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[Research Report] What are Top Performing Supply Chains Doing Differently with Connected Technology to Outperform Their Peers?

Thought Leadership 03/21/2024

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In today's dynamic market, where disruptions are the new normal, a robust supply chain strategy is no longer a luxury--it's the lifeblood of business success. And today, we’re seeing a trend of industry leaders actually translating challenges into a competitive edge.

Top Drivers of Changing Technology and Business Strategies

A recent Aberdeen Strategy & Research report created in partnership with ArchLynk, Mastering the Chain: How Top Performers Forge Their Winning Supply Chain Strategies, highlights significant factors affecting all supply chains like disruptions, data complexity, and demand volatility that are threatening smooth operations and efficient delivery—not to mention the ability to extract insights for informed decision-making. No huge surprises there. So, what are high-performing organizations doing about it? Is it really so different or impactful than what others are executing?

Source: 'Mastering the Chain: How Top Performers Forge Their Winning Supply Chain Strategies,' Aberdeen Strategy & Research 2024
Source: 'Mastering the Chain: How Top Performers Forge Their Winning Supply Chain Strategies,' Aberdeen Strategy & Research 2024

As seen in the above chart, almost 40% of Logistics companies report that increased competition is driving their technology and business strategy. Logistics is also being disproportionately affected by changing business models which are also driving its tech adoption.

The Manufacturing industry is really feeling the pressure to level up their technology and strategies--42% of manufacturing firms are adopting tech to keep up with growth expectations, and 35% are adopting to keep up with increasing competition.

What Top Performing Companies Are Doing Differently?

Top-performing companies in the supply chain game are rewriting the rulebook by strategically leveraging technology. Their approach to technology goes beyond simple purchase decisions--it's a commitment to deep adoption and high utilization. 

These leaders recognize the power of optimal technology usage for a competitive advantage. These tools are weapons in the fight against risk and the architects of agile supply networks. By embracing these technologies and maximizing their potential, leading companies can navigate disruptions and build a foundation for a responsive and agile supply chain that thrives in a dynamic marketplace.

Top Performers consistently outperformed laggards by about 20 percentage points across 4 key areas:

  • Complete and On-time Delivery
  • Inventory Accuracy
  • Performance to Plan (Schedule Attainment)
  • Forecast Accuracy of SKUs

So, while both high-performing and lower-performing companies prioritize common factors like functionality, cost, and ease of use during their technology selection, top performers go beyond that. They use a comprehensive approach emphasizing enterprise data management (EDM), system integration, collaboration across teams, and extensive customization of their chosen technologies to achieve the outcomes listed above. (The full report lists the specific capabilities where top performers are putting the most distance between themselves and lower-performing organizations)

Integration as the Foundation for Agility: From Siloed to Strategic

Supply chain disruptions aren’t as uncommon as one would like. As they happen anywhere along the way, companies need systems that communicate with each other, in a low-touch manner, versus being hindered by more static manual processes. What an agile supply chain can do is be more accommodating and malleable—able to incorporate updates and revise plans based on current circumstances across the entire tech stack.

Conversely, if systems are not interconnected, when one link in the chain breaks, the entire plan often needs to be reworked. But when other links in the chain like supply chain planning, global trade management, and transportation management are all integrated they can allow companies to change the inputs to enable a seamless reaction to overcome the disruption.

For example, suppose a supplier is not going to be able to deliver an incoming shipment of materials. In that case, your anticipated transportation demand will be off and upcoming customer orders will need to be fulfilled from new locations. With an interconnected system, companies can change production plans in other facilities to accommodate this without disrupting other customer orders and even update their transportation plan, all in a low-touch automated process.

What is an Agile Supply Chain?

An agile supply chain is when all technologies like TM, GTS, and IBP work together to become greater than the sum of their parts. When they go beyond being an assemblage of solutions or modules doing their jobs to becoming a well-crafted engine, seamlessly all working together.

However, that engine needs to be carefully thought out and designed by a specialist in both supply chain processes and SAP solutions. ArchLynk is an SAP gold partner specializing exclusively in supply chain and global trade solutions. We offer a holistic approach that unlocks the true potential of your existing technology investments, and any new additions worth considering. 

Imagine a world where Supply Chain and Global Trade efforts work in perfect harmony. That's the power of the ArchLynk Agile Supply Chain methodology that combines a comprehensive suite of SAP technologies seamlessly integrating into your current IT infrastructure to create a unified ecosystem. The result? Real-time insights, proactive risk mitigation, and a collaborative environment that fuels agility and optimizes operations.

  1. Supply Chain Expertise: Our exclusive focus on SAP supply chain technologies and end-to-end solutions allows us to comprehensively advise you on SAP Supply Chain Planning, Digital Logistics, Transportation Management, Business Network for Logistics, Global Trade, and Integrated Business Planning- to deliver knowledgeable recommendations tailored to your business needs.
  2. Industry-Specific Approach:  Our extensive experience in implementations across industries including automotive, chemical and energy, consumer goods, mining and materials, logistics, life sciences, retail, manufacturing, food and beverage, pharma, and more provides us an in-depth understanding of end-to-end processes to accurately tailor solutions based on your industry specifications.
  3. Streamlined Project Completions: We have a track record of some of the fastest implementations—for faster time to value--achieved by using our proprietary templates and accelerators that have been refined over 400+ implementations.
  4. Future-Proofing Technology: ArchLynk can highlight the upsides of top technologies like those we’ve built incorporating Artificial Intelligence (AI) and Machine Learning (ML) which are already helping our customers scale their businesses beyond set expectations.

    Learn what technology capabilities your peers are most focused on using or implementing to increase their competitive advantage and ability to grow in the full report. 

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