How Digital Tools are Transforming Supply Chain Management
Enterprises across Europe are turning to service providers who can offer IoT, predictive analytics, automation and AI in their supply chain management systems to increase resilience and reduce risk.
That's according to a new report report published by Information Services Group (ISG), a leading global technology research and advisory firm.
The 2024 ISG Provider Lens Supply Chain Services report for Europe finds service providers in Europe have adopted a highly-targeted approach to the design and delivery of their supply chain services based on each client's digital maturity.
The digital maturity curve
According to the report, enterprises with low digital maturity are focused on process standardisation and establishing a strong digital foundation, with the priority now on quick wins to address low-hanging fruit, such as process automation or other low-cost, low-risk initiatives.
For clients with moderate digital maturity, the focus shifts to refining existing digital processes and optimising performance.
When it comes to those at the high end of the digital maturity curve, providers focus on maximising the potential of digital technologies, ISG says. They collaborate with clients to develop advanced solutions that leverage AI, ML, IoT and other technologies to transform business processes and create new growth opportunities. This could include creating bespoke digital platforms, implementing predictive analytics models and exploring emerging technologies to stay ahead of the curve.
“The European market has seen a tremendous surge in the demand for digital supply chain services over the past 24 months, driven by a strong focus on Industry 4.0, rising political unrest and stringent regulations,” says Philipp Glatz, ISG partner and Smart Manufacturing Lead for EMEA.
“Compared to the US market, the European market places a greater emphasis on digitalisation, sustainability, risk management, regulatory compliance and resilience.”
A key focus for enterprises
Data-driven supply chain transformation, aimed at cost reduction and process optimisation, remains a key focus for enterprises and their service providers, the report states.
Tools such as analytics, AI, automation and data management are deeply integrated into most solutions. Network optimisation, digital twins and blockchain have also gained traction.
For its ability to process and analyse large, textual datasets, generative AI (GenAI) is being adopted in procurement, supply chain execution and after-sales services, the report finds.
Gen AI is also helping with ordinary supply chain functions such as warranty management, contract management and guided recommendations for customer service agents and supplier risk assessors.
“The dynamics of the global supply chain are changing dramatically, and advanced technologies are pivotal in supporting digital transformation and creating more responsive, circular and sustainable supply chains,” adds Jan Erik Aase, Partner and Global Leader, ISG Provider Lens Research.
“These technologies will be crucial in enabling enterprises to achieve significant operational efficiency and optimization.”
ISG's leaders and stars
The 2024 ISG Provider Lens Supply Chain Services report for Europe evaluates the capabilities of 33 providers across four quadrants: Supply Chain Advisory and Consulting Services, Supply Chain IT Operations Services, Supply Chain BPO Services and Circular Supply Chain Services.
The report names Accenture and Capgemini as Leaders in all four quadrants. HCLTech, Infosys and TCS are named Leaders in three quadrants each, while Genpact, IBM, PwC and Tech Mahindra are named Leaders in two quadrants each. Cognizant, Deloitte, EY, Wipro and WNS are named Leaders in one quadrant apiece.
In addition, Wipro is named as a Rising Star — a company with a "promising portfolio" and "high future potential" by ISG's definition — in two quadrants. Genpact is named a Rising Star in a single quadrant.
In the area of customer experience, Genpact is named the global ISG CX Star Performer for 2024 among supply chain service providers.
Genpact earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence programme, the premier quality recognition for the technology and business services industry.
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