Investments in Supply Chain Technology Paying Off

Companies that invest in supply chain technology are reaping the rewards, including accelerated profitability, revenue growth, competitive differentiation, and overall efficiency, according to Cleo’s 2024 Ecosystem Integration Global Market Report. Among the findings:

• 97% of companies surveyed invested in supply chain technologies in 2023.
• 81% stated their supply chain investment delivered business improvement in less than 24 months, with 35% getting benefits in the same year.
• Roughly 80% indicated they increased revenue in the same year they made supply chain technology investments.
• More than half (51%) will invest $1 million or more in supply chain technology in 2024.

The growing reliance on technology within supply chains is evident across various sectors, from manufacturing to retail. Automation, AI, and data analytics are among the key drivers reshaping traditional supply chains, allowing companies to improve processes, enhance visibility, and respond swiftly to changing demands in the market.

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“A company's supply chain is a network of commitments crucial for its operations,” said Cleo CMO Tushar Patel. “To uphold these commitments, consistent investment in supply chain technology is imperative; otherwise, relationships suffer, impacting the bottom line.”

The study reveals that 52% of companies reported lower profits in 2023 due to failed business objectives. The reasons cited include external conflicts such as inflation, unforeseen global events, and labor shortages, alongside internal issues like supplier discrepancies, fulfillment delays, and trading partners failing to honor commitments.

“Consumer expectations evolve, as do companies' business objectives and ecosystem commitments, often spurred by supply chain disruptions,” Patel said. “By leveraging technology to enhance resilience to such disruptions, companies gain control over their commitments, fostering stronger relationships and trust within their ecosystem.”

The data underscores Patel’s argument. The top three business objectives for 2024 include enhancing the customer experience (50%), fostering stronger trading partner relationships (35%), and building resilience to supply chain disruptions (30%).

What is Ecosystem Integration?

Ecosystem Integration is a type of supply chain software that uses a single cloud-based platform for file-based, EDI, and application integration to optimize end-to-end integration processes across a network of trading partners, applications, suppliers, customers, and marketplaces.

The software combines the strengths of B2B integration and iPaaS technologies with a layer of visibility, empowering organizations to improve business processes and fix errors when they occur. This allows companies to drive cost savings through B2B process automation, giving them the agility and control needed to navigate supply chain disruption and add value to their businesses.