Delivering Digital Supply Chain Solutions to Businesses

2.1

Key findings

• Talent shortages, market competition and access to funding are most likely to be preventing technology, research and development (R&D) and innovation professionals from developing and providing digital supply chain solutions.
• Technology, R&D and innovation professionals find it easy to access large companies and SMEs when it comes to demonstrating their digital supply chain solutions.
• On average, it takes two months for technology, R&D and innovation professionals to respond to tenders, while it takes an average of four months to complete a typical procurement process.
• Many technology, R&D and innovation professionals have experienced challenges including price pressure, lengthy and complex procurement cycles and highly competitive bidding processes when bidding for contracts.
• Organisations are most likely to seek to address talent shortages by implementing new technologies to attract the best talent and supporting organisations to develop relevant content and materials for people who are studying.
• Technology providers are most likely to be marketing their digital supply chain solutions through online marketing and advertising and are finding that messages surrounding improved customer experience and reduced costs and waste are most likely to resonate with clients.

2.2

Barriers to delivering digital supply chain solutions

• Talent shortages, market competition and access to funding are hampering digital transformation efforts

According to our research, technology, R&D and innovation professionals surveyed are most likely to say that talent shortages (42%/212) are the most significant barriers their company faces when developing and providing digital supply chain solutions. Market competition (42%/212) and access to funding (40%/202) are also key concerns.

Interestingly, male and female respondents have differing perceptions on the main barriers. We interviewed 504 people, 40% of whom are women. Male respondents (47%/141) are most likely to say that talent shortages are the most significant barrier when developing and providing digital supply chain solutions, while just 36% (73) of female respondents say the same. On the other hand, female respondents (45%/91) are most likely to say their organisation struggles to gain access to funding, while just 36% (108) of male respondents say the same.

Opinions also differ when it comes to AI. Two in five (40%/81) female respondents say that uncertainty around AI ethics is the most significant barrier their company faces, while just under three in ten (29%/87) male respondents say the same. Overall, respondents are least likely to say that the increasingly complex criminal landscape is one of the main barriers preventing their company from developing and providing digital supply chain solutions.

2.3

Accessibility

• Technology providers approach prospective clients with ease

The findings reveal that technology, R&D and innovation professionals surveyed have no trouble getting their digital supply chain solutions in front of large potential clients. In fact, almost nine in ten (87%/438) respondents say they find large companies and SMEs to be accessible¹ when it comes to demonstrating their digital supply chain solutions. However, just a quarter (25%/126) say they find businesses very accessible, while over three in five (62%/312) say they find them only somewhat accessible.

2.4

The procurement process

• The average procurement process takes four months to complete

According to the research, on average¹ it takes technology, R&D and innovation professionals surveyed two months to respond to a tender when a prospective client is looking for a provider for a new digital supply chain solution. Respondents are most likely to say that it takes them two to three months (54%/272) to respond to a tender, while almost a third (32%/161) say it takes them less than one month.

One in seven (14%/71) technology, R&D and innovation professionals surveyed say it takes them four to six months to respond to a tender and zero (0%) respondents say it takes more than six months. The research also shows that on average it takes technology, R&D and innovation professionals surveyed four months to complete a typical procurement process. Respondents are most likely to say a typical procurement process takes four to six months (51%/257), while over a third (35%/176) say it takes up to three months. Meanwhile, just under one in seven (13%/66) say a typical procurement process takes 7-12 months, while zero (0%) respondents say it takes more than 12 months.

“Clients have different requirements, even though you’d think that they all have very similar sales models, and therefore their needs would be the same. Actually, we find that clients have very specific challenges. To build an off the shelf solution that works for everyone is quite difficult. What we’ve gone with is an element of standardisation with a heavy layer of customisation on top of that, where we can effectively give 80% of the market, 75% of the things they want. When we initially started doing this, we tried to give 100% to the clients we’re dealing with, and we found that okay, that works. But it works for 3% of the market. Then, you have to come up with a completely new solution for the other 97.” 

Senior Technical Director, South East

The data shows that over half (54%/272) of technology, R&D and innovation professionals surveyed have encountered challenges during the procurement process when bidding for contracts for the adoption of their digital supply chain products. Respondents who have encountered challenges when bidding for contracts are most likely to say they have experienced price pressure (45%/227), lengthy and complex procurement cycles (40%/202) and a highly competitive bidding process (39%/197).

2.5

Addressing talent shortages

• Talent shortages are preventing digital supply chain progress

The research reveals that over two in five (42%/212) technology, R&D and innovation professionals surveyed say that a talent shortage is one of the main barriers to developing digital supply chain solutions. These respondents are most likely to say that their company is seeking to address this talent shortage by upskilling their current staff with internal training and development (55%/277) and by implementing wider recruitment initiatives (49%/247). 

Meanwhile, over two in five (42%/212) of these respondents say their company is addressing this by implementing new, innovative technologies to attract the best talent (42%/212). Just over two in five (41%/207) say they are supporting educational organisations to develop relevant content and materials for people who are studying.

Respondents are least likely to say they are addressing the problem by attending university job fares (27%/136). Interestingly, female respondents are slightly more likely to be focusing on upskilling current staff (59%/119 vs. 52%/157) and supporting educational organisations (47%/95 vs. 38%/115) than their male counterparts.

2.6

Marketing digital supply chain solutions

• Technology providers are focusing on online marketing and advertising

The findings show that currently technology, R&D and innovation professionals surveyed are most likely to be marketing their digital supply chain solutions to large businesses through online marketing and advertising (44%/222), engaging with their company’s executive/c-suite team personal network (41%/207) and participating in industry events (40%/202).

“The industry is still focused inwards and on the physical, more traditional sort of marketing. Brand engagement channels that you use in other sectors I don’t think it works that well in logistics. So industry events are really big for us. We partner up with one of our big clients to do a proof of concept model. And so you’ve got people walking up going, ‘hey? This is an interesting solution’. But at the same time you’re showing how it works in practice. This is not just a conceptual thing. This is not, ‘oh, yeah, tech is cool’. You get some doubts along the way, but yeah, we find that works relatively well.”

Senior Technical Director, South East

Meanwhile, respondents are most likely to be marketing their solutions to SMEs through online marketing and advertising (44%/222), a direct sales approach (41%/207), participating in industry events (36%/181) and engaging with their company’s executive/c-suite team personal network (36%/181). Respondents are least likely to be marketing their solutions via out of home campaigns (OOH) / advertising to both large businesses (22%/111) and SMEs (21%/106).

2.7

Communicating the benefits of adopting digital supply chain solutions

• Demonstrating technology’s ability to improve the customer experience is key to winning new business

According to the findings, technology, R&D and innovation professionals surveyed are most likely to say that when communicating the benefits of their digital supply chain propositions, improved customer experience (38%/192), reduced costs and waste (37%/186), enhanced proficiency and productivity (30%/151) and faster times to market (30%/151) most resonate with clients. On the other hand, respondents are least likely to say that clients are most receptive to the idea of facilitating collaboration and innovation (22%/111).

“Most people, when they’re looking for information on digital supply chains, don’t know where to look. Where do you go to find that information? In the old days, information wasn’t readily available. There were only a few places to get it. Now, there’s too much information. We’ve got more information now than ever before. You’ve got to find out what’s trustworthy.”

Director, London