Supply chain planning is a critical aspect of modern businesses as it helps organizations optimize their operations, minimize costs, and increase efficiency. The field is rapidly evolving and adapting to new technologies, data analysis techniques, and changing customer demands.
In this article, we’ll explore statistics on supply chain planning, including trends, adoption, market analysis, demographics, and more.
Key Supply Chain Planning Statistics 2023 – MY Choice
- Approximately 70% of businesses state that demand forecasting is one of their major supply chain planning challenges.
- The majority of businesses (around 90%) use spreadsheets for supply chain planning.
- In 2019, the global supply chain planning market size was valued at over $5 billion.
- Approximately 60% of companies struggle with balancing supply and demand in their supply chain planning.
- Over 40% of businesses have experienced a significant supply chain disruption in the past year.
- The majority of companies (80%) believe that the adoption of digital supply chain planning tools would significantly improve their processes.
- Over 50% of companies state that real-time visibility into the supply chain is a critical factor for success.
- Approximately 60% of businesses believe that the use of artificial intelligence in supply chain planning would improve their processes.
- The majority of businesses (70%) believe that the integration of suppliers into their supply chain planning processes is crucial.
- Around 90% of companies believe that supply chain planning is critical to their overall business success.
Trends in Supply Chain Planning
- The global supply chain planning market is expected to reach $11.3 billion by 2025, growing at a CAGR of 9.2% from 2020 to 2025. (Report Linker)
- A survey of 600 supply chain executives found that 87% believe supply chain planning will be more important in the next five years. (Deloitte)
- 85% of companies are looking to adopt new technologies, such as artificial intelligence, to improve their supply chain planning processes. (PwC)
- The use of big data analytics in supply chain planning has increased by 40% over the last three years. (Gartner)
- 69% of supply chain planning professionals believe that predictive analytics will have the most significant impact on their industry in the next five years. (Accenture)
Adoption of Supply Chain Planning
- The majority of companies (78%) have adopted some form of supply chain planning technology, with 47% using advanced planning systems. (Gartner)
- The adoption of cloud-based supply chain planning systems has increased by 25% over the last two years. (Forrester Research)
- Over 50% of companies have reported a significant improvement in their supply chain planning processes since adopting new technologies. (Deloitte)
- 60% of companies have increased their investment in supply chain planning technologies over the last three years. (IDC)
- The average company using advanced supply chain planning systems has reduced their lead time by 20%. (Accenture)
Market Analysis of Supply Chain Planning
- The Asia-Pacific region accounts for the largest share of the global supply chain planning market, with a 38% share in 2020. (Report Linker)
- The North American region is expected to grow at the highest CAGR from 2020 to 2025, due to increased demand from various industries. (Report Linker)
- The retail industry has the largest adoption of supply chain planning technologies, with 80% of companies using some form of planning system. (Gartner)
- The food and beverage industry is expected to experience the highest growth in demand for supply chain planning technologies over the next five years. (Report Linker)
- The transportation and logistics industry has seen a 30% increase in the adoption of supply chain planning technologies over the last three years. (IDC)
Demographics of Supply Chain Planning
- The average age of a supply chain planning professional is 40 years old. (Accenture)
- 70% of supply chain planning professionals hold a bachelor’s degree or higher. (Deloitte)
- 53% of supply chain planning professionals are based in urban areas. (Gartner)
- The majority of supply chain planning professionals (70%) work for large enterprises with over 1,000 employees. (Deloitte)
- 60% of supply chain planning professionals are male. (Accenture)
Benefits of Supply Chain Planning
- Improved Delivery Performance:
Effective supply chain planning can help organizations improve delivery performance, reducing the number of late deliveries and increasing customer satisfaction.
- Increased Inventory Accuracy:
By improving the accuracy of inventory management, supply chain planning can reduce the risk of stock shortages and overstocking, leading to cost savings and improved inventory turnover.
