B2B integration is the backbone of a digital-first, resilient supply chain, report finds
by CM staff
OpenText commissioned survey reports that B2B integration helps to improve the cost, efficiency, and visibility of supply chain operations.
WATERLOO — A new IDC White Paper, sponsored by OpenText, shows that one of the biggest gaps in supply chain efficiency is the adoption of modern, digital technologies.
As the study suggests, those companies more progressed in their B2B digital transformation journey outperform those less progressed in revenue, profit, customer satisfaction, and responsiveness rate. With the current levels of supply chain complexity, global reach and partner/supplier diversity, it has become clear that the ‘old’ ways of doing things do not work in today’s modern supply chain. This study demonstrates the resiliency of digital transformation in the supply chain, with over 78 per cent of respondents reporting that B2B integration has improved the overall performance of their supply chains.
“B2B integration represents the backbone of a digital-first, resilient supply chain and should be a top priority for those companies that remain encumbered by manual paper-based processes,” said Simon Ellis, Program Vice-President, IDC.
Although supply chain resiliency is critical in today’s disruptive environment, companies have often found it difficult to detail the business case fully, justify return on investment, and build the necessary internal capabilities. While 71 per cent of organizations have increased investments within their supply chain, only 6 per cent of respondents reported being at the highest level of digital supply chain resiliency maturity, indicating that there is still significant progress to be made and value to be realized by utilizing modern processes and digital technologies.
“Connecting, accessing, and analyzing the data produced by today’s digital supply chains to manage your business better is crucial for most organizations today,” said Sandy Ono, Executive Vice-President and Chief Marketing Officer, OpenText. “The latest findings from IDC confirm that the future of the supply chain is to bring information and automation together, and OpenText is proudly leading organizations through these critical business transformations.”
When asked about the level of improvement of their supply chain by automating a range of different kinds of collaboration documents, 80 per cent of survey respondents cite levels of improvement, including the cost of handling and sharing information, staffing efficiencies, and improvements in KPIs. B2B integration capabilities and processing align with top business priorities of reducing operational and logistical costs, faster time to market, improving data quality/accuracy and progressing visibility.
The study also highlighted the significant role of artificial intelligence and advanced analytics in the maturity of B2B integration, 44 per cent of companies reported that they are currently using AI/ML to generate more predictive insights from across their supply chain operations. On the other hand, 17 per cent of respondents reported that they only use basic analytics. Whether B2B information sharing specifically or supply chains more broadly, the ability to leverage all available data is rapidly becoming imperative and a source of competitive disadvantage for companies that fall behind.
The survey, sponsored by OpenText, was conducted by IDC in the third quarter of 2022, and included 811 respondents from manufacturing, life sciences, and retail across ten countries within North America, Western Europe, and APAC.