Key Supply Chain Visibility Statistics – MY Choice
- Only 6% of companies have complete visibility across their supply chain.
- 21% of companies have no visibility beyond their tier-1 suppliers.
- 65% of companies experience a lack of real-time visibility into their supply chain.
- 36% of companies identify visibility gaps as the biggest barrier to supply chain optimization.
- 70% of supply chain professionals believe that visibility will become more important in the next 5 years.
- The lack of visibility increases the risk of supply chain disruptions, which can cost companies up to $5.2 million per incident.
- The majority of supply chain professionals (60%) use manual processes to manage supply chain data.
- In a survey of 350 supply chain professionals, 51% reported that they use supply chain visibility to mitigate risks and disruptions.
- 46% of companies cite a lack of technology integration as a major obstacle to achieving end-to-end supply chain visibility.
- The pharmaceutical industry places a high importance on supply chain visibility due to the need for traceability and compliance with regulations.
- Retail companies prioritize supply chain visibility to ensure on-time delivery and efficient inventory management.
- A study by Accenture found that companies with high supply chain visibility had 50% higher perfect order rates than those with low visibility.
Supply Chain Visibility Stats
| Topic | Statistics |
|---|---|
| Increase in productivity, space usage, and stock use efficiency with integrated order processing | 25%, 20%, and 30% respectively [0] |
| Companies not using AI for operations | 46% [0] |
| Companies with limited AI usage | 50.1% [0] |
| Factors increasing supply chain spending in 2018 | Cutting costs (25%), SCM automation (25%), and market expansion (23.7%) [0] |
| Expected CAGR of global supply chain management market from 2020-2027 | 11.2% [0][1][2] |
| Predicted market share of transportation management systems worldwide by the end of 2025 | $4.8 billion [0] |
| Companies leveraging machine learning to boost forecast accuracy in SCM initiatives | 19% [0] |
| Organizations with no tech systems in place for monitoring supply chain performance | 63% [0] |
| Leading supply chain market constraints | Containing cost increases (32%), facing global competition (28%), and adapting to customer expectations (27%) [0] |
| Global supply chain market size value | $120.70 billion in 2021 and a predicted $261.89 billion in 2028 [1][2] |
| Logistics Automation Market with the highest CAGR | Predicted rate of 12.4% [1][2] |
| Manufacturers updating their operations with IoT implementations and analytics by 2019 | 75% of large manufacturers [3] |
| Healthcare respondents that have regionalized their supply chains and moved production closer to end markets | 60% and 33% respectively [4] |
| Supply Chain Visibility Software | |
| Estimated average spending for employees for SCM software by 2025 | $8.08 [0] |
| Most common method of tracking inventory for small business owners | Inventory through accounting software like Quickbooks, at 24% [1][2] |
| Percentage of supply chain management industry investing in warehouse management software and automation | 45.1% [2] |
| Estimated percentage of all business software that will incorporate cognitive computing functions by 2020 | 50% [5] |
| Supply Chain Visibility Latest | |
| Companies that believe supply chain management gives them a competitive edge | 57% [0] |
| Industry professionals that prioritize cost reduction in supply chain management | 70% [0] |
| Other priorities for supply chain professionals | Data and analytics (6.6%), customer service (4%), adding new talent (4%), eCommerce (2.6%), and direct-to-consumer sales (2.6%) [0] |
| Executives in the logistics, transportation, and supply chain sectors reporting changes in industry processes | 65% [0] |
| Top business priority for 30% of supply chain professionals | Quick response to customer mandates [0] |
| Global retailers that underwent little disruption due to the pandemic | 32% [0] |
| Retailers worldwide that reported heavy disruption due to the pandemic | 12% [0] |
| Retailers challenged to adapt their supply chain for ecommerce | 64% [0] |
| Retailers that tried to find alternative sourcing options | 28% [0] |
| Retailers that underwent shortages and out-of-stock events | 28% [0] |
| Companies with total visibility over their supply chains | 31% [0] |
| Companies with a proactive supply chain network | 22% [0] |
| Companies with limited visibility of their supply chain | 62% [0] |
The Importance of Supply Chain Visibility
Supply chain visibility is crucial for ensuring efficient and effective supply chain management. Here are some statistics that highlight the importance of supply chain visibility:
- 79% of companies with high-performing supply chains achieve above-average revenue growth. (Accenture)
- 70% of companies say that supply chain visibility is their top strategic priority. (GEODIS)
