How eCommerce is Shaping Today’s Supply Chain - Top Stats
The eCommerce market is one of the largest markets in the world today.
However, this was not always the case. Although eCommerce has existed since the early 1990’s, it was not until the last few years that it really started to gain popularity and become the norm.
Today, eCommerce is quite an influential factor; so much so that it has an impact on how businesses build their supply chain processes and tackle the various challenges associated with it.
Excited to find out exactly what we are talking about? Then keep scrolling, because on this page, you will find the top stats on supply chain, eCommerce, and the connection between them!
Contents
- Top Supply Chain Statistics
- eCommerce Supply Chain Statistics
- Conclusion
Top Supply Chain Statistics
Firstly, let’s have a look at general supply chain statistics. This will help you gain a better insight into the state of supply chain in general, as well as understand the various elements that make working on supply chain challenges a job that requires high levels of commitment.
Stat No. 1: 41% of companies believe data analysis to be the top tech priority of supply chain professionals (Finances Online)
What it means:
When we talk about the process of improving supply chain, data analytics is an inextricable part of the discussion. This is because in order to keep up with the ever-evolving needs of consumers in the 21st century, companies must harness and leverage real-time data and integrate it into their operations for optimal results.
If you perceive the supply chain as a static entity, you are mistaken. It is a dynamic, adaptable tool that can be improved and adjusted in accordance with the changes in the state of the world, especially using data analytics. So, it‘s high time that businesses stop restricting themselves to the traditional beliefs about the supply chain, and transform it into a much more advanced element for their business with the help of data analytics.
Stat No. 2: 57% of companies believe that supply chain management gives them a competitive edge that enables further business development (GEODIS)
What it means:
As a business, you may sometimes feel like there are certain elements to your business that you don’t have much control over. However, the supply chain is not one of them. Not only is the supply chain adaptable, but it is also a great tool for you to work on if you want to overtake your competitors.
The fact that more than half of the companies believe that supply chain management gives them a competitive edge for further business development means that this area of your business definitely requires your attention, especially if you are planning to grow exponentially and actually establish yourself as a business. Therefore, this stat is particularly authoritative when it comes to gauging the importance of supply chain and supply chain management.
Stat No. 3: Only 22% companies have a proactive supply chain network (Procurement Tactics)
What it means:
Despite the indubitable importance of supply chain management, the fact that only 22% companies consider themselves to have proactive supply chain processes shows that there is still a lot of work that must be done in terms of focusing on supply chain management.
The main problem with the lack of proactive supply chain is that businesses who relate to that are obviously at a disadvantage as compared to their competitors. Remember: an optimised supply chain is the only way you can ensure fast, smooth, and seamless fulfilment that helps you achieve your goals.
Stat No. 4: It is estimated that the supply chain management industry will value at almost 9 billion dollars by 2024 (Procurement Tactics)
What it means:
The supply chain management industry is quite big. While this means that the stakes are high in terms of actually executing supply chain processes, it also means that you have a plethora of resources at your disposal when it comes to working on supply chain management.
As the industry develops and reaches newer heights, it will become even more convenient and easier for you to make the necessary adjustments to your processes. All of you have to make sure that you are not lagging behind on realising the importance of supply chain management, and getting the hang of it while you can.
Stat No. 5: Supply chain disruptions can cause as much as a 62% loss in finances (Procurement Tactics)
What it means:
It is important to streamline supply chain processes and make sure that there are no hitches in them, this statistic speaks volumes! If you don’t pay attention to your supply chain, you will have to deal with supply chain disruptions. And if supply chain disruptions are not handled properly, then you can be signing up for as much as 62% financial loss.
No business is up for that! If anything, businesses are always struggling to expand their margins and cut back on costs – which means there is no space for any monetary damage incurred due to supply chain disruptions.
Stat No. 6: 68% of companies believe that unplanned IT outages are the #1 cause of supply chain disruptions in the U.S (Procurement Tactics)
What it means:
Yet again, this particular statistic is helpful in terms of understanding the connection between supply chain and technology. Technology can greatly improve your supply chain processes. It makes them more efficient and definitely more profitable. However, this also means that you are likely to have an increased dependence on technology, and hence are more susceptible to technical malfunctions.
Although this statistic provides an insight into the state of supply chains in the US, it can be said that this is relevant for all markets because the efficiency and seamless flow of a supply chain is truly dependent on how well integrated it is with IT processes.
