The Impact of Automation on Supply Chain Processes

The Challenges and Benefits of Automation in the Supplier Market: Highlights from the Jaggaer Study

According to a new study, only a small fraction of suppliers, specifically 9%, are benefitting from extensive automation in their supply chain processes. This leaves over 90% of suppliers struggling with cumbersome processes. The disrupted global supply chains continue to negatively impact B2B commerce. A recently published report, the 2022 State of the Supply Chain, reveals that more than 80% of suppliers do not have access to fully automated systems for processing invoices or requests for proposals submitted by existing or potential customers. However, 43% of suppliers believe that automating the management of RFPs and invoices could offer significant benefits.

The report warns that the lack of widespread automation on the supply side could impede progress and inhibit growth and performance. Georg Roesch, the vice president of direct procurement strategy at Jaggaer, which published the report, stresses that true supply chain transformation requires a frictionless commerce experience for both buyers and suppliers.

The study surveyed 47 respondents throughout May and June and found that 73% of suppliers are facing major challenges due to shortages of products and materials. Inflation, strained production capacity, and geopolitical risks are other significant challenges. The study reveals that 59% of suppliers believe that having a central commerce hub providing access to buyers is vital to improving their business. Benchmarking data for competitive comparisons and automated workflows to enhance collaboration also received mention from 57% and 48% of suppliers, respectively.

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