We are in the midst of a real-time, seismic shift as consumers transform expectations of global supply and demand models. The pandemic exposed the fragility of many supply chain networks. An inability to sense and dynamically adjust to shifting demand signals, consumer preferences, labour requirements, transportation, storage, inventory and trade policy changes caused havoc to economies and brands around the world.
According to McKinsey, “Investments in technology and automation in distribution centres are now at the forefront of most Chief Supply Chain Officers’ agendas.” Gartner recently upped its supply chain management technology forecast from 8% to 14% in compounded annual growth rate – forecasting a $28 billion investment by 2025.
Retailers are racing to transform store, digital, fulfilment and service experiences in an effort to win over omnichannel consumers, boost employee productivity and increase profitability, all the while trying to balance increasing environmental requirements.
Digital transformation initiatives have kicked into high gear across supply chains, too, allowing brands to reap the benefits of cloud, composable IT architecture, microservices and AI in efforts to better match supply with demand.
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