(Commonwealth_ A recent study by Loftware highlights the increasing importance of connection and collaboration in global supply chains, emphasizing the transformative role of cloud technology in driving efficiency, ensuring compliance, and reducing costs. According to the research, 90% of industry professionals acknowledge the rising need for improved collaboration across the supply chain to address disruptions and meet evolving consumer demands.
The survey, which gathered insights from over 400 supply chain professionals across 55 countries and various industries, revealed that 84% of companies believe joining an ecosystem where partners share access, data, and standards would significantly improve operational efficiency, compliance, and cost reduction. Additionally, almost 75% of those who answered understood how the cloud could make labeling access easier for trading partners. This shows how important digital transformation is.
Digital Transformation: A Key to Modern Supply Chains
As global supply chains grow increasingly complex, businesses face higher expectations from both partners and consumers. Josh Roffman, EVP of Marketing at Loftware, stated, “Today’s supply chains are more global and complex, while expectations from businesses and consumers have increased. This has led to a greater need for connection and collaboration as companies embrace digital transformation to streamline interactions and ensure compliance with suppliers, customers, and their own facilities.”Digital transformation has become a cornerstone for building resilient, transparent, and agile supply chains. By leveraging technologies like cloud computing, companies can simplify operations, improve traceability, and enhance collaboration across supply chain networks.
Compliance Challenges and Labeling Issues
Maintaining compliance remains a significant challenge for supply chain professionals. Many companies struggle with mislabeling during the receipt of inbound goods, leading to costly fines and inefficiencies. According to the survey, 70% of companies with revenues exceeding $1 billion are forced to relabel goods from suppliers and partners—a process that is resource-intensive and expensive. To address this issue, 77% of respondents indicated that controlled access to labeling processes would be highly beneficial. By implementing connected networks that allow publishers and subscribers to access shared data, standards, and rules, businesses can ensure proper labeling of inbound goods, reducing errors and associated costs.
Protecting Supply Chains Through Innovation
The research also revealed that companies are increasingly adopting innovative technologies to enhance supply chain security and transparency. For example, 78% of professionals believe artificial intelligence (AI) is valuable in analyzing data to detect counterfeit goods, while 59% reported using serialization technology to address supply chain challenges. These technologies play a crucial role in safeguarding products, shipments, and data as they move through global supply chains. AI can help identify anomalies, ensuring product authenticity and reducing risks associated with counterfeiting, while serialization enables detailed tracking of individual items throughout their journey.
Cloud Technology’s Role in Traceability
Facilitating digital transparency is a vital step in building resilient and sustainable supply chains. According to the study, 68% of respondents view cloud technology as critical to improving track-and-trace capabilities. By leveraging the cloud, businesses can implement digital traceability to enhance inventory location accuracy, guarantee on-time delivery, and address sustainability concerns.
Digital traceability also enables companies to ensure sustainable sourcing and protect consumers by tracking products both upstream and downstream. This capability is essential for managing the product lifecycle, meeting regulatory requirements, and addressing growing concerns about sustainability and counterfeiting.
Digital Product Passports: Enhancing Transparency and Sustainability
Digital Product Passports (DPPs) are emerging as a transformative tool for improving supply chain transparency and sustainability. These passports provide detailed information about a product’s origin, composition, sustainability practices, and more. By scanning a product’s digital passport, stakeholders can make informed decisions, ensuring ethical sourcing and adherence to environmental standards. According to Loftware’s research, 54% of professionals believe DPPs already play a significant role in their industries, enhancing supply chain transparency and sustainability. Additionally, 63% of respondents expect DPPs to see wider adoption within the next three years, indicating their growing importance in creating sustainable and efficient supply chains.
The Loftware study underscores the critical need for increased collaboration, digital transformation, and innovation in today’s supply chains. Cloud technology, AI, serialization, and tools like Digital Product Passports are reshaping supply chain operations, enabling companies to navigate disruptions, ensure compliance, and meet consumer demands. As businesses continue to embrace these advancements, the future of global supply chains looks more connected, transparent, and sustainable.
