Technology Advances Stats

Technology Advances Stats

Contents

  • The Latest Supply Chain Technology Statistics
  • General Supply Chain Statistics
  • Supply Chain Problem Statistics
  • Technology Advancement Statistics
  • Logistics Technology Statistics
  • Conclusion

The Latest Supply Chain Technology Stats

The supply chain industry is not what it used to be. Today, it is much easier for businesses to improve their processes – thanks to commendable technology, the supply chain world has progressed beyond what could even be perceived as possible a few years ago. 

Considering that supply chains are an integral component of the success of any business, it makes sense that they are increasingly being focused on when it comes to development. With the help of various technologies such as warehouse, inventory, and order management systems as well as labour management and warehouse control software, businesses can smoothen the logistics progress today to a very great extent. 

If you are looking to bring yourself up to speed with the latest technology stats, then have a look below: we have curated a massive list of supply chain technology stats that cover advancements in technology, logistics technology, and 3PL technology that you can refer to if you are looking to considerably increase your knowledge about your industry. 

General Supply Chain Statistics

The supply chain is often referred to as the life-blood of a company – and these statistics prove the truth in that statement.

  • The global supply chain market size value is $15.85 billion (Zippia). This means that the supply chain industry is huge – there is a lot of investment that goes into this part of the commerce world, mainly because investing in your supply chain procedures means that you are investing in a successful future for your company.
  • The global supply chain is predicted to have a CAGR of 11.2 percent from 2020 to 2027. Mainly, this means that it will be increasing from $15.85 billion to $37.41billion (Procurement Tactics). These numbers not only show that the supply chain industry is already monumental to the economy, but also that it will only grow in the coming years. 
  • The size of the global logistics automation market was valued at USD 55 billion in 2021, and is predicted to exceed that mark by reaching USD 133 billion by 2030 (Acumen Research and Consulting). This means that there is a lot of potential in the logistics industry, especially when it is connected with automation. With automation, it becomes even more lucrative which is exactly why it has such a huge chunk of investment being put towards it.  
  • 45.1 percent of members in the supply chain management industry are investing in warehouse management software and identify that automation within supply chain processes to be a key feature (Procurement Tactics). This is a good sign, because it shows that businesses are now recognising the importance of integrating the right technology in the way they run their supply chain, and it will help them with quite a lot of things including but not limited to cost cutting, 10 times speedier processes, and even more employee retention. 

Supply Chain Problems Statistics

There are some challenges that the supply chain industry still has to face; at least according to the following statistics.

  • Only 6% of companies report full visibility on their supply chain, whereas a whopping 69% don’t have total visibility on their supply chain processes (Zippia). This shows that there is a gap that causes companies to not fully be in control of their supply chain processes. Lack of visibility and not investing in technology that improves visibility is a major setback because it can result in more delays, errors, and problems. 
  • In the US, the Covid-19 pandemic led 38.8 percent of small businesses to experience supply chain delays (Zippia). Covid-19 has an impact on everything – including supply chain processes. The Covid upheaval has caused major delays, and as problems ease down, businesses are still trying to smoothen out their supply chain processes to ensure that they don;t have to face major problems with their supply chain management as a whole. 
  • It is reported that only 22 percent of companies have a proactive supply chain network (Procurement Tactics). This means that almost 80 percent of businesses are not well-equipped to deal with sudden shifts and transitions in supply and demand. Considering that the market is not predictable at all, this could prove to be a major drawback for businesses, especially those that are planning to improve their customer service and expand their sales – which, more or less, is every business. 
  • The percentage of small businesses that don’t track their inventory is 43 percent – out of these, 21 percent say they don’t have an inventory to begin with (Procurement Tactics). These statistics are quite shocking. Almost all businesses that deal with goods should have an inventory, and that inventory must be well-managed. The fact that almost 50% businesses don’t have any mechanisms to track their inventory shows that businesses are not well prepared to deal with the complications that are more than likely to occur during any supply chain process.
  • Surprisingly, 63 percent of managers report that they primarily use Excel spreadsheets to manage their supply chain (Procurement Tactics). Although Excel is one of the most trusted ways to keep records of supply chain processes and manage warehouses, it’s just not enough for warehouse and fulfilment management in today’s time and age. This is because it is not efficient enough, and it is also prone to inaccuracies. Most importantly, it’s just tedious – who wants to scroll through boring spreadsheets? Replacing Excel with top-notch technology that is not only advanced enough to tackle all supply chain problems but is also easy and fun to use and integrate with in the warehouse is an absolute must. 
  • 12 percent of retailers all over the world reported Covid-19 to have caused heavy disruptions to their supply chain processes (Procurement Tactics). This is true for many businesses – no matter what the industry is, almost all businesses and supply chain managers will agree that Covid-19 has caused disruptions in the supply chain.  
  • Supply chains are vulnerable to a range of factors. 66 percent of supply chain disruption all over the world is mergers and acquisitions, whereas 41% are caused by extreme weather (Procurement Tactics). These aspects cannot always be controlled, which means that the only way to ensure they don’t result in a loss for your business in any way, shape or form is to connect the supply chain to the kind of technology that brings flexibility and adaptation to the supply chain.

