This study by the Global Supply Chain Institute at University of Tennessee shows that more businesses today are investing in technology to reduce costs and increase productivity.
Of those surveyed, 94% saw significant improvement in their electronic connectivity capabilities and 68% reported that their clients said they were easier to do business with. However, it seems that the average business only spends around 5% of its IT budget on improving processes with suppliers and customers.
96% surveyed said they are linked electronically with at least one of their suppliers and 69% reported that they intend to make digital connections with their customers.
One office supplies retailer who used technology to manage supply chain found his lead time reduced by 60%, forecasting improved by 30% and inventory turnover increased 9%.
The study also suggests that the gains from streamlining processes far outweighs the means to achieve it, meaning return on investment is fast. Potential gaps in knowledge and technology are appearing throughout organisations as IT departments are under increasing pressure to meet fundamental business goals.
“Successfully collaborating with your business partners requires many things. But as we show in this white paper, technology plays a major role, a role that will only grow larger in the future,” said Dr. Paul Dittmann, executive director of the Global Supply Chain Institute at the UT’s Haslam College of Business.