- 65% of companies have experienced supply chain disruptions in the past 5 years. (Deloitte)
- 33% of companies say that supply chain disruptions have a significant impact on their business. (Deloitte)
The State of Supply Chain Visibility
Despite its importance, many companies still struggle with achieving supply chain visibility. Here are some statistics that highlight the current state of supply chain visibility:
- Only 6% of companies have achieved full supply chain visibility. (GEODIS)
- 84% of companies have limited visibility beyond their Tier 1 suppliers. (GEODIS)
- 67% of companies say that a lack of visibility is the biggest roadblock to achieving end-to-end supply chain visibility. (GEODIS)
- Only 39% of companies have implemented advanced analytics and machine learning tools for supply chain visibility. (GEODIS)
Benefits of Supply Chain Visibility
Supply chain visibility can provide numerous benefits to companies, including increased efficiency, reduced costs, and improved customer satisfaction. Here are some statistics that highlight the benefits of supply chain visibility:
- Companies with end-to-end supply chain visibility have a 20% reduction in inventory carrying costs. (GEODIS)
- Companies with end-to-end supply chain visibility have a 35% reduction in stockouts. (GEODIS)
- 78% of customers say that real-time visibility into their order status is important. (Zebra Technologies)
- Companies with end-to-end supply chain visibility have a 15% reduction in order cycle times. (GEODIS)
Challenges to Achieving Supply Chain Visibility
Achieving supply chain visibility can be challenging, particularly in today’s complex and interconnected supply chains. Here are some statistics that highlight the challenges to achieving supply chain visibility:
- 71% of companies say that supply chain complexity is a significant barrier to achieving end-to-end supply chain visibility. (GEODIS)
- 53% of companies say that a lack of standardized processes and data is a barrier to achieving end-to-end supply chain visibility. (GEODIS)
- 46% of companies say that data quality is a barrier to achieving end-to-end supply chain visibility. (GEODIS)
- 36% of companies say that legacy technology systems are a barrier to achieving end-to-end supply chain visibility. (GEODIS)
Emerging Technologies for Supply Chain Visibility
New technologies are emerging that can help companies overcome the challenges to achieving supply chain visibility. Here are some statistics that highlight emerging technologies for supply chain visibility:
- The global market for supply chain visibility software is expected to grow from $12.24 billion in 2020 to $27.41 billion by 2026, at a CAGR of 14.9%. (MarketsandMarkets)
- About 71% of consumers say that they would be willing to pay a premium of up to 5% for products with better supply chain visibility.
- Companies that invest in supply chain visibility technologies can see up to a 50% reduction in inventory carrying costs.
- The average cost of a single late shipment is $15,000.
- Supply chain visibility technologies can help reduce transportation costs by up to 20%.
- The global supply chain visibility market is expected to reach $6.8 billion by 2025.
- The food and beverage industry is expected to be one of the fastest-growing segments in the supply chain visibility market.
- The pharmaceutical and healthcare industry is also expected to see significant growth in the supply chain visibility market, with an estimated CAGR of 18.1% from 2020 to 2027.
- Companies that adopt supply chain visibility technologies can improve their customer satisfaction rates by up to 20%.
- About 62% of companies consider supply chain visibility to be their top strategic priority.
- Companies that invest in supply chain visibility technologies can see up to a 75% reduction in lead times.
- The global pandemic has highlighted the importance of supply chain visibility in ensuring the resilience of supply chains.
- Real-time supply chain visibility is becoming increasingly important, with the adoption of technologies such as the Internet of Things (IoT) and blockchain.
- IoT sensors can provide real-time data on product location, temperature, and other important factors, allowing for greater supply chain transparency and efficiency.
- Blockchain technology can provide a secure, tamper-proof ledger of supply chain data, allowing for increased trust and transparency between supply chain partners.
In conclusion, supply chain visibility is a critical component of modern supply chain management. Companies that invest in supply chain visibility technologies can see significant improvements in efficiency, cost savings, and customer satisfaction. As the global supply chain visibility market continues to grow, companies that prioritize supply chain visibility will be better equipped to handle the challenges of today’s rapidly changing business environment.
