Majority of Supply Chain Leaders Plan to Embrace New Technology to Overcome Persistent Challenges, TrueCommerce Survey Reveals
25 June 2024 - 1:00PM
Majority of Supply Chain Leaders Plan to Embrace New Technology to
Overcome Persistent Challenges, TrueCommerce Survey Reveals
TrueCommerce, Inc., a global provider of supply
chain and trading partner connectivity, integration and omnichannel
solutions recently commissioned a survey of global supply chain
leaders for its “Supply Chain Trends Report 2024—Inflation, Talent,
and Tech: The Current State of Business and Supply Chain.” The
research study uncovered that the same supply chain challenges
remain year-to-year and that most supply chain leaders plan to
adopt advanced technologies such as supply chain management (SCM)
systems, electronic data interchange (EDI) tools, and cloud-based
ERP solutions to overcome those obstacles.
E-Invoicing: A Challenge and PriorityOne key
supply chain challenge that survey respondents highlighted was
increasing and ever-changing government mandates. Such requirements
add yet another layer of complexity as leaders must contend with
product/quality regulations, tariffs and import/export
restrictions, environmental regulations, and regulatory
compliance.
Electronic invoicing (e-invoicing) mandates from tax authorities
around the world are creating changes in compliance requirements
and how transactions are managed. In Germany, the implementation of
e-invoicing is set to become mandatory in 2025 due to a legislative
move approved by the Federal Council on March 23, 2024.
Therefore—to ensure compliance—it’s critical for businesses with
global supply chains to stay up to date on the constantly evolving
e-invoicing and tax compliance mandates in Europe and other parts
of the world.
Anders Knudsen, TrueCommerce VP, Marketing and Product in Europe
advises: “Maintaining awareness of tax compliance mandates is
crucial for companies to avoid costly penalties and maintain their
reputation. Compliance is not just about adhering to regulations;
it's about ensuring the smooth operation of your business and
fostering trust with your customers and suppliers. In today's
complex global market, being proactive with tax compliance can
provide a significant competitive advantage and safeguard your
company against potential disruptions."
Persistent Challenges Year-To-YearIn 2023,
business leaders pinpointed three major challenges that impact the
supply chain including cost control (37%), acquiring new customers
(34%) and attracting and retaining talent (33%). In 2024, these
same three challenges remain with cost control (35%) and retaining
talent (35%) listed as the most important followed by acquiring new
customers (30%). While respondents understand the big-picture
challenges, the data also reveals they may not be connecting the
dots on all the factors that impact them.
The survey also identified other significant challenges
impacting supply chain performance, including:
- Supply Chain
Disruptions – Leaders are most concerned about three
factors related to supply chain disruptions: price changes (45%),
labour shortages (34%) and cyberthreats (31%).
- Order Management –
The survey found 95% of companies face order-management challenges,
a key to streamlining operations, boosting sales, and ensuring
customer satisfaction. Some of the top challenges include inventory
discrepancies (47%), returns/reverse logistics (46%) and volume
fluctuations (39%).
- Security, Currency and
QA – On top of the business and supply chain challenges
already mentioned, 49% of company leaders managing supply chains
are worried about cyber threats, 43% are concerned about currency
fluctuations and exchange rates, and 35% experience quality control
issues and language differences.
- Global Challenges –
Government mandates add another layer of complexity to global
supply chains. Leaders are dealing with mandates surrounding
product/quality regulations (52%), tariffs and import/export
restrictions (51%) and environmental regulations (42%).
The report further indicates that while there may be
similarities in terms of business and supply chain challenges among
the leaders surveyed, there remains a range of approaches when it
comes to managing and improving these issues.
Other Supply Chain Priorities for 2024The
survey also revealed that over the past few years, nearly all
business leaders have taken steps to improve inventory management
and plan for supply chain disruption. At the top of the list of
strategies was adopting new tech (73%), while over half (64%) plan
to diversify suppliers and/or increase safety stock (57%). The
research also uncovered that nearly 60% are investing in supply
chain management (SCM) and electronic data interchange (EDI) tools
to mitigate supply chain delays.
In 2024, 71% of business leaders anticipate spending more on
supply chain software than they did in 2023, with a specific focus
on investing in new ERPs, with 70% planning to invest this year.
Those surveyed shared the reasons behind these investments,
including improved reporting and analytics, uptime improvements and
better integration capabilities.
In 2023, business leader priorities were to achieve sales
increases (39%), improve order-processing accuracy (33%) and
improve resiliency (28%). In 2024, the biggest priority remains to
increase sales (34%). However, when comparing these goals and
challenges listed earlier, the two don’t align. For example,
practises like improving workflow visibility, reducing time to
market, boosting productivity, and automating processes, are steps
that could improve cost control, but they are low on business
leaders’ list of goals.
For access to the full report and additional findings, as well
as actionable insights for supply chain leaders, visit
https://www.truecommerce.com/uk-en/supply-chain-trends-report-2024.
Connect with TrueCommerce
About TrueCommerceAt TrueCommerce, we empower
businesses to improve their supply chain performance and drive
better business outcomes. Through a single connection to our
high-performance global supply chain network, businesses receive
more than just EDI, they get access to a fully integrated network
that connects their customers, suppliers, logistics partners and
internal systems. Our cloud-based, fully managed services help
businesses achieve end-to-end supply chain management, streamlined
delivery, and simplified operations. With 25+ years of expertise
and trusted partnership, TrueCommerce helps businesses reach their
true supply chain potential today while preparing them for the
future with our integration-agnostic network. That’s why thousands
of companies—from SMBs to the global Fortune 100, across various
industries—rely on us. To learn more,
visit www.truecommerce.com.
TrueCommerce is a trademark of True Commerce, Inc. All other
trademarks are property of their respective owners.