Stat No. 7: Supply chain industry workers make up at least 43% of the total number of U.S. workers (Washing Center for Equitable Growth)
What it means:
Although the supply chain industry is dependent on technology, it doesn’t mean it can do without the human workforce! In fact, manual labour is just as important for seamless supply chain activity as technology and various software systems. Your workers ensure that all processes and sub-processes are paid attention to and are executed without any technical misgivings.
The supply chain environment presents a blend of different factors that must amalgamate and coexist harmoniously if you want the perfect results. This is exactly why so many workers are required in relation to supply chain jobs.
Stat No. 8: 79% of companies with high-performing supply chains have better revenue growth than the average in their industry (Invesp)
What it means:
Again, this shows that the state of your supply chain is a huge factor in relation to how well you actually do as compared to your competitors. Just a little bit of attention given to your supply chain along with adequate investment can help you expand your revenue beyond the imagination of other companies in your industry.
It truly does provide you with a competitive advantage, and 79% of companies can stand by this! So, if you see your revenue dwindling, maybe it’s time to take a look at what the current state of your supply chain is.
Stat No. 9: 57% of businesses report poor visibility across their supply chain (Invesp)
What it means:
Visibility is an important factor when it comes to the supply chain. The fact that 57% of businesses don’t have good visibility is very concerning, because it means that they are lacking one of the most important aspects of the supply chain.
The good thing, however, is that you can improve the visibility across your supply chain in various ways. Integrating the right technology, using data analytics, and empowering your workforce with the latest software solutions are just some ways you can improve visibility in your supply chain frameworks – and hence, this is a problem that can easily be tackled.
Stat No. 10: Businesses with optimal supply chains have 3 times faster cash-to-cash cycles (Invesp)
What it means:
Looking to improve your cash flow? Well, believe it or not, working on your supply chain can help you do that as well, as proven by this statistic businesses that focus on their supply chain will have better cash cycles, and will also be able to gain more profits.
Your supply chain is the backbone of your business, and by paying attention to it you can open yourself up to a world of benefits that will help you move towards success considerably more steadily and confidently. All you have to do is strategize your improvements, and you can make some tangible difference in your financial state.
eCommerce Supply Chain Statistics
We have established two things from the stats above: 1) that the supply chain world is incredibly dynamic and ready to be adjusted in accordance with your needs, and 2) that in order for a successful business journey in today’s day and age, you must pay attention to the way your supply chain operates.
There is no better way to understand both these aspects than considering them side by side in relation to the eCommerce market.
Stat No. 1: Due to the pandemic, as much as 64% of retailers had to adapt their supply chain for eCommerce (Statista)
What it means:
Needless to say, the pandemic introduced some serious changes to how the retail sector operated. This reflected the most in the operation of the supply chain. All processes had to be optimised as a digital experience, because that was the only way customers could actually buy from you.
But the fact that 64% retailers had to and could adapt their supply chain processes in accordance with the needs of the eCommerce world goes on show that it is adaptable. It also shows that eCommerce has an influence on the path norms related to supply chain take, and hence is a good way to pin down the connection between the two.
Stat No. 2: 45.1% in the supply chain management industry are investing in warehouse management software and believe automation to be a key feature (Procurement Tactics)
What it means:
The needs of the eCommerce world are actually quite demanding. You have to keep up with them if you hope to move forward, especially in relation to the supply chain. This is why so many businesses are keen on investing in technology and software that can help them optimise their supply chain.
Warehousing is one of the biggest challenges people face when it comes to eCommerce fulfilment. So, the fact that warehouse management software as well as warehouse automation is the go-to choice of technology for businesses just goes onto prove that the way people deal with their supply chain is dependent now on the requirements of the eCommerce world.
Stat No. 3: 30% of supply chain leaders prioritise fastest, more accurate, and unique fulfilment (Invesp)
What it means:
Fast, more accurate, and unique fulfilment is a consumer expectation for eCommerce shoppers. The fact that a major chunk of supply chain leaders prioritise these elements can help us understand the connection between supply chain processes and eCommerce a lot better.
More and more supply chain leaders as well as executives will be focused on creating a supply chain experience that resonates with the needs of eCommerce customers, so these efforts can be integrated into the overall purchase journey that the customer has. And in this way, supply chain becomes yet another tool in the game of winning the hearts of your eCommerce audience.
Stat No. 4: 81% of supply chain professionals believe that landed costs can be reduced by focusing on analytics (Invesp)
What it means:
As discussed earlier, analytics are an important part of the supply chain world. But when we come to think of it, why is this the case? Mostly, it is because analytics are also a crucial part of eCommerce. In fact, that is why it is necessary to consider data analytics when mapping out your supply chain: it will help you create a better connection with the eCommerce journey, and hence serve your customers better too.