- Improved Forecasting Accuracy:
Accurate forecasting allows organizations to better plan for demand and reduce waste.
- Increased Collaboration:
Improved collaboration between suppliers, manufacturers, distributors, and retailers helps to ensure a more efficient supply chain and reduces the risk of bottlenecks.
- Reduced Lead Times:
By reducing lead times, organizations can reduce the time it takes to get products from the manufacturer to the customer, improving response times and reducing the risk of stock shortages.
- Improved Cost Management:
Effective supply chain planning can help organizations to better manage costs, reducing the risk of overspending and improving profitability.
- Improved Sustainability: By reducing waste and improving the efficiency of the supply chain, organizations can improve their sustainability and reduce their environmental impact.
- Improved Visibility:
Improved visibility into the supply chain allows organizations to identify potential issues before they become problems, reducing the risk of disruptions and improving overall performance.
Key Components of Supply Chain Planning
- Demand Planning:
This involves forecasting demand for products and services, taking into account factors such as market trends and seasonal fluctuations.
- Supply Planning:
This involves planning and coordinating the activities of suppliers, manufacturers, distributors, and retailers to ensure an efficient supply chain.
- Inventory Management:
This involves managing the levels of inventory to ensure that stock levels are maintained at a level that meets customer demand while minimizing the risk of overstocking.
- Capacity Planning:
This involves ensuring that the resources and capacities needed to meet demand are available, including labor, materials, and equipment.
- Transportation Planning:
This involves planning and coordinating the movement of goods from suppliers to customers, including the selection of carriers and the management of transit times.
- Sourcing and Procurement:
This involves sourcing and purchasing the materials and components needed to produce products and services.
- Production Planning:
This involves planning the production of products and services, taking into account factors such as lead times, capacity constraints, and resource availability.
- Quality Management:
This involves ensuring that products and services meet the quality standards set by the organization.
The Future of Supply Chain Planning
- Increased Automation:
The increasing use of automation in supply chain planning is expected to improve efficiency and reduce the risk of errors.
- Increased Data Analytics:
The use of big data and advanced analytics is expected to provide organizations with a deeper understanding of supply chain performance, enabling them to make better decisions and improve performance.
- Increased Collaboration:
The increasing use of digital technologies is expected to improve collaboration between supply chain partners, reducing the risk of bottlenecks and improving overall performance.
- Increased Sustainability:
The growing focus on sustainability is expected to drive organizations to implement more environmentally friendly practices in their supply chains, reducing their impact on the environment.
- Increased Visibility:
The increasing use of digital technologies is expected to provide organizations with greater visibility into their supply chains, allowing them to identify potential issues before they become problems.
Supply Chain Planning Usage Statistics
- Companies can reap a 25% increase in productivity, a 20% gain in space usage, and a 30% improvement in stock use efficiency if they use integrated order processing for their inventory system.
- 46% of organizations don’t use AI at all for their operations while 50.1% report limited usage.
Supply Chain Planning Market Statistics
- The factors that increased supply chain spending in 2018 are cutting costs (25%), SCM automation (25%), and market expansion (23.7%).
- Regardless of the pandemic, the global supply chain management market is set to grow at a CAGR of 11.2% from 2020 to 2027.
- The market share of transportation management systems worldwide is predicted to hit $4.8 billion before the end of 2025.
- According to a supply chain market analysis, 19% of companies that roll out SCM initiatives leverage machine learning to boost forecast accuracy.
- A supply chain market report says that 63% of organizations have no tech systems in place for monitoring supply chain performance.
- The leading supply chain market constraints are containing cost increases (32%), facing global competition (28%), and adapting to customer expectations (27%).
- The supply chain management market was valued at $18,699.45 million in 2020, and is projected to reach $52,632.37 million by 2030, registering a CAGR of 10.7%.
- Post COVID 19, the size of the supply chain management market is estimated to grow from $18,699.45 million in 2020 and projected to reach $52,632.37 million by 2030, at a CAGR of 10.7%.
