Digital transformation, sustainability initiatives, and customer experience (CX) improvements are among the top priorities driving the development of new corporate supply chain strategies, according to a new study conducted by Forrester Consulting.
The Forrester Consulting research study, “Increase Brand Loyalty and Generate ROI with Improved Traceability,” was commissioned by Rockwell Automation to understand the degree to which environmental, social, and governance (ESG) commitments, external regulatory demands, and brand reputation drive private-sector interest in supply chain traceability solutions.
While compliance remains a key driver of new investments in supply chain management, demands related to sustainability and customer experience have propelled these strategic shifts. In fact, 57% of supply chain decision-makers have already implemented or are expanding initiatives that will reduce waste within their supply chain.
Key findings of the survey include:
- Sustainability and visibility lead the charge for better customer experience. While some companies are knee-deep in their digital transformation efforts, those types of efforts are evolving for the current landscape. Companies are turning to traceability to enable new sustainability and visibility-related CX initiatives. Sixty-two percent of respondents said they are using traceability data to improve the customer experience and products.
- Traceability initiatives remedy counterfeiting and diversion. Nearly half (47%) of respondents say their companies lose 11% to 60% of sales income each year due to counterfeiting, and 89% say grey market diversion is problematic for them. But the lack of clear ROI prevents 45% of respondents from implementing traceability and serialization, which can mitigate these challenges.
- An enterprise’s success hinges on full supply chain visibility, swift product recalls, and better brand loyalty. Seventy-nine percent of respondents said full visibility into where products are in the supply chain are critical or important to their company’s success, while 78% said the same for the ability to quickly recall the right products. In addition, 77% cited brand loyalty improvement through better product management.
“This study confirms that enterprises are experiencing how traceability can nurture brand loyalty and optimize their supply chains, as well as mitigate the impact of counterfeits in key markets, among other priorities,” said Matt Fordenwalt, general manager, systems & solutions, Rockwell Automation, in a statement.
