Research Note: Product-centric ERP Systems Will Incorporate Advanced Supply Chain Visibility & Risk Management Capabilities
Strategic Planning Assumption: By 2028, 80% of product-centric ERP systems will incorporate advanced supply chain visibility and risk management capabilities. (Probability: 0.75)
The COVID-19 pandemic has exposed the vulnerabilities of global supply chains, emphasizing the need for enhanced visibility and risk management capabilities, particularly for product-centric enterprises. As a result, the incorporation of advanced supply chain visibility and risk management features into enterprise resource planning (ERP) systems has become a top priority for businesses seeking to build resilience and adapt to an increasingly volatile market. A study by Gartner predicts that by 2023, 50% of global product-centric enterprises will have invested in real-time transportation visibility solutions (Gartner, 2022). Moreover, a survey by Accenture found that 94% of supply chain leaders believe that digital technologies, such as AI and IoT, will be critical in improving supply chain resilience and agility (Accenture, 2021).
The integration of advanced supply chain visibility and risk management capabilities into product-centric ERP systems enables companies to gain real-time insights into their supply chain operations, from raw material sourcing to final product delivery. By leveraging technologies such as IoT, AI, and blockchain, these systems can provide end-to-end transparency, enabling businesses to identify potential disruptions, assess risks, and take proactive measures to mitigate them. Furthermore, predictive analytics and machine learning algorithms can help companies forecast demand, optimize inventory levels, and simulate various scenarios to build contingency plans. A case study by McKinsey & Company highlights a leading consumer goods company that improved its supply chain agility by 30% and reduced inventory costs by 20% after implementing an advanced supply chain visibility solution within its ERP system (McKinsey & Company, 2023).
Bottom Line
The incorporation of advanced supply chain visibility and risk management capabilities into product-centric ERP systems is set to become a critical factor in building resilience and adaptability in an increasingly complex and uncertain business environment. As the aftermath of the COVID-19 pandemic continues to reshape global supply chains, the adoption of these technologies will be essential for companies seeking to gain real-time insights, mitigate risks, and optimize their operations. With 80% of product-centric ERP systems expected to incorporate these advanced features by 2028, businesses that invest in enhancing their supply chain visibility and risk management capabilities will be well-positioned to navigate future disruptions, drive operational excellence, and maintain a competitive edge in their respective markets.