Supply chain leaders see technology as key to growth

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Nearly three quarters of all logistics and supply chain leaders consider technology to be fundamental or very important to their organisation’s growth strategy, especially given the growing challenges in global trade. This is according to research by Descartes Systems Group on emerging challenges for international trade and the global economy.

Factors such as tariffs and trade barriers, supply chain disruptions and geopolitical instability play a role. As many as 74% of logistics and supply chain leaders consider technology to be fundamental or very important to their growth strategy. This percentage even rises to 88% among companies that expect to grow by more than 15% in the next two years. In addition, 59% see technology as essential for achieving competitive advantage in international trade.

Global trade intelligence most important factor for business value

In terms of technology capabilities that help companies grow and provide a competitive advantage, 36% of survey participants cited global trade intelligence as the most important factor for business value in the next two years (see figure below). Global trade analytics and supply chain mapping then score 27% and 26% respectively.

Companies in various sectors also see the great importance of gathering information on global trade, survey results show. According to them, it is the most important technological opportunity in recent times. One that is also expected to deliver the most value in the next two years. This includes manufacturing (40%), wholesale and distribution (44%), finance and insurance (38%) and retail (30%).

Technology to become more flexible and resilient

‘For companies across industries, global trade is more complex than ever, with numerous new challenges to traditional business operations,’ said Jackson Wood, Director of Industry Strategy at Descartes. ‘As companies face tariffs and trade barriers, geopolitical instability, supply chain disruptions and compliance requirements, technology solutions can help them become more flexible and resilient to compete more effectively,’ Wood said.

For the survey, 978 supply chain intelligence leaders were surveyed in key trading countries in Europe, the Americas and Asia-Pacific. The aim was to understand the strategies, tactics and technologies that companies are deploying to gain competitive advantage and achieve sustainable growth. This included looking at differences based on country, sector, company size and growth expectations.

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