transformation to improve all business operations, including integrated business and supply chain planning," said John Sicard, CEO of Kinaxis. "The impact of technology on the supply chain, and its implications for planning transformation specifically, leads to supply chain resiliency and agility allowing companies to be better prepared to respond to and navigate business disruptions. We are proud to have earned the trust of the top manufacturers worldwide to help them drive better business performance and increase their competitive advantage."
Research Survey Methodology
This IDC whitepaper, sponsored by Kinaxis, explores the results from a research study about current and future pressures on supply chain planning and how modern digital technologies are driving supply chain transformation initiatives. For the full findings, download IDC White Paper, sponsored by Kinaxis, Supply Chain Planning Drives Better Business Performance.
The survey was conducted in the third quarter of 2019 and included 1,839 respondents across three regions and six different sub-industries within manufacturing. Key demographics include:
- Respondents were evenly distributed across Aerospace & Defense, Automotive, CPG, High Tech, Industrial and Life Sciences.
- Respondents were evenly distributed across North America, EMEA and APAC.
- Of the companies surveyed, 16% were large enterprise companies above $5 billion in annual revenue, 70% were medium sized between $1 and 5 billion and 14% were smaller companies between $500 million and $1 billion.
- All respondents either work in or have significant influence over their supply chain and self-identify as either supply chain planners (people doing the actual supply chain planning) or supply chain planning leadership personas.
- IDC White Paper, sponsored by Kinaxis, Supply Chain Planning Drives Better Business Performance in the Modern Enterprise
- Kinaxis eBook, Resilient. Agile. Competitive: Supply chain transformation for lasting innovation
About Kinaxis Inc.
Eliminating volatility in your supply chain is impossible, but managing it is not. Trusted by top brands, Kinaxis® gives people the confidence to know they are making the best supply chain planning decisions to maximize business performance. We solve complex business problems in easy-to-understand ways by combining human and machine intelligence to plan for any future, monitor risks and opportunities and respond at the pace of change. With the support of our community of supply chain experts and using our unique concurrent planning technique and single integrated planning platform, customers can realize higher revenue, lower costs and fewer risks. For more Kinaxis news, follow us on LinkedIn, Twitter or Facebook.
Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements as to Kinaxis' growth opportunities and the potential benefits of, and demand for, Kinaxis' products and services. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of Kinaxis' products and services compared to competitive offerings in the industry. Readers are cautioned not to place undue reliance on such statements. Kinaxis' actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of Kinaxis to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by Kinaxis with Canadian securities regulatory authorities. Kinaxis assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
SOURCE Kinaxis Inc.