- The supply chain management market is concentrated with major players adopting 50% 60% of the market share.
- The global supply chain market size value is The global supply chain market is expected to experience aCAGR of 11.2%from 2020 to 2027.
- Here are some insights our research uncovered The global supply chain market is expected to experience a CAGR of 11.2% from 2020 to 2027.
- That’s an increase from a market value of $120.70 billion in 2021 to a predicted $261.89 billion in 2028.
- The Global Logistics Automation Market has the highest CAGR of any supply chain market, at a predicted rate of 12.4%.
Supply Chain Planning Software Statistics
- By 2025, the average spending for employees for SCM software will likely be at $8.08.
- IDC estimates that by 2020, 50% of all business software will incorporate some cognitive computing functions.
- However, of those who do track inventory, the most common method is inventory throughaccountingsoftware like Quickbooks, at 24% of smallbusinessowners.
Supply Chain Planning Latest Statistics
- 57% of companies believe that supply chain management gives them a competitive edge that enables them to further develop their business.
- A majority of industry professionals (70%).
- These were followed by data and analytics (6.6%), customer service (4%), adding new talent (4%), eCommerce (2.6%), directtoconsumer sales (2.6%).
- 65% of executives in the logistics, transportation, and supply chain sectors report changes in industry processes.
- 30% of supply chain professionals say that a quick response to customer mandates is a top business priority.
- 32% of global retailers stated that they underwent little disruption.
- Only 12% of retailers worldwide reported heavy disruption due to the pandemic.
- 64% of retailers were challenged to adapt their supply chain for ecommerce.
- 28% tried to find alternative sourcing options.
- 28% underwent shortages and outof.
- Proof of this is the fact that 69% of companies do not have total visibility over their supply chains.
- Only 22% of companies have a proactive supply chain network.
- 62% of companies have limited visibility of their supply chain and 15% only have visibility on production.
- Meanwhile, 6% report full visibility, and 17% say they have extended supply chain visibility.
- The most common KPIs used for supply chain monitoring include daily performance (40%), cost reduction (35%), production service rate (29%), inventory turn (28%), and production time (27%).
- Other factors used are lead time (27%), return rate (25%), and ROA (22%).
- Pre Pandemic Disruptors Supply chain disruptions can cause significant negative losses in terms of finances (62%), logistics (54%), and reputation (54%).
- ( The types of events that can lead to supply chain disruptions are mergers and acquisitions (66%), extreme weather (41%), factory fire (37%), and business sales (33%).
- The top causes of supply chain disruption in the US are unplanned IT outages (68%), adverse weather (62%), loss of talent (51%), cyber attacks (50%), and fire (44%).
- 30% of companies don’t analyze the source of supply chain disruptions.
- This is a 14% increase over the number of 2019 supply chain disruptors which was 3,700.
- 52% of 2020 disruptors in the first nine months of the year led to a “war room” situation.
- Only 39% of 2019 disruptions resulted in a “war room” situation.
- The first nine months of 2020 recorded a 13 percentage point increase.
- Transportation and logistics activities currently account for 12% of the global GDP.
- 74% of supply chain companies utilize 4 or 5 transportation methods.
- Shippers can minimize freight invoice payments by 90 95% if they utilize a transportation management system.
- Using transportation management tools can yield an 8% saving on freight costs.
- Only 35% of shipping companies utilize transportation management systems for their overall SCM strategies.
- The Plans of Executives to Enhance Resilience in Transportation and Logistics in 2020 53% of executives plan to dual source raw materials.
- 47% of executives plan to increase the inventory of critical products.
- 40% plan the nearshoring and expansion of their supplier base.
- 38% plan to regionalize the supply chain.
- 30% plan to reduce the number of SKUs in their product portfolios.
- 27% plan to have higher inventory along the supply chain.
- 27% plan to backup production sites.
- 15% plan to nearshore their own productions.
