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From Cost Center to Competitive Advantage: Supply Chain Resilience Through Digital Transformation

IDC Spotlight Report

Cover of the IDC Report: From Cost Center to Competitive Advantage: Supply Chain Resilience Through Digital Transformation

Organizations shifting to increasingly dynamic supply chains require digital transformation for real-time visibility across extended supply chain partners, enabling advanced analytics-driven insights

Introduction

The events of recent years have challenged global supply chains like never before.Disruption has been deep and lasting as a global health pandemic, geopolitical tensions/conflict, logistics congestion, equipment constraints, labor shortages, inflationary pressures, and security concerns have forced organizations to reexamine the vulnerabilities of operating extended global supply chains.

Exposed are the interdependencies that we all knew existed, if not how fragile they would eventually prove to be. As we come to terms with the realization that the next normal is likely to be an increasingly resource constrained environment, organizations have largely accepted significant cost increases, choosing instead to focus on building resilience in their supply chains to ensure continuity of supply.

According to IDC's March 2022 Supply Chain Survey, addressing risk is taking many forms as organizations increase supplier diversity, shift from lean to dynamic networks, explore options for nearshoring and reshoring, and weigh these decisions against sustainability (ESG) initiatives, which are becoming baked into organizational DNA.

Across industries, organizations striving to achieve resilience in this increasingly dynamic environment will be required to harness data to increase visibility, cultivate timely intelligence through advanced analytics, and develop organizational agility to move swiftly as actionable insights are uncovered.

At a Glance

WHAT'S IMPORTANT
Traditional approaches to data management are failing to meet new business requirements that demand a combination of real-time connected data, self-service, and a high degree of automation, speed, and intelligence.

KEY TAKEAWAY
There is an increasing disparity in business revenue performance between digitally enabled and non-digital organizations.

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