New research from JDA Software, Inc.is showing that manufacturers are shifting priorities to better meet consumer demands and to counter the “Amazon effect”. The research titled “2018 Intelligent Manufacturing Survey” reveals that manufacturers and the supply chain are embracing retail-like roles due to pressures being felt by retailers that are now moving upstream.
“The Amazon and Alibaba effect have significantly compressed consumer order fulfillment delivery time expectations. Now, more than ever, planning and execution processes must be more tightly coupled,” said Fred Baumann, group vice president, industry strategy, JDA.
The report details a range of industry wide activities that are emerging to meet these new challenges. They include manufacturers pursuing greater digital collaboration with traditional retail channels to improve efficiency and profitably, with 55% of manufacturers committing to retaining top talent, as well as cross-training employees across all supply chain needs. The intent is to create “a true center of excellence”.
Digital data is also having a significant impact as 78 percent of manufacturer respondents plan to invest in new talent over the next 12 months to better utilize insights gained from sources such as the Internet of Things and social media, news, events and weather. To attract top talent, they are also embracing mobility in the workplace (55 percent), establishing supply chain as an elite organization within their company (42 percent), and adopting cloud solutions specifically for increased business focus (36 percent).
“Supply chain digitalization is no longer a ‘nice to have.’ It’s a strategic mandate and a dramatic differentiator that drives revenue and market share growth,” said Fred Baumann. “We see 35 percent of survey respondents aspiring to reach digital maturity in the next two to three years, but to achieve that goal and to be equipped to successfully go up against Amazon, these manufacturers will need to make digitalization a priority now.”