- 15% plan to increase the number of their distribution centers.
- The most important inventory management practices are forecasting (61.3%), warehouse management (50%), logistics (46.8%).
- These are closely followed by training data scientists (21%), returns management (21%), and data interchange technology (17.7%).
- In addition, some prioritize investing in sensor technology (12.9%), training retail staff in eCommerce (11.3%), retooling DCs (9.7%), and refitting stores to have warehouse capabilities (3.2%).
- 46% of small businesses use don’t track their inventory or don’t have an automated method to track it.
- Only 18% of SMBs utilize inventory management systems.
- 25% more manufacturers are investing in more advanced warehouse management in 2017 than in 2016.
- 36% of supply chain professionals say that one of the top drivers of their analytics initiative is the optimization of inventory management to balance supply and demand.
- The estimated value for outof stock items is $1.14 trillion.
- The estimated value of global inventory distortion among mass merchants and grocery retailers in 2020 is $176.7 billion for overstock and $568.7 billion for outof.
- Inventory Management Strategies to Take Post COVID 19.6% plan to have more inventory.
- 26.9% will keep inventory levels the same but will be changing supplier base.
- 19.2% will keep the same inventory levels but keep the same suppliers.
- 21.6% are unsure which inventory management direction.
- 12.7% of business leaders that inventory management planning is not applicable in their organizations.
- The technologies that are becoming a priority in the supply chain industry are data analysis (41%), IoT (39%), cloud computing (39%), and info security (31%).
- In addition, there are also those interested in predictive analytics (29%), apps (25%), 3D printing (22%), robotics (22%), drones (20%), mobile production units (19%), blockchain (18%), and cognitive robotics (17%).
- 50% of companies believe that technological advancements have a strong impact on the supply chain, logistics, and transportation operations.
- 40.7% of modern companies believe that data analytics will be one of the key technologies for supply chain management in the next two years.
- 28% of supply chain leaders say that analyzing data from multiple systems for SCM is a key benefit of advanced analytics.
- 81% of supply chain managers report that data analytics will be crucial when it comes to reducing costs.
- 75% of large manufacturers are looking to update supply chain operations using IoT and analytics based situational awareness before the end of 2019.
- Only 4% of companies leverage artificial intelligence extensively for their supply chain management efforts.
- Experts predict that 50% of manufacturing supply chains will be able to make directto consumption shipments and home delivery by 2020.
- 50.6% of organizations use warehouse robotics for SCM.
- AR and VR investments for supply chain management jumped from 8% in 2017 to 23% in 2018.
- Pick rate productivity can increase by up to 50% if you use pickto.
- 46% of supply chain professionals still reply on excel spreadsheets for their operations.
- The biggest barriers to tech implementation are cost (48%), ROI calculations 40%), and knowing where to start (35%).
- In addition, there are those who have problems with finding the right supplier (11%) and dealing with potential interruption to current services (10%).
- In 2018, the biggest challenges in supply chain management are visibility (21.1%), fluctuating consumer demand (19.7%), and inventory management (13.2%).
- Some also noted coordinating across sales channels (11.8%), finding talent (9.2%), and keeping up with tech (6.6%).
- Meanwhile, the sourcing (5.3%), ensuring an ethical supply chain (5.3%), manufacturing (4%), and data management (1.3%).
- 24.7% of professionals report that the biggest supply chain management challenge for B2C eCommerce companies is delivery costs.
- Retail Supply Chain Executives Willing to Invest in the Following Areas in 2021 58.6% want to increase investment in omnichannel fulfillment.
- 55.73% productive planning and demand forecasting.
- 52.87% want to enable flexible operations.
- 48.52% want to improve inventory management.
- 40.02% want to invest in real time supply chain visibility.
- 40.02% want to improve integrated operational planning.
- 37.15% want to invest more in systems to automate risk identification and issue resolution.
- 31.52% want to invest in production and distribution automation.
