Survey shows real-time product visibility and delivery as top

investment drivers

PHOENIX--(BUSINESS WIRE)--A joint survey of supply chain executives from JDA

LLP (KPMG) reveals that trying to keep up with customer

expectations is driving retailer investment, while agility and

innovation are driving manufacturers’ investment in their supply chains.

The 2018

found that one force remains constant across manufacturers and retailers

alike: More than half identified the need for real-time product

visibility as the leading driver in digital supply chain investment.

“As Amazon extends from retail into manufacturing and logistics, these

industries recognize that the status quo for supply chains is no longer

an option for success,” said Kevin Sterneckert, group vice president,

innovation strategy and solution marketing at JDA. “The 2018 Digital

Supply Chain Executive Survey outlines how retailers and manufacturers

are leveraging innovative technologies and strategic alliances to

improve speed to market and deliver a superior customer experience

profitably.”

The survey found that both retailers (57 percent) and manufacturers (50

percent) include real-time product visibility as a top driver of

investment. Retailers express the need for end-to-end traceability (53

percent) with the ability to manage new fulfillment nodes (50 percent),

where manufacturers are driven by the need to innovate faster (40

percent), with lower cost to serve (33 percent) through improved

planning.

Cognitive/predictive analytics is overwhelmingly viewed as the most

disruptive technology by executives for its ability to impact all parts

of the supply chain, including forecasting, fleet routing and inventory

optimization. Manufacturers view blockchain and autonomous vehicles as

the most disruptive technologies, with half of the companies surveyed

planning to test these in the next 24 months.

“Companies that offer the best customer experiences and service have

raised the bar on expectations, and now many business-to-business

companies are expecting the same service levels as today’s consumers,”

said Brian Higgins, U.S. supply chain practice leader at KPMG. “How

retailers and manufacturers are responding is a prevalent theme in our

survey findings, and it should come as no surprise that companies are

investing in innovative technologies to remain relevant.”

While retailers succeed based on exceeding customer expectations, many

are held back because they lack a clear integrated strategy. The top

inhibitors for retailers include lack of management commitment (70

percent), limited IT budget (60 percent) and no integrated strategy (30

percent). In sharp contrast to retailers, manufacturers have the

financial resources, but are struggling with internal decision-makers,

with 57 percent citing a resistance to change as a top impediment to

investment in the supply chain.

“We are all fighting for customer relevance in this age of immediacy and

rapid change, and a fast, transparent and nimble supply chain sits at

the core of driving relevance,” said Gaurav Pant, chief insights officer

at Incisiv. “Retailers and manufacturers need to focus on reducing

friction from their customer experience, which requires embracing

analytics and an attitude reboot on innovation.”

JDA and KPMG are at the Gartner Supply Chain Executive Conference in

Phoenix this week, May 14-17, in booth #307 (JDA) and booth #111 (KPMG),

where attendees can access the 2018

book, “Retail

Reimagined for Dummies," are also available at booth #307.

Survey Methodology

Incisiv collected responses from 60 supply chain executives in the

retail and manufacturing industries in February 2018 to determine the

findings. Sixty-two percent of respondents are from companies that are

worth more than $1 billion, and 75 percent of respondents decide or

directly influence supply chain purchase decisions.

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About KPMG LLP

KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us),

is the independent U.S. member firm of KPMG International Cooperative

("KPMG International"). KPMG International’s independent member firms

have 197,000 professionals working in 154 countries. Some or all

of the services described herein may not be permissible for KPMG audit

clients and their affiliates or related entities.

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About JDA Software, Inc.

JDA Software is the leading supply chain software provider powering

today’s digital transformations. We help companies optimize delivery to

customers by enabling them to predict and shape demand, fulfill faster

and more intelligently, and improve customer experiences and loyalty.

More than 4,000 global customers use our unmatched end-to-end software

and SaaS solutions to unify and shorten their supply chains, increase

speed of execution, and profitably deliver to their customers. Our

world-class client roster includes 76 of the top 100 retailers, 77 of

the top 100 consumer goods companies, and 8 of the top 10 global 3PLs.

Running JDA, you can plan to deliver. www.jda.com

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“JDA” is a trademark or registered trademark of JDA Software Group, Inc.

Any trade, product or service name referenced in this document using the

name “JDA” is a trademark and/or property of JDA Software Group, Inc.

Contacts

JDA Software, Inc.

Jolene Peixoto, +1 978-475-0524

Senior

Director, Corporate Communications