IBM Study: Supply Chain Leaders Are Investing in AI and Automation to Navigate Supply Chain Uncertainties and Improve Sustainability

September 20, 2022

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Almost half (47%) of surveyed CSCOs mentioned they’ve launched new automation applied sciences in the final two years.
Surveyed CSCOs ranked sustainability as their third greatest problem in the subsequent few years, trailing solely provide chain disruptions and expertise infrastructure.
“The Innovators” are modernizing their expertise infrastructure – 56% of these respondents are at the moment working on hybrid cloud, and 60% are investing in digital infrastructure to scale and ship worth.

ARMONK, N.Y., Sept. 20, 2022 /PRNewswire/ — A brand new IBM (NYSE: IBM) Institute for Business Value (IBV) research “Own Your Transformation” unveils how Chief Supply Chain Officers (CSCOs) are navigating vital provide chain challenges introduced on by a world COVID-19 pandemic, inflation, local weather change and geopolitical occasions, and how they plan to future-proof their provide chains.

The survey* of 1,500 CSCOs and Chief Operating Officers (COOs) reveals that they’re growing investments in automation, AI and clever workflows, ecosystems and sustainability, and are reimagining their provide chain operations.

“To effectively combat the unprecedented supply chain stressors like inflation, it’s imperative that CSCOs focus on using analytics, AI and automation initiatives to build intelligent, resilient, and sustainable supply chains,” mentioned Jonathan Wright, IBM Consulting Global Managing Partner, Sustainability Services and Global Business Transformation. “Automation and AI can enable CSCOs and their organizations to collect data, identify risk, validate documentation, and provide audit trails, even in high inflationary periods, while also managing their carbon, waste, energy and water consumption.”

Key research findings present that:

CSCOs are embracing AI and automation applied sciences to present interconnectivity with companions and suppliers and to allow sustainable operations and predictability.

Almost half (47%) of surveyed CSCOs mentioned they’ve launched new automation applied sciences in the final two years—an strategy that may add predictability, flexibility, and intelligence to provide chain operations, and they’re utilizing AI to assist monitor and monitor efficiency.

Sustainability is each a problem and a power for change.

Surveyed CSCOs rank sustainability as their third greatest problem in the subsequent few years, trailing solely provide chain disruptions and expertise infrastructure.
52% place sustainability at or close to the highest of their precedence record.
50% report that their sustainability investments will speed up business development.
They inform us that they expertise essentially the most direct strain for sustainability transparency from: traders (56%), board members (50%) and prospects (50%).

“The Innovators“: 20% of respondents stand aside for accelerating their data-led innovation to put together for a precarious future, and this group is already outperforming friends on key metrics together with reporting 11% greater annual income development. They are:

Integrating automated workflows throughout organizational features and with their companions for real-time visibility, insights, and motion (95% greater than different CSCOs).
Modernizing their expertise infrastructure – 56% are at the moment working on hybrid cloud, and 60% are investing in digital infrastructure to scale and ship worth.
Extending their sustainability initiatives, creating new merchandise and providers. 58% see alternatives to enhance buyer engagement by way of sustainability imperatives.
Focusing deeper on cybersecurity (practically 20% greater than different CSCOs).

The full research is out there at:

https://www.ibm.com/thought-leadership/institute-business-value/c-suite-study/csco

*Methodology

In cooperation with Oxford Economics, the IBM Institute for Business Value surveyed 1,500 CSCOs and COOs from 35+ international locations and 24 industries as a part of the twenty sixth version of the IBM C-suite Study collection. To simplify, we refer to the complete inhabitants as CSCOs.

About the IBM Institute for Business Value

For 20 years, the IBM Institute for Business Value has served because the thought management suppose tank for IBM. What conjures up us is producing research-backed, technology-informed strategic insights that assist leaders make smarter business choices. From our distinctive place on the intersection of business, expertise, and society, we survey, interview, and interact with hundreds of executives, customers, and consultants annually, synthesizing their views into credible, inspiring, and actionable insights. To keep related and knowledgeable, join to obtain IBV’s electronic mail e-newsletter at ibm.com/ibv. You also can comply with @IBMIBV on Twitter or discover us on LinkedIn at https://www.linkedin.com/showcase/ibm-institute-for-business-value/

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