- For example, roughly 45 percent of logistics industry professionals revealed that their plans are unchanged in implementing environmentally sustainable practices.
- Employment of logisticians is projected to grow 30 percent from 2020 to 2030, much faster than the average for all occupations.
- Further, while approximately 20% of all supply chain data is structured and can be easily analyzed, 80% of supply chain data is unstructured or dark data.
- Lenovo uses IBM Sterling Supply Chain Insights with Watson Shrinks its average response time to supply chain disruptions from days to minutes up to 90% faster than before.
- The number of U.S. warehouses has grown 6.8% over the past five years.
- The number of companies not looking at supply chain automation is currently as high as 40%, but will drop to 17% by the end of 2018.
- For retail, inventory is accurate just 63% of the time, on average.
- Some 44% of U.S shoppers are using both online and in store purchase and pickup options simultaneously.
- 51% of B2B buyers are looking at more content before they make purchasing decisions than they did a year ago Companies like yours are looking at more things online before they make any decision, including picking a WMS or supply chain partner.
- 79% of logistics and supply chain companies are relying on content for leads because they see it as an effective tool.
- 79% of companies with high performing supply chains achieve revenue growth greater than the average within their industries Want to know where to invest your money?.
- Revenue at “fully integrated” companies is outpacing non integrated companies by 20% Building on the stat before.
- For data security, people think cloud storage is 10% riskier than it actually is.
- However, the risk of compromise for data that’s on premise is 24% higher than people think it is These new systems and predictive models are going to make a lot of data; that data is logistics lifeblood.
- Ecommerce is the main reason cited for UPS’s 2.3% yearover year increase in package volume in the quarter ending March 31, 2017.
- Total Students 169 126 Male 58% 65% Female 42% 35% Minorities.
- ** 9% 9% International 18% 13%.
- This is compared to just 70% of respondents across all industries.
- Of survey respondents in that same survey say that they have implemented real time data sharing into their supply chains, but only 13% have done so effectively.
- “Supply Chain Top 25” as of a few years ago, compared with returns at 6.43% for companies on the Dow Jones Industrial Average.
- This means that 64% of retailers did not already have a plan for eCommerce!.
- 46% of supply chain professionals still rely on excel spreadsheets for their operations Are we in 2021 or 1995?.
- Working in the supply chain industry, I learned from prospect calls that many companies do not have full visibility, however, 69% was surprisingly high!.
- 58.6% of retail supply chain executives want to increase investment in omnichannel fulfillment.
- 79% of companies with high performing supply chains achieve revenue growth above average within their industries.
- Fashion is a $2.5 trillion industry, producing 10% of global carbon emissions, 20% of global wastewater, and vast biodiversity loss.
- In fact, 83% of supply chain professionals said that ethics are extremely (53%) or very important (30%).
- According to recent research 69% of surveyed companies are eliminating discrimination in the workplace.
- 63% are making efforts to uphold environmental responsibility 57% are monitoring labor conditions.
- 56% are fighting corruption 55% are deploying environmentally.
- Ultimately, this is the only way to achieve lower total costs for a model where transportation can account for as much as 60 percent of total operational costs, a significant portion of a company’s supply chain costs.
- For instance, it is estimated that over 30% of operational warehouse workers will be supplemented by collaborative robots by 2023.
- Also, almost 50% of large global companies will be using artificial intelligence, advanced analytics and Internet of Things in supply chain operations.
- Well, according to our extensive research Only6% of companies report full visibility on their supply chain.69% of companies do not have total visibility.
- Only 38.8% of U.S. small businesses experienced supply chain delays due to the COVID.
- Here are the facts Reducing supply chain costs from 9% to 4% can double profits.
- This is especially true for Industrial Suppliers, where the average supply chain cost is 13.2%, while the best companies have managed to optimize this number to 7.9%.
- Supply chains have a huge impact on company 57% of companies believe that supply chain management gives them a competitive edge.
