A top priority of supply chain industry leaders is reducing material supply risk to avoid unplanned production delays and outages
It has been an incredibly trying year for manufacturers operating complex and global supply chains as a combination of factors has hindered the smooth functioning of their businesses. Eighty percent of supply chain executives polled in a recent survey revealed they cannot digitally track the movement of direct and indirect materials across their enterprise network. This is one of the eye-opening findings from the just-released ‘2022 State of Supply Chain Management’ report from supply chain innovator Verusen, a global leader in materials intelligence.
Verusen’s annual survey explores supply chain professionals’ current perspectives, activities, and challenges related to the impact of the rapid shift in supply chains and consequent business conditions. This year’s findings indicate that many companies lack the resources and direction to meet their supply chain management goals. The result can mean the stalled shipment of goods, delays in manufacturing production, or a total inability to produce goods, constraining profits and business growth. The top priority of supply chain leaders as they look ahead to the coming year is to reduce material supply chain risk to avoid unplanned production delays and outages.
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The ‘2022 State of Supply Chain Management’ survey was conducted with leading global supply chain executives based within companies showing revenues ranging from under $1 billion (70%) to $1 billion and above, past $20 billion (30%).
Summary of Key Findings:
- When asked about hurdles to a digitally transformed approach to materials management, 76% of execs pointed to disparate silos of materials data and lack of knowledge.
- 43% of executives surveyed reported a lack of visibility into inventory availability as the primary hindrance to sharing critical materials with other facilities within their network.
- The #1 priority among respondents over the next 12 months is reducing supply risk for their materials.
- Over 75% of respondents believe implementing an AI-driven Materials Management solution would take 12-24 months.
- 80%+ report they cannot digitally track the movement of direct and indirect materials across their enterprise network.
- Over half of the respondents claim they need to expedite spare parts on a weekly and monthly basis to avoid production outages.
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“Verusen’s 2022 Supply Chain Management survey reveals that poor data quality, outdated technology, and disparate data silos are the top three causes for inefficiency in supply chain executives’ materials management process,” said Paul Noble, Verusen’s Founder and CEO. “Supply chain executives are constantly faced with indecision due to the lack of visibility into their inventory availability. This indecision leads executives to make hasty decisions around direct and indirect materials data. However, this need not be the case, especially with new AI tools that can accurately generate guidance for actionable decisions across an enterprise supply network.”
“Today’s economic environment makes it more difficult than ever to manage supply chain challenges across an enterprise supply network. To accomplish this, executives must look to purpose-built platforms to gain control of their global supply chain and materials data,” added Noble. “By applying the power of AI across the enterprise through the Verusen platform, businesses can centralize data from all points of the supply and materials inventory and link and leverage production and supplies to accelerate profitability.”
Verusen’s AI platform provides inventory visibility and actionable insights across the entire global enterprise in less than 90 days. It allows enterprises to find opportunities through an automated network feature. The platform gives businesses the insights to minimize procurement efforts to reduce working capital and risk while enabling strategic sourcing alignment across facilities.
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