SYSPRO, a global provider of ERP software, released the findings of their 2021 global research study that explores the challenges and solutions to ongoing supply chain disruptions that manufacturers and distributors face today. This online survey assessed the current sentiment of 163 manufacturing and distribution industry professionals in EMEA, North America and APAC.
The report reveals four key themes and highlights the need for a long-term digital strategy for manufacturers and distributors that incorporates improved customer centricity, external collaboration and data driven decision-making to engineer a bounce-back from the disruptions caused by the pandemic.
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Theme one: There is a disconnect between investment in internal efficiencies and external collaboration
With global lockdowns and ongoing disruptions driving increased pressure, it comes as no surprise that 70% of businesses experienced supply chain disruptions over the last few years. Concurrently, 60% of businesses were unable to engage and collaborate with customers and suppliers in real-time. As a result, those businesses were often unable to deliver to their customers.
The supply of inventory was not protected even though 65% of manufacturers and distributors invested in systems aimed at meeting order requirements and 64% of businesses invested in systems to manage inventory control.
“While the investment in internal efficiencies is crucial for any business, customer and supplier engagement should also be a priority. What we are seeing now, is a domino effect of supply chain disruptions. It won’t matter how businesses try to up their game internally, if they are unable to communicate effectively with their external ecosystem and respond to shifts in the supply chain, businesses may fall behind,” said Paulo De Matos, Chief Product Officer at SYSPRO.
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Theme two: Digital roadmaps do not align to execution
The survey found that while building a digital roadmap, 69% of businesses considered a digitalization strategy aimed at enhancing existing business processes with digital technologies. However, only 29% of businesses committed to a full-fledged digital transformation strategy.
48% of businesses committed to improving customer service, yet only 23% of businesses included external collaboration (i.e. the ability to collaborate with customers) as part of their digital strategy.
When exploring the execution of the digital strategy, the survey found a clear disconnect. With 34% of businesses focused on investments to improve internal operations management, quality management and warranty management, and 33% of businesses looking at improving sourcing, procurement and inventory management, only 18% of businesses invested in business systems to improve external collaboration. Additionally, 50% of businesses chose to not invest in any systems at all, and to rely on current systems to keep the lights on.