How far along are you on adopting digital technology into your supply chain? Survey results show the C-suite has a very different answer to that question than operational leaders.
Digital continues to be a strategic imperative for most supply chain organizations, according to Gartner’s “Supply Chain Technology User Wants and Needs Survey.” But how far along they are in implementing that strategy seems to be a matter of debate.
For 13 years Gartner has surveyed supply chain business users about their information technology (IT) goals, priorities, maturity, and investment strategies. In the 2019 survey, “digital” was identified as a core strategy and focal point as supply chain organizations looked to advance their supply chain maturity and business performance. (We recognize that the term “digital” has different connotations, depending on the focus of the discussion. In the context of the survey, digitization is defined as applying digital technologies to improve supply chain performance.)
A difference of opinion
The survey represented a variety of viewpoints. A bit over 45% of respondents were senior supply chain leadership with the rest being members of operational management, including vice presidents, directors, and managers.
When we compared the responses of senior-level leadership to those of the front-line, mid-level management respondents, we observed an interesting dichotomy. Throughout the study, senior leadership had an overly optimistic view of their organization’s capabilities and commitments to supply chain IT. This inflated exuberance at the top likely causes companies to overstate their real abilities, which could have negative ramifications for their performance.
For example, respondents were asked to select which statement most closely describes their organization’s current state as it pursues digital supply chain initiatives. They had to choose between: “We struggle to fully understand and define how digital supply chain will affect our business and what investments we will need to make to be successful” and “We have a clear vision, plan, and road map driving our digital initiatives.” Almost unbelievably, 97% of C-suite respondents said they had a clear vision, plan, and road map. Even more surprising is how strong this sentiment was with 66% saying they had moderately to very strong digital competencies; a statement which is not supported by the hundreds of calls Gartner takes each year during which customers seek our guidance on developing digital strategies and road maps. This suggests that respondents are overestimating and overstating their abilities.
In contrast, 81% of respondents who were in operational management felt they had strong digital strategies. So while operational management was still optimistic, there was a 17-percentage point drop from the C-suite. Additionally, those respondents who felt they had moderately high to high levels of competency dropped from 66% for C-suite respondents to 41% for operational management respondents. Again, this highlights a notable disconnect between the beliefs of top supply chain leadership and those of operational management. This misalignment can cause many issues for organizations from frustrations due to differing views of reality, unrealistic expectations, and misallocation of resources.
Emerging tech: A status check
A notable way to advance a company’s supply chain digital maturity is to exploit emerging technologies that offer compelling value propositions. Promising supply chain management technologies can help transform a company’s operations. To explore this, the study asked respondents to rate the importance of and their investment plans for 10 emerging technologies, including artificial intelligence/machine learning (AI/ML), the Internet of Things (IoT), robotic process automation (RPA), and augmented reality/virtual reality (AR/VR).
The data again found a significant disconnect between what senior leadership believes to be true and what operational, front-line management perceives to be true. Figures 1 and 2 explore how respondents rated the importance of key emerging supply chain technologies and where they are currently investing or planning to invest. The reason we asked these two questions in this way is because we wanted to know if companies were “putting their money where their mouth is.” This would be like asking people if they believe it is important to save for retirement, and then asking them how much they are actually saving. If the data finds that companies consider something to be important, but they are not investing in it, then this indicates they might not see it as important as they say.
Figure 1 shows the responses for C-level supply chain executives, and it shows an overly dense clustering across all the emerging technologies. This clustering indicates that in executives’ minds, these technologies are all equally important and that they are investing significantly in all of these without prioritizing one or the other. This belief is unrealistic and unsupported by anecdotal evidence from Gartner client interactions, which find that companies are selectively investing in a smaller number of these technologies that offer the greatest near-term business value.
[Figure 1] C-suite respondents: Importance vs. Adoption of Emerging Technologies Enlarge this image
Figure 2 shows the responses for all respondents excluding C-level executives. It shows a much more realistic distribution of responses, with some more mature emerging technologies like big data, RFID, and IoT showing the most investment and the greatest importance and the remaining technologies scattered more evenly. This a more realistic view is supported by anecdotal evidence from Gartner client interactions.
[Figure 2] All respondents (except C-suite): Importance vs. Adoption of Emerging Technologies Enlarge this image
We find about 20% of companies identify as early adopters of technologies, and these are the most likely to have pilot programs in multiple emerging technology areas. Around 55% of respondents self-identify as mainstream adopters of technologies. These organizations are much more selective in choosing where to invest, and they typically wait for emerging technologies to mature somewhat before they enter the market for packaged solutions that exploit the emerging technology.
For example, an early adopter might purchase an IoT development platform and build its own predictive maintenance system, while a mainstream adopter would look to buy a predictive maintenance system that leverages IoT. This would align with the position of technologies like big data, RFID, and IoT maturing faster than some other technologies like digital twins or blockchain.
