Second annual survey reveals that real-time visibility is driving

digital supply chain investments enabled by AI, ML and cognitive

analytics

PHOENIX--(BUSINESS WIRE)--Gartner Supply Chain Executive Conference The second

annual joint survey of supply chain executives from JDA

LLP (KPMG) details the key innovation investments across retail,

manufacturing and logistics in 2019. The JDA

Incisiv reveals that end-to-end visibility continues to be the number

one priority for the second consecutive year, driven by artificial

intelligence (AI), machine learning (ML) and cognitive analytics.

AI/ML and Cognitive Analytics Viewed as Most impactful Driver Towards

Enabling End-to-End Visibility

The new survey reveals that supply chain traceability and visibility

continues to be the highest investment area for supply chain executives

(77%).To achieve this level of visibility, supply chain executives plan

to deploy or test cognitive analytics (82%), AI/ML (62%) or digital

control tower (55%) technology in the next 24 months. Together, AI/ML

technologies are viewed as the most impactful technology this year (80%)

given its wide applicability and promise of addressing complex business

problems across the value chain. Cognitive/predictive analytics was also

ranked highly, as 75% of respondents believe it will have a disruptive

impact in the year ahead. Overall, since last year, AI has shifted into

the high impact/high planned adoption quadrant for surveyed executives,

confirming the importance of the impact this technology will have on

supply chains in the year ahead.

“A truly autonomous supply chain requires predictive end-to-end

visibility and these survey results echo our vision to make this a

reality for our customers,” said Fred Baumann, group vice president,

Industry Strategies, JDA. “Supply chain executives must invest in the

critical technology elements such as AI/ML that will simultaneously

unlock the value from customer data while shedding light on disruptions

before they occur, recommending prescriptive actions for a smarter, more

agile supply chain.”

Drilling down even further into how impactful AI/ML technologies are,

survey respondents found the highest value use case to be the ability to

optimize inventory (51%) followed by predictive distribution (45%) and

optimizing distribution networks (42%) because companies need the

ability to fulfil from anywhere, profitably. Cross-industry, the highest

value use cases for AI were identified by respondents to be:



  • Increasing inventory and pricing accuracy for Retail


  • Improving demand forecasting for Manufacturing


  • Optimizing distribution network for Logistics

“As the study found, supply chain visibility continues to be the highest

priority for executives, and in just a year, plans to invest in

cognitive and predictive analytics have skyrocketed,” said Brian

Higgins, KPMG U.S. Advisory principal and the firm’s Procurement and

Product Operations leader. “Investments in these technologies, as well

as AI and ML and digital control tower technology, over the next couple

of years will offer the most impact for gleaning and leveraging data

insights. This holds the potential to truly change the game for

enterprise supply chain execs as they can track conditions in real-time,

detecting issues and addressing them proactively for optimization.”

Investment Challenges and Innovation Roadblocks

Though speed-to-market was ranked as a top investment driver for 69% of

respondents, resistance to change is the number one challenge to driving

innovation for 42% of respondents. The inability to assess the potential

of new technology has risen over the last year, indicating a disconnect

between technology hype and technology value. Executives struggle to

visualize and quantify the measurable impact that a technology will have

on their business. To address this, executives must underscore the

measurable impact that AI/ML and cognitive analytics will have, as a

true step change towards the performance of global supply chains.

Providers that have a proven value delivery track record in the AI/ML

space will hold a competitive advantage overcoming this challenge.

Another way executives are driving innovation is through cloud

technologies. Cloud adoption is viewed as enabling speed-to-market by

respondents. Sixty-four percent believe cloud helps them quickly adapt

to business needs and drive business agility 2X faster than any other

technology.

“Competing in a world of infinite customer choice and increasing

distribution complexity will be impossible for firms that don’t upgrade

their supply chain innovation and agility quotient. It isn’t easy,

executives are facing technology hype-cycle fatigue because the

inability to map technologies to specific, practical and impactful

use-cases continues to be an innovation impediment,” said Gaurav Pant,

Chief Insights Officer at Incisiv. “Leveraging advanced analytics to

focus on specific use-cases, using cloud-based software to improve

business agility and investing in the right talent are core ingredients

to what will move the needle on innovation.”

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

Phoenix, this week, May 13-16, in booth #313 (JDA) and booth #325 (KPMG)

where attendees can access the 2019 Digital Supply Chain Investment

Survey results. JDA will also be showcasing its moonshot – the

Autonomous Supply Chain!

Survey Methodology

Incisiv collected responses from 93 supply chain executives in the

retail, manufacturing and logistics industries in February 2019 to

determine the findings. 58% of respondents are from companies that are

worth more than $1 billion and 74% of respondents decide or directly

influence supply chain purchase decisions.

Additional Resources:

Tweet this: New

About KPMG LLP

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

Cooperative ("KPMG International"). KPMG International's independent

member firms have 207,000 professionals in 153 countries and

territories. Learn more at www.kpmg.com/us.

Some or all of the services described herein may not be permissible for

KPMG audit clients and their affiliates or related entities. Twitter: @KPMGUS_News

About JDA Software, Inc.

JDA Software is the proven leader in artificial intelligence and machine

learning (AI/ML)-driven supply chain and retail solutions for 4,000 of

the world’s leading retail, manufacturing and logistics companies. JDA

enables an Autonomous Supply Chain™ by connecting its cognitive SaaS

solutions from end-to-end - across planning, execution and delivery -

with a broad partner ecosystem, empowering customers to better predict

and shape demand, transform their product delivery and deliver

outstanding customer experiences. JDA’s world-class client brands

include 75 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

Social Networks:

Blog:

Facebook:

Instagram:

LinkedIn:

Twitter:

YouTube:

“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 Public Relations Contact:

Jolene Peixoto, Senior

Director, Corporate Communications

Tel: +1 978-475-0524, jolene.peixoto@jda.com