Due to the increasing complexity of supply chains, companies have adapted their strategies. A recent report, 2024 Supply Chain Trends and Attitudes, released by Appalachian State University and SPARQ360, found that companies are placing greater emphasis on technological innovation and sustainability to maintain competitive advantage.
The report, which gathered insights from 293 supply chain managers across various industries, offers the following highlights:
- Technological Investment Priorities: The study reveals a strong consensus around the importance of investing in supply chain visibility platforms and predictive analytics. These technologies are seen as essential for enhancing transparency, efficiency, and responsiveness in supply chain operations. The report also notes a growing interest in artificial intelligence (AI), which is being recognized for its potential to automate and optimize key processes.
- Sustainability Takes Center Stage: Despite the traditionally weaker regulatory framework in the United States, over 75% of respondents rated compliance with government regulations as "Extremely Important" or "Very Important." The report also shows that sustainability requirements are increasingly being included in procurement processes, with over 92% of managers encountering these initiatives in RFPs. This reflects a broader shift towards viewing sustainability as a driver of competitive advantage and customer satisfaction, and the increasing influence global customers with compliance obligations in Europe and the rest of the world have on their providers.
- Investment Gaps Identified: The report highlights significant gaps between anticipated and recommended spending in several areas, including robotics and automation, renewable energy, and circular economy solutions. These gaps suggest that while companies recognize the importance of these technologies, barriers preventing full investment, such as cost concerns or integration challenges, may exist.
- Collaboration with Vendors: Collaboration with vendors on supply chain optimization and sustainability initiatives is widespread, with nearly 93% of companies engaging in these practices. However, the report identifies differences in collaboration frequency based on company size, suggesting that smaller companies may need more support to strengthen supplier relationships and improve outcomes.
“We can now see a familiarity gap when it comes to technologies that divide the supply chain world,” said Evan Junker, chief growth officer of SPARQ360, in a statement. “We also see clear splits among smaller companies from the rest of the industry. These kinds of divisions will lead to some clear competitive advantages for some and can serve as a warning sign for others.”
