Press release

New JDA and KPMG Survey Says Artificial Intelligence is the Most Impactful Supply Chain Technology for CXOs in 2019

Sponsored by Businesswire

Gartner Supply Chain Executive Conference The second
annual joint survey of supply chain executives from JDA
Software, Inc.
and KPMG
details the key innovation investments across retail,
manufacturing and logistics in 2019. The JDA
& KPMG Digital Supply Chain Investment Survey
, conducted by
Incisiv reveals that end-to-end visibility continues to be the number
one priority for the second consecutive year, driven by artificial
intelligence (AI), machine learning (ML) and cognitive analytics.

AI/ML and Cognitive Analytics Viewed as Most impactful Driver Towards
Enabling End-to-End Visibility

The new survey reveals that supply chain traceability and visibility
continues to be the highest investment area for supply chain executives
(77%).To achieve this level of visibility, supply chain executives plan
to deploy or test cognitive analytics (82%), AI/ML (62%) or digital
control tower (55%) technology in the next 24 months. Together, AI/ML
technologies are viewed as the most impactful technology this year (80%)
given its wide applicability and promise of addressing complex business
problems across the value chain. Cognitive/predictive analytics was also
ranked highly, as 75% of respondents believe it will have a disruptive
impact in the year ahead. Overall, since last year, AI has shifted into
the high impact/high planned adoption quadrant for surveyed executives,
confirming the importance of the impact this technology will have on
supply chains in the year ahead.

“A truly autonomous supply chain requires predictive end-to-end
visibility and these survey results echo our vision to make this a
reality for our customers,” said Fred Baumann, group vice president,
Industry Strategies, JDA. “Supply chain executives must invest in the
critical technology elements such as AI/ML that will simultaneously
unlock the value from customer data while shedding light on disruptions
before they occur, recommending prescriptive actions for a smarter, more
agile supply chain.”

Drilling down even further into how impactful AI/ML technologies are,
survey respondents found the highest value use case to be the ability to
optimize inventory (51%) followed by predictive distribution (45%) and
optimizing distribution networks (42%) because companies need the
ability to fulfil from anywhere, profitably. Cross-industry, the highest
value use cases for AI were identified by respondents to be:

  • Increasing inventory and pricing accuracy for Retail
  • Improving demand forecasting for Manufacturing
  • Optimizing distribution network for Logistics

“As the study found, supply chain visibility continues to be the highest
priority for executives, and in just a year, plans to invest in
cognitive and predictive analytics have skyrocketed,” said Brian
Higgins, KPMG U.S. Advisory principal and the firm’s Procurement and
Product Operations leader. “Investments in these technologies, as well
as AI and ML and digital control tower technology, over the next couple
of years will offer the most impact for gleaning and leveraging data
insights. This holds the potential to truly change the game for
enterprise supply chain execs as they can track conditions in real-time,
detecting issues and addressing them proactively for optimization.”

Investment Challenges and Innovation Roadblocks

Though speed-to-market was ranked as a top investment driver for 69% of
respondents, resistance to change is the number one challenge to driving
innovation for 42% of respondents. The inability to assess the potential
of new technology has risen over the last year, indicating a disconnect
between technology hype and technology value. Executives struggle to
visualize and quantify the measurable impact that a technology will have
on their business. To address this, executives must underscore the
measurable impact that AI/ML and cognitive analytics will have, as a
true step change towards the performance of global supply chains.
Providers that have a proven value delivery track record in the AI/ML
space will hold a competitive advantage overcoming this challenge.

Another way executives are driving innovation is through cloud
technologies. Cloud adoption is viewed as enabling speed-to-market by
respondents. Sixty-four percent believe cloud helps them quickly adapt
to business needs and drive business agility 2X faster than any other

“Competing in a world of infinite customer choice and increasing
distribution complexity will be impossible for firms that don’t upgrade
their supply chain innovation and agility quotient. It isn’t easy,
executives are facing technology hype-cycle fatigue because the
inability to map technologies to specific, practical and impactful
use-cases continues to be an innovation impediment,” said Gaurav Pant,
Chief Insights Officer at Incisiv. “Leveraging advanced analytics to
focus on specific use-cases, using cloud-based software to improve
business agility and investing in the right talent are core ingredients
to what will move the needle on innovation.”

JDA and KPMG are at the Gartner Supply Chain Executive Conference in
Phoenix, this week, May 13-16, in booth #313 (JDA) and booth #325 (KPMG)
where attendees can access the 2019 Digital Supply Chain Investment
Survey results. JDA will also be showcasing its moonshot – the
Autonomous Supply Chain!

Survey Methodology

Incisiv collected responses from 93 supply chain executives in the
retail, manufacturing and logistics industries in February 2019 to
determine the findings. 58% of respondents are from companies that are
worth more than $1 billion and 74% of respondents decide or directly
influence supply chain purchase decisions.

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About JDA Software, Inc.

JDA Software is the proven leader in artificial intelligence and machine
learning (AI/ML)-driven supply chain and retail solutions for 4,000 of
the world’s leading retail, manufacturing and logistics companies. JDA
enables an Autonomous Supply Chain™ by connecting its cognitive SaaS
solutions from end-to-end – across planning, execution and delivery –
with a broad partner ecosystem, empowering customers to better predict
and shape demand, transform their product delivery and deliver
outstanding customer experiences. JDA’s world-class client brands
include 75 of the top 100 retailers, 77 of the top 100 consumer goods
companies, and 8 of the top 10 global 3PLs. Running JDA, you can plan
to deliver

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