Not only that, but doing this will obviously help you reduce landing costs, as told by this statistic, so it is a win for the business on all grounds!
Stat No. 5: 73% of supply chains had to improve and expand their delivery capabilities (Invesp)
What it means:
eCommerce consumers greatly value a smooth shipping experience. And a smooth shipping experience is indubitably a matter of expanding your delivery capabilities, which can only be done on the supply chain level.
So, once again, a need of a successful eCommerce journey becomes the catalyst of change within the supply chain, which further solidifies the impact eCommerce actually has on supply chain processes and makes it crystal clear that the current state of supply chain all over the world is properly catered to the unique needs of eCommerce businesses.
Stat No. 6: Delivery costs, inventory management, and keeping pace with consumer demand are 3 of the biggest eCommerce supply chain challenges (Invesp)
What it means:
The fact the supply chain must consistently be adapted in accordance with the evolving needs of the eCommerce world also means that things get a little more complicated. This is because in connection to eCommerce, there aren’t just one or two tenets that the supply chain must uphold; but many!
For example, as seen from this stat, when a supply chain is optimised for eCommerce, there is always the cost factor involved. Without investing a lot of money, you can’t provide a seamless delivery service. But, you must also keep it reasonable for the customers as well as yourself because neither would want to pay too much for the delivery.
Then, you have to work on the perfect inventory management set up, because wrong inventory management practices could lead to overstocking, under stocking, and a myriad of other issues that would create complications. And, of course, you must always be in sync with customer demand .
Striking a balance between all these elements can truly take a toll on you, which is why it makes sense that these are pinned to be the biggest challenges supply chain leaders have to face.
Stat No. 7: Last-mile costs represent 41% of the total supply chain costs in shipping (Shopify)
What it means:
Last-mile logistics is a part of the eCommerce fulfilment journey, and more and more businesses are learning to prioritise it in order to provide their customers with the brand experience that they are truly looking for. However, focusing on last-mile logistics involves making some solid changes to the supply chain, which can be hard on the pockets.
Yet, you will see many businesses actually making the leap and making the required changes to the supply chain, as well as making any other required investments. This is because this effort will definitely nudge in the right direction, towards eCommerce success. The main point here is that an eCommerce related element forms the major chunk of supply chain costs these days, and that says a lot about the two.
Stat No. 8: Before Covid-19, only 40% of companies were utilising real-time data for supply chain purposes (Shopify)
What it means:
Read this statistic in tangent with the next one i.e. stat no. 9, and it will make a lot of sense to you. Before Covid-19 hit us and everything went eCommerce, businesses were okay with the traditional supply chain processes. Real-time data and analytics were rarely a part of this picture, because “supply chain” was not synonymous with eCommerce.
Even where the supply chain was optimised, it was not advanced enough to be aligned with eCommerce consumers, and hence even if the connection was there back then, it wasn’t as prominent.
Stat No. 9: In 2020, 65% global enterprises increased their analytics spending (Finances Online)
What it means:
But then, 2020 came by and life as we knew it changed to a great extent. eCommerce became the norm, and businesses realised that if they want to stay in the game, they need to start leveraging analytics. This is why around this time, supply chains were also beginning to be improved in accordance with the needs of eCommerce using analytics!
This has obviously retained way past 2020 – today, two years after the pandemic, businesses are making use of analytics far more than they ever were. The transition from “normal” shopping to eCommerce shopping seems to be a permanent one, which is why the use of analytics to align supply chain processes with eCommerce targets is also an important part of the history.
Stat No. 10: Supply chain software is likely to have 4 times as many cyber attacks in 2023 than there were in 2022 (Procurement Tactics)
What it means:
This might seem like a peculiar one to be on this list – but think of it this way: if someone wanted to hijack your supply chain 10, or even 5 years in the past, would their go-to plan be to attack a software? Not really, because supply chains back then were not so dependent on technology.
Today, thanks to its connection with eCommerce activity, the supply chain is completely independent of software systems and technology. So, the software systems and technology are also more or less a vulnerability that you need to keep in mind.
Wrapping Up
Your eCommerce success and the state of your supply chain are interlinked. The rise of eCommerce has led to the supply chain being dependent on technological advancements. So, if you want your supply chain to align with the needs of your consumers, you can do it but only if you leverage the right technology and software systems and employ them into your operations.
And that note, might want to check out Canary7: the leading eCommerce fulfilment software that can help you improve your supply chain and make your eCommerce venture an unmitigated success.
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