Technology Advancement Statistics

Robots have not taken over the world yet – but they sure have been providing us with unparalleled convenience the past decade or so. The stats on technology advancements as listed below will blow your mind away. 

  • It was in the last 2 years alone that 90 percent of the world’s data was generated (Leftronic). With the whole world shifting to online interactions for almost two whole years, this is no surprise. But for the purposes of logistics businesses, these statistics prove that there is an indubitable increase in people’s dependence on technology and the Internet. So, if they want to ensure that everything is sorted out, they will level up their technology game. 
  • AI augmentation is likely to hit $2.9 trillion in business value (Gartner). AI augmentation is essentially a form of AI that focuses on an assistive role. The fact that in terms of assistance, AI is going to even improve further and provide even more convenience to people and businesses means that the top priority for everyone should be transition to the use of AI as soon as possible. Jumping on the bandwagon earlier means you will have more experience and the right skills to navigate these aspects. 
  • By 2024, AI in retail is predicted to hit a stunning figure of USD 4.3 billion (P&S Intelligence). Retail is one of the most logistics-centred businesses and the main aspect that improves logistics is AI. This is part of the reason why AI in retail is all set to hit these figures by 2024. 
  • Artificial intelligence will generate 2.3 million jobs in the US alone (Gartner). On one hand, it goes without saying that artificial intelligence will replace humans in at least some roles. However, on the other hand, it will also be producing more jobs for us to venture into. In fact, supply chain logistics is an area that cannot work well without the human element, which is why it is important to improve your labour force in tandem with the automated processes. It can easily be presumed that as time goes by and artificial intelligence becomes an even more integral part of supply chain processes, humans will be needed even more. 

Logistics Technology Statistics

The world of warehouse, inventory, and fulfilment will benefit the most from technology. Here, have a look: 

  • 87% industry decision-makers hope to expand their warehouses by 2024 (Zebra). This is largely a good thing because this means that these industry decision makers feel like they are ready to take on the challenges that come with running a warehouse. However, in order for such ventures to be successful, it is necessary to integrate technology into warehouses and make the expansion process easier. This is especially true for 3PLs, since third-party logistics providers need technological support if they want to move forward. 
  • The global warehouse automation market is predicted to go past USD 30 billion by 2026 (G2). The automation market is expanding, which means that the dependence on automation is also expanding. With these figures, it goes without saying that now is the right time to start rethinking your processes. Third-party logistics providers need to invest in automation tools like warehouse management systems and other software that streamlines fulfilment if they want to build a safer future for their business. 
  • By 2025, it is estimated that about 4 million commercial warehouse robots will be installed in 50,000 warehouses (G2). This will make warehouse, inventory, and order management easier to take care of, and to a great extent. This also means that any logistics business that hasn’t already moved towards integrating technology in their processes should step up and do that now, otherwise they will be left behind struggling to keep up with their competitors. 
  • A 25 percent to 30 percent reduction in average manufacturing and labour costs can be expected with the increased use of robots and artificial intelligence (G20). The best part is that this is not the only way automation and artificial intelligence will help businesses. It is also great because it helps businesses create a customer-centred experience with the help of reliable, trustworthy data and when it is the customer who decides whether your business succeeds or not, this is very important. 
  • 54% of organisations report to have increased supply chain and technical training to retain more workers (G2). Labour shortage is one of the top concerns for logistics businesses, especially 3PLs who need more manpower to sort things out. Technology can help you improve employee retention and ensure that you can create a career path for your employees that they greatly value. 
Logistics Technology Statistics

Remember:

The fool-proof way of ensuring your success in the world of supply chain as a logistics provider is to invest in technology that can greatly simplify your job for you. Thanks to advancements in artificial intelligence, some tools available in the market such as Canary7 can really help you streamline the fulfilment process. 

Some 3PLs may hesitate from depending on technology – afraid that it is costly and hard to maintain. However, this is not the case. If you play your cards right, you can sort out the supply chain experiences and ensure that you are on the right track to success. 

The misconception is that technology is foe, and artificial intelligence exists to replace our jobs. Although the latter is more or less an inevitable reality, it must be acknowledged that if used the right way, the sole purpose of artificial intelligence and technology today is to help humans, including those in the logistics industry! 

So, now is the time to make technology your friend and in turn, make your life better by miles.