Consumer execs overhaul supply chains, few embed changes daily
According to a new survey, 94 percent of consumer products executives said they are reconfiguring the fundamentals of their supply chain functions. However, only 9 percent said they are embedding that transformation into day-to-day operations.
The survey found that 71 percent of respondents said their companies are now operating under Integrated Business Planning (IBP), which provides a strong foundation for coordinated decision-making. However, only 14 percent of respondents strongly agree that decisions are ultimately acted upon fast, while just 8 percent say IBP enables real-time, signal-driven replanning. Additionally, 6 percent say suppliers can receive, interpret and act on demand and supply signals close to real time. The survey also showed that 73 percent of consumer product CEOs said they planned AI investment for this year, which is higher than last year, and 27 percent of supply chain executives reported being highly confident in their ability to calculate the value in complexity and make portfolio trade-offs.
“The most successful companies will be those that can distinguish between complexity that creates value and complexity that destroys it,” Richard Taylor, EY global consumer products sector leader said.
The report’s authors said growth opportunities “are increasingly emerging in smaller, faster and harder-to-serve demand pools,” and noted that companies that strengthen their ability to calculate “the value in complexity and make the right portfolio trade-offs will be better positioned to capture them. The report noted that greater adoption would result in better alignment across not only supply chain functions but also across commercial and finance functions.
What we know
94 percent of executives said they are reconfiguring the fundamentals of their supply chain functions.
Only 9 percent said they’re embedding that transformation into day-to-day operations.
71 percent of respondents said their companies are now operating under Integrated Business Planning (IBP).
73 percent of consumer product CEOs said they planned AI investment for this year.
27 percent of supply chain executive respondents said they are “highly confident” in this capability.