Supply Chain Statistics – 18 Key Figures of 2022
Just like procurement analytics, supply chain statistics can be a long and dragging subject. However, it is an important factor for the success of your procurement process. It’s only right to talk about it with this article.
We will discuss further the importance of supply chain statistics for procurement managers all over the world. We’ll also include 18 key figures for supply chain managers to look at for this year 2022.
When you’re done reading about this article, you should already be an expert in supply chain statistics.
Supply Chain Statistics – What the Numbers Actually Mean
Despite the COVID 19 pandemic still rearing its ugly head from time to time, procurement remains strong and the supply chain industry is benefitted from it as a result. This can be seen with how many procurement teams still getting hired and paid to do the sourcing of needed supplies for companies that need them.
Therefore, one can safely say that supply chain statistics will remain positive all throughout the year. Some of the most recent statistics reveal just how the supply chain is keeping up, despite the economic crunch:
Automation and AI
As noted with Dexterity, companies that provide AI and automation solutions for supply chain management are only going to continue to grow. In addition to the warehouse solutions provided by Dexterity, automation can be deployed for supplier management and AI can actively detect and respond to changes in demand as they occur.
Automation and AI can increase end-to-end visibility and transparency of an entire supply chain, which allows companies to better mitigate potential disruptions, improving supply chain performance. The increase in efficiency provided by increased automation is likely to be a key driver in revenue growth. This will occur alongside and help accelerate their human comrades being able to focus on more cognitively demanding tasks.
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Supply chains are highly susceptible to security risks because there are so many elements that go into securing a supply chain. For example, securing a supply chain involves coordinating physical and cyber security. Within cybersecurity, there are a variety of risks including ransomware attacks and data breaches. It is not surprising then that security is one of the biggest challenges faced by global supply chains.
As cyber-attacks on supply chains continue to rise, expect security to remain a hot topic as it pertains to the supply chain. Products that offer defense against these attacks are likely to see high adoption rates as organizations begin to prioritize supply chain security.
Visibility and Transparency
Visibility into all parts of the supply chain is vital. Supply chains are continuing to digitize, and as this occurs, it is easier for organizations to seek insights related to visibility and transparency in all aspects of their supply chains.
More visibility makes it easier to avoid minor problems, such as delivery delays or order errors, which improves customer service. This transparency also improves the time to resolution for larger issues as they arise.
The 18 Key Supply Chain Statistics for 2022
1. The global supply chain market is expected to experience a CAGR of 11.2% from 2020 to 2027. That means a market value increase from $15.85 billion in 2019 to $37.41billion in 2027. And, this number has continued to hold, despite the pandemic.
2. The Transportation Management System (TMS) is expected to have a CAGR of 11.7% from 2021 to 2028. That’s an increase from a market value of $120.70 billion in 2021 to a predicted $261.89 billion in 2028.
3. The Global Logistics Automation Market has the highest CAGR of any supply chain market, at a predicted rate of 12.4%. As of 2020, the Global Logistics Automation Market size was $50.9 billion. However, this size is expected to experience a CAGR of 12.4%, meaning it may grow to $82.3 billion by 2026.
4. Only 22% of companies have a proactive supply chain network. Proactive supply chain management means that the end-user is always able to address shifts in supply or demand before they become critical. The fact that fewer than a quarter of companies operate this way was exposed as a big vulnerability during the pandemic.
5. 43% of small businesses don’t track their inventory. And 21% report that they “don’t have inventory.” However, of those who do track inventory, the most common method is inventory through accounting software like Quickbooks, at 24% of small business owners.
6. 67.4% of supply chain managers use Excel spreadsheets as a management tool. And this number only rises with experience, as around half of new investors use it, while over 75% of late majority managers do.
7. On average, U.S. retail operations have a supply chain accuracy of only 63%. This can result in significant delays and re-stocking issues. For example, 34% of businesses have shipped an order late due to selling a product that wasn’t in stock.
8. Due to the COVID-19 pandemic, the estimated value for out-of-stock items in 2020 was $1.14 trillion. Which is a stark contrast to the $626 billion of overstock items, meaning out-of-stock items were double the value. This same trend was especially prominent in grocery stores, where out-of-stock items were worth five times more than overstock items.
9. Globally, 12% of retailers reported heavy supply chain disruptions due to COVID-19. This is a surprisingly low number, as 32% of global retailers reported that they experienced little disruption. However, maintaining stock items was a much bigger issue, as 28% of respondents underwent shortages and out-of-stocks and tried to find alternative sourcing options.
10. Between 2019-2020, overall supply chain disruptions increased by 14%. In 2019, there was an average of 3,700 supply chain disruptors. However, this number increased to 4,200 in 2020.
11. Supply chain disruptions can cause a massive 62% loss in finances. And other aspects of business that can be hit hard by supply chain disruptions include logistics and reputation, which see an average 54% hit.
12. The #1 cause of global supply chain disruptions is mergers and acquisitions at 66%. And other common causes of supply chain disruption include extreme weather (41%), factory fire (37%), and business sales (33%).
13. The #1 cause of U.S. supply chain disruptions is unplanned IT outages at 68%. And other common causes of supply chain disruption include adverse weather (62%), loss of talent (51%), cyber-attacks (50%), and fire (44%).
14. It is estimated that the supply chain management industry will reach a valuation of $8.95 billion by 2024.
15. Of those in the supply chain management industry, 45.1% said that they were investing in warehouse management software and that automation was a key feature.
16. 58.6% of retail supply chain executives wanted to invest more in omnichannel fulfillment, s a result of supply chain disruption.
17. 42% of supply management organizations stated that increased cost to supply management due to the Covid-19 pandemic was one of their top concerns of 2021. 43% of those in the same survey listed limited availability of raw materials or supply as a top concern.
18. There will be 4 times as many cyberattacks on supply chain software in 2021 than there were in 2022.
What are supply chain statistics?
Supply chain statistics are numbers displaying interesting facts and data about the status of the world supply chain.
Why is the supply chain important?
The supply chain is important because it determines how many products a company can manufacture.
How can one get supply chain statistics?
Data on the supply chain can be gathered with the use of procurement programs that collect and analyze data.
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