ProMatDX Keynote: Using tech to help supply chains respond, recover and thrive

In yesterday’s PromatDX keynote, Thomas Boykin of Deloitte joined MHI CEO John Paxton to present key findings from the “2021 MHI Annual Industry Report.” The session also featured input from panelists Annette Danek-Akey, executive VP of supply chain at Penguin Random House, and Randy V. Bradley, associate professor of information systems and supply chain management at the University of Tennessee.

The group discussed key survey findings like percentage of technology adoption across numerous product categories (for example, Cloud computing, inventory optimization, sensors, etc.), the fact that 49% of companies increased technology adoption due to Covid, and the top supply chain challenges cited by survey respondents.

“When it comes to supply chain challenges, respondents continue to report that their organization’s greatest challenge is hiring and retaining qualified workers (cited by 52% of companies),” said Paxton. “Following close behind is forecasting (48%) and the need to meet customer demands for lower costs (47%).”

In terms of new strategies that organizations are implementing to shield their supply chains from future disruptions, MHI found that 45% are using flexible manufacturing/supply chain related services; 43% are building long-term relationships with a smaller pool of suppliers; and 37% are diversifying their geographic supply bases.

Paxton said the supply chain operators that tackle the barriers to innovation will be best positioned to meet customer expectations and emerge as the market leaders of tomorrow. Those that evolve too slowly and ignore the need to respond to market changes may fall behind.

“Companies that embrace a digital mindset can open the door to greater performance and success by leveraging the latest digital technologies to inspire and drive experimentation, ingenuity, and innovation. But, the time to act is now,” he said.