Average supply chain IT budget will be allocated to growth and performance
According to Gartner, Chief Supply Chain Officers (CSCOs) are increasingly recognizing the opportunity to invest in new technology to drive growth in supply chain management. A survey of supply chain leaders revealed that 65 per cent of respondents believe it will be easier to fund new technology investments, with 73 per cent of supply chain IT budgets allocated to growth and performance enhancements.
Gartner has identified the top eight supply chain technology trends that will likely receive significant investment:
- Actionable AI: Actionable AI enables data-driven decision-making by mimicking human problem-solving and adapting to real-world circumstances based on past decisions and experiences.
- Smart Operations: Smart operations extend the concept of smart manufacturing to encompass all core operational capabilities, including manufacturing, service, and logistics. It involves orchestrating distributed processes and systems to transform businesses.
- Mobile Asset Optimization: Mobile asset optimization maximizes the use of an enterprise’s mobile assets through the combination of business process software, sensory technologies, and operational research techniques. This trend includes intralogistics smart robots in warehouses and transportation visibility platforms for improved collaboration.
- Industry Cloud Platforms: Industry cloud platforms combine SaaS, PaaS, and IaaS with specific functionality for vertical industry use cases. They serve as agile composable platforms with industry-specific packaged business capabilities, expanding technology innovation into business innovation.
- Employee Engagement: Employee engagement tools and applications aim to improve frontline worker performance, satisfaction, and retention. This trend encompasses mixed reality, mobile devices, wearables, collaboration tools, and more, anchored in a broader workforce strategy.
- Composable Application Architecture: Composable business applications follow the principles of modularity, autonomy, orchestration, and discovery to address specific business use cases. These encapsulated software components represent well-defined business capabilities.
- Cyber Resilient Supply Chains: As supply chains adopt advanced technologies, they become more interconnected, leading to increased cybersecurity vulnerabilities. Cyber resilience involves implementing tools, processes, and governance methods to mitigate cybersecurity risks.
- Supply Chain Integration Services: Supply chain integration services include technology platforms, integration teams, strategic decision-making on application connections, and cloud services to manage integrations. Integration is elevated to a strategic vision of a more interconnected world.
These trends reflect the evolving landscape of supply chain management, driven by the need for growth, resilience, and scalability. Organizations that stay informed about these technology trends and make strategic investments can enhance their supply chain capabilities and drive competitive advantage.