Supply Chain Crisis: How Analytics Companies Offer Solutions

The global supply chain crisis is becoming increasingly dire, with an estimated $163 billion worth of inventory discarded each year due to expiry or overproduction. This waste is estimated to cost businesses 3.6% of their annual profits. The average level of waste across the five sectors analyzed in the global study – automotive, beauty and personal care, apparel, food and pharmaceutical – is 8%.
The data reveals that while businesses are aware of the problem, they are not investing the budget required to fix it. On average, only 4.4% of technology budgets are dedicated to supply chain sustainability improvement. Over nine in ten businesses surveyed stated they are under pressure to become more sustainable, but respondents cited challenges to achieving supply chain resilience including ‘integrating disparate systems’ and ‘insufficient coordination among internal stakeholders’.
In order to address these issues, businesses are turning to analytics companies for solutions. A substantial 61% of organizations have already deployed solutions to track unique items, and this number is expected to rise to over 95% as a further 34.6% ‘plan to’. Blockchain investment is also expected to see a significant leap, with 97% of companies surveyed planning to invest in this area within five years. Additionally, within five years some 99% of companies plan to use smart devices (including sensors and drones), and 97% will use industrial IoT.
Analytics companies are also helping businesses to become more transparent, which can have benefits for consumers too. Over two in three consumers (67%) say they would be more likely to buy from a brand if they could see the full journey of the product. Quality and durability are also amongst the top three concerns for cautious consumers, significantly outranking sustainability.
The data shows that analytics companies are offering solutions to help businesses become more sustainable and transparent. By investing in technology and analytics, businesses can reduce waste, improve supply chain visibility and traceability, and provide consumers with the information they need to make better decisions.