Survey: Supply chain technology is a competitive advantage

As margin pressures increase, more retailers are adopting new supply chain technologies to streamline operations and remain competitive.



Specifically, nearly three-quarters (74%) of top retail executives in procurement said that supply chain technology can provide a significant competitive edge, according to the inaugural Retail Pulse survey from C2FO.



The study, which was conducted at the recent Retail Industry Leaders Association's (RILA) Retail Supply Chain Conference, tapped 200 supply chain executives representing domestic transportation, distribution, e-commerce, omnichannel and sourcing.



Supply chain technology — such as supplier collaboration enhancement and trade finance solutions — can provide efficiency to existing operations, streamline inventory and increase revenue at a time when an overwhelming majority (88%) of retailers said they are focused on improving margins in the year ahead. A majority (62%) feel their organizations are agile when it comes to embracing these solutions.



While the survey showed an overall positive sentiment among procurement executives regarding agility at their organization, 37% stated that their organizations are still 'not very agile' or 'not at all agile' at adopting new supply chain technologies. Several barriers to adopting supply chain technology include budget limitations (53%), resource constraints (46%) and stakeholder buy-in (35%), according to the study.



When it comes to managing supplier costs, more than half (53%) of retail executives said that price negotiation was their top challenge, followed by margin improvement (48%) and price transparency (37%). As such, it is no surprise that 43% of those surveyed are planning to invest in supplier collaboration enhancement to remain competitive in the year ahead.



Additional investment will be allocated to logistics technology (71%), analytics services (64%) and risk mitigation (20%).



"Through our work with Global 2000 retailers, I've seen that the most effective supply chain strategies are those that incorporate innovative technology to increase working capital transparency and de-risk the supplier base," added Sean Van Gundy, C2FO managing director, Working Capital Advisory.



"The results of the survey show continued pressures to improve margins,” Van Gundy added. “It is now more important than ever for retailers to consider cost-effective solutions that improve supply chain health, gross margins, and drive bottom-line growth."