A new survey has found that 90 percent of companies have not moved to automation or have only partially moved to automation, something it says could stall the global supply chain transformation.
The survey, 2022 State of the Supply Side Report, from Jaggaer, a global leader in autonomous commerce, found that only 9 percent of suppliers are fully automated across B2B commerce.
“Organizations everywhere are revamping their supply chains in order to mitigate risk and improve resiliency. Our research indicates that a lack of widespread automation on the supply side is creating inefficiencies that could stall broader progress and inhibit suppliers’ growth and performance,” said Georg Roesch, Jaggaer’s VP of Direct Procurement Strategy. “True supply chain transformation requires a fully digitalized and frictionless commerce experience for both buyers and suppliers. Closing the gap on the supplier side will be essential to build resilience, boost speed and drive out costs for both parties.”
Suppliers said that responding to requests for proposals and invoice management and collection are the most valuable processes to automate.
The survey also found that supply chain disruptions are hitting suppliers – 73 percent of suppliers said shortages are having a major or severe impact on their business. Other challenges include inflation, workforce shortages, strained production capacity, and geopolitical risks.
However, the survey found that suppliers understand the benefits of automation. Fifty-nine percent of suppliers said automation and artificial intelligence could provide them with access to a larger universe of buyers, while 57 percent said it would provide them with data about how they stack up against their competitors, and 48 percent said automated workflows would help improve collaboration.
“There’s no better time for suppliers to embrace automation, Roesch said. “Inflation, talent shortages, and disruptions will continue to impact global supply chains. At the same time, expectations for suppliers to help advance environmental, social and governance (ESG) and other strategic initiatives will rise. Streamlining core processes will open capacity to focus on tackling these emerging issues and other business priorities.”