Omni-Channel and Supply Chain Analytics Top Trends in Deloitte MHI Industry Report

The impact of omni-channel fulfillment and the power of analytics emerged as the most important trends in an industry survey released by MHI and consulting firm Deloitte.

In late 2013, MHI and Deloitte conducted their first MHI Annual Industry Report survey. The topic of this survey was “Innovations that Drive Supply Chains” and the goal was to provide an up-to-date perspective on emerging supply chain trends.

In the survey of 450 supply chain professionals titled “2014 MHI Annual Industry Report: Innovations that Drive Supply Chains,” 61% of respondents called multi-channel, also known as “omni-channel” fulfillment, as either very strategically important or moderately important, though only 46% planned to increase investment on it over the next three years, indicating a potential gap in the industry in being able to take advantage and lead with this trend, said Sopher.

The detailed findings are organized around five hot topics that could have far-reaching implications on how companies manage their supply chains

Overall, added Sopher, there will be significant investments by companies in systems and equipment to deal with omni-channel challenges. “I believe companies are going to need innovative material handling equipment to meet this need,” said Sopher.

The two major barriers preventing innovation in the supply chain are a talent shortage and a continuing focus on cost reduction, the study found.

Key Study Findings Include

• The top two strategic priorities of executives are supply chain analytics and multichannel fulfillment.
• The two major barriers preventing innovation in the supply chain are a talent shortage and a continuing focus on cost reduction.
• Three emerging innovations are not yet top-of-mind for executives, but may be soon: sustainability, mobility/machine-to-machine technology and 3-D printing.

Prest encouraged companies in the industry to invest in talent development and education efforts to cope with technology priorities and interests revealed in the study, which included mobility, 3D printing and sustainability. While cost reduction remains the dominant driver in the industry, abruptly shutting down talent recruitment efforts or employee education to cut costs is a bad move because it effectively “cuts off your talent supply chain,” said Prest.

If cost reductions must be made, added Prest, “the better approach is to scale back, not eliminate, your talent supply chain.”

Prest said the survey with Deloitte will be an annual initiative, with the next one to be released at ProMat in 2015.

Related: 60 Seconds with Scott Sopher, Deloitte Consulting’s Supply Chain Practice