- And 70% believed that supply chains are a keydriverfor qualitycustomer service.
- And 70% believed that supply chains are a key Supply chains provide higher company growth through a wider selection of customized, reliable, sustainable, and delivered as rapidly as possible products.
- These factors play a key role in growth, and here’s how much demand rose from each factor wider selection (71%), customized (76%), reliable (73%), sustainable (69%), and rapid delivery (76%).
- The Transportation Management System is expected to have a CAGR of 11.7% from 2021 to 2028.
- However, this size is expected to experience a CAGR of 12.4%, meaning it may grow to $82.3 billion by 2026.
- According to our research Only 22% of companies have a proactive supply chain network.
- 43% of small businesses don’t track their inventory.
- And 21% report that they “don’t have inventory.”.
- 67.4% of supply chain managers use Excel spreadsheets as a management tool.
- And this number only rises with experience, as around half of new investors use it, while over 75% of late majority managers do.
- On average, U.S. retail operations have a supply chain accuracy of only 63%.
- For example, 34% of businesses have shipped an order late due to selling a product that wasn’t in stock.
- Due to the COVID19 pandemic, the estimated value for outof stock items in 2020 was $1.14 trillion.
- Globally, 12% of retailers reported heavy supply chain disruptions due to COVID.
- This is a surprisingly low number, as 32% of global retailers reported that they experienced little disruption.
- However, maintaining stock items was a much bigger issue, as 28% of respondents underwent shortages and outof stocks and tried to find alternative sourcing options.
- Between 2019 2020, overall supply chain disruptions increased by 14%.
- Supply chain disruptions can cause a massive 62% loss in finances.
- And other aspects of business that can be hit hard by supply chain disruptions includelogisticsand reputation, which see an average 54% hit.
- supply chain disruptions include The #1 cause of global supply chain disruptions is mergers and acquisitions at 66%.
- And other common causes of supply chain disruption include extreme weather (41%), factory fire (37%), and business sales (33%).
- The #1 cause of U.S. supply chain disruptions is unplanned IT outages at 68%.
- And other common causes of supply chain disruption include adverse weather (62%), loss of talent (51%), cyber attacks (50%), and fire (44%).
- Supply chain disruptions can causefinancelosses of 62%, and reducing supply chain costs from 9% to 4% can double profits.
- After all, 43% of small businesses don’t even track their inventory.
- It’s expected to grow with a CAGR of 11.2% from 2020 to 2027, despite the COVID 19 pandemic throwing a wrench in the industry.
- In addition, the Transportation Management System industry is worth $120.7 billion and is expected to see a CAGR of 11.7%, bringing its value up to $261.89 billion in 2028.
- Its CAGR is even higher than these other two industries’ at 12.4%, likely growing from $50.9 billion in 2020 to $82.3 billion in 2026.
- This issue is exacerbated by the fact that just 22% of companies have a proactive supply chain, which means just 22% of companies can shift to meet supply and demand changes before they cause too many problems.
- Furthermore, 43% of small businesses don’t track their inventory, which makes it difficult, if not impossible, to accurately serve their customers.
- 57% of companies believe that supply chain management gives them a competitive edge, and they’re right.
- Something as simple as reducing supply chain costs from 9% to 4% has the potential to double profits.
- Only 6% of companies report full visibility on their supply chain, while 43% of small businesses don’t track their inventory.
- This can lead to more supply chain disruptions, costing a massive 62% hit to finances.
- According to a recent Logistics Management annual survey of logistics and supply chain salaries based on 687 respondents, the average supply chain manager salary dropped from $129,000 to $117,000.
- Earning an advanced degree in supply chain management or logistics prepares you to enter into a highly developed industry, projected by the United States Bureau of Labor Statistics to grow 22% between 2012 and 2023.
- The earners in the bottom 10% make an average of $32.04 an hour or $66,630 a year.
- Those in the top are earning $87.87 an hour or $182,780 a year, according to data from the BLS.