Blue Yonder report

Following a year of intense changes in the logistics industry, new research from Reuters Events Supply Chain in partnership with Blue Yonder reveals the priority strategies and investments for supply chain execution and risk management.

The State of Supply Chain Execution Report 2021 analyzed responses of supply chain professionals and found that the pandemic, customer centricity, rising e-commerce complexity and costs, need for Direct-to-Consumer (D2C), and the risk of financial peril are propelling retailers, manufacturers, and logistics service providers (LSPs) to digitally transform.

Companies looking to capitalize on the omni-channel opportunities created by increased online-order volume over the last 18 months are now prioritizing more agile delivery and fulfillment models, like D2C. Retailers’ and manufacturers’ online sales increased more than 120% over the past year. LSPs have also seen e-commerce volumes explode, reporting a 200% increase compared to 2019-2020.

“In the long term, investment in execution systems like Transportation Management Systems (TMS) and Warehouse Management Systems (WMS), as well as end-to-end visibility, automation, and cloud strategies will help build more sustainable, resilient and agile organizations for the future,” stated Raj Patel, Senior Director, 3PL Industry Strategy, Blue Yonder.

“As the economy transitions to a post-pandemic environment, retailers, manufacturers and LSPs are transforming their transportation and broader supply chain operations to address their most pressing supply chain challenges,” he added.

E-Commerce growth driving tech investments in Supply Chain execution systems

New Blue Yonder and Reuters Events report surveys retailers, manufacturers, and logistics service providers

Pandemic prompts reevaluation of Supply Chain Risk Management

From constraints on raw materials to labor shortages to growing cybersecurity threats on distributed networks, pandemic-related challenges have shifted supply chain risk management priorities:

Respondents are hesitant to pursue near/onshoring plans, with only 29% of retailers/manufacturers making an investment.

Environmental concerns are also being considered when planning for supply chain risks. Over half (53%) of retailers/manufacturers and half (50%) of LSPs plan to invest in sustainability as a strategy for risk management, it was revealed in a press statement.

Companies prioritize DigitalFirst practices and technology investments

With the growth of e-commerce, investment in modern supply chain technologies and new approaches have become essential for businesses to keep pace with shifting trends and customer expectations. The report found that there are various factors driving investment in supply chain technologies and digitalfirst practices. In the current supply chain environment, companies are moving away from legacy systems and prioritizing technologies that enable visibility for customers and their operations, automate processes and support enterprise agility, the report concluded.

Blue Yonder: a new era of supply chain technology

As technology advances at an exponential rate, the world is transforming alongside it to become more connected and empowered. This new technological era is providing customers with hundreds of options, creating new expectations from businesses to balance supply and demand, drive optimisation and provide a seamless end-to-end experience.

With this growth comes new complexities and challenges within the supply chain industry and Blue Yonder, formerly JDA Software, has reimagined its branding to reflect its devotion to endless innovation, and its drive to fulfill the true potential of its customers.

The company’s new name, Blue Yonder, is a reflection of its cloud transformation, product road map and the growing impact of the limitless potential artificial intelligence and machine learning technologies can provide within the supply chain, logistics and retail industries.