Digital will remain critical to supply chain success. But the study highlights the possible disconnect between senior executives’ digital ambitions and beliefs about their organization and their organization’s actual capability to meet those lofty expectations. No one is served if these two perceptions are not reconciled.
Senior supply chain leadership should admit that they might have overly lofty goals and that the organization cannot “go to college and major in everything” (to quote a CEO I used to work for). Instead, they need to educate themselves on what each of the technologies can do for their supply chain, and then work with their organization, at all levels, to realistically map out their current and desired capabilities.
The venture-backed fleet telematics technology provider Platform Science will acquire a suite of “global transportation telematics business units” from supply chain technology provider Trimble Inc., the firms said Sunday.
Trimble's other core transportation business units — Enterprise, Maps, Vusion and Transporeon — are not included in the proposed transaction and will remain part of Trimble's Transportation & Logistics segment, with a continued focus on priority growth areas following completion of the proposed transaction.
Terms of the deal were not disclosed but as part of this agreement, Colorado-based Trimble will become a shareholder in Platform Science's expanded business. Specifically, Trimble will have a 32.5% stake in the newly expanded global Platform Science business and will receive a Platform Science board seat. The company joins C.R. England, Cummins, Daimler Truck, PACCAR, Prologis, RyderVentures, and Schneider as a key strategic investor in Platform Science along with financial investors 8VC, Activant Capital, BDT & MSD Partners, Softbank, and NewRoad Capital Partners.
According to San Diego-based Platform Science, the proposed transaction aims to enhance driver experience, fleet safety, efficiency, and compliance by combining two cutting-edge in-cab commercial vehicle ecosystems, which will give customers access to more applications and offerings.
From Trimble customers’ point of view, they will continue to enjoy the benefits of their Trimble solutions, with the added flexibility of the Virtual Vehicle platform from Platform Science. That means Virtual Vehicle-enabled fleets will receive access to the Virtual Vehicle Marketplace, offering hundreds of new and expanded applications, software, and solution providers focused on innovating and improving drivers' quality of life and fleet performance.
Meanwhile, Platform Science customers will enjoy the added choice of Trimble's remaining portfolio of transportation solutions which will be available on the Virtual Vehicle platform, the partners said.
"We believe combining our global transportation telematics portfolio with Platform Science's will further advance fleet mobility and provide our customers with a broader portfolio of solutions to solve industry problems," Rob Painter, president and CEO of Trimble, said in a release. "Increased collaboration between the new Platform Science business and Trimble's remaining transportation businesses will enhance our ability to provide positive outcomes for our global customers of commercial mapping, transportation management, freight procurement, and visibility solutions. This deal will result in significant synergies along with tremendous opportunities for employees to continue to grow in a more-competitive business."
The acquisition comes just five months after Platform Science raised $125 million in growth capital from some of the biggest names in freight trucking, saying the money would help accelerate innovation in the commercial transportation sector.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
Economic activity in the logistics industry expanded in August, though growth slowed slightly from July, according to the most recent Logistics Manager’s Index report (LMI), released this week.
The August LMI registered 56.4, down from July’s reading of 56.6 but consistent with readings over the past four months. The August reading represents nine straight months of growth across the logistics industry.
The LMI is a monthly gauge of economic activity across warehousing, transportation, and logistics markets. An LMI above 50 indicates expansion, and a reading below 50 indicates contraction.
Inventory levels saw a marked change in August, increasing more than six points compared to July and breaking a three-month streak of contraction. The LMI researchers said this suggests that after running inventories down, companies are now building them back up in anticipation of fourth-quarter demand. It also represents a return to more typical growth patterns following the accelerated demand for logistics services during the Covid-19 pandemic and the lows of the recent freight recession.
“This suggests a return to traditional patterns of seasonality that we have not seen since pre-COVID,” the researchers wrote in the monthly LMI report, published Tuesday, adding that the buildup is somewhat tempered by increases in warehousing capacity and transportation capacity.
The LMI report is based on a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
That hiring surge marks a significant jump in relation to the company’s nearly 17,000 current employees across North America, adding 21% more workers.
That increase is necessary because U.S. holiday sales in 2023 increased 3.9% year-over-year as consumer spending grew even amidst uncertain economic times and trends like inflation and consumer price sensitivity. Looking at the coming peak, a similar pattern is projected for this year, with shoppers forecasted to drive a 4.8% increase in holiday retail sales for 2024, Geodis said, citing data from Emarketer.
To attract the extra workforce, Geodis says it will offer competitive wages, peak premium pay incentives, peak and referral bonuses, an expedited payment option, and flexible schedules. And it’s using an AI-powered chatbot named Sophie to serve as a virtual recruiting assistant.
“We acknowledge the immense responsibility we have to our customers to deliver exceptional service every day, and this is especially true during peak season,” Anthony Jordan, GEODIS in Americas Executive Vice President and Chief Operating Officer, said in a release. “Because peak season is the most business-critical sales period of the year for many of our retail clients, expanding our workforce is vital to ensure we have a flexible, dynamic team that can handle anticipated surges in demand.”