Insights from PwC’s 2023 Supply Chain Survey

PwC’s 2023 Digital Trends in Supply Chain Survey highlights the growing importance of technology in transforming supply chains. In an increasingly digital world with operational disruptions, companies are investing in digital technologies to lower costs, improve efficiency, enhance resilience, and address environmental, social, and governance (ESG) issues. However, the survey reveals several challenges:

  1. Focus on Short-Term Priorities: Many executives are prioritizing short-term goals over transformative actions and investments. They are more concerned with increasing efficiency and managing costs than digitizing supply chains.
  2. Low Automation Plans: Few companies are planning to use technology to automate and enhance various supply chain areas in the next 24 months. This indicates a gap in embracing digital transformation.
  3. Resilience Not a Top Objective: Only about one-third of executives see increasing resilience as a top objective when investing in supply chain technology. Despite the recognition of risk, companies aren’t investing enough in technology to identify, track, and measure supply chain risks.
  4. Digital Skills and Data Challenges: The survey highlights a lack of digital skills among employees and challenges related to the availability of data and digital tools when integrating ESG into supply chains.
  5. Mismatch Between Priorities and Challenges: While cost reduction and efficiency are top priorities, budget constraints are often cited as the main challenge. This disconnect suggests that companies may need to refine their business cases.
  6. Differing Views on Resilience and Risk: There are differences in perceptions between executives with sole responsibility for supply chain decisions and those who share influence. Those with sole responsibility are more confident in their employees’ digital skills and see different priorities and challenges.
  7. ESG Integration Challenges: Companies are under pressure to integrate ESG into supply chains. While there have been improvements, challenges persist, especially concerning digital skills and data availability.

In summary, the survey highlights the need for companies to align their supply chain investments with long-term goals, invest in digital skills and technology to enhance resilience and risk management, and effectively integrate ESG into their supply chains. It also underscores the importance of clear business cases and alignment with strategic objectives when adopting digital technologies in the supply chain.

To tackle the challenges identified in the survey, consider engaging K3 Group’s expert consultants. We offer industry-specific experience and expertise to help businesses align their digital transformation strategies with long-term goals. Our guidance can assist in automating supply chain processes, upskilling employees, and enhancing resilience while mitigating risks. By collaborating with us, organizations can navigate the evolving digital landscape and maximize their supply chain potential.