Supply Chains have Made Big Strides over the Past Couple of Years but Face Additional Headwinds in the Form of Economic Recession and Shrinking Demand, According to ALM’s New Pacesetter Report
A new report on Supply Chains finds that innovators among professional services providers must balance cost reduction with helping clients transform their supply chains into value-creation enablers
New York, NY – February 15, 2023–A new report from Law.com Compass Pacesetter Research (previously known as ALM Intelligence Pacesetter Research) finds that clients in 2023 are struggling to rationalize the (involuntary) investments they’ve been making in their supply chains over the past two years. The findings also conclude that the focus is on learning to integrate and manage the many interconnected components. Political and economic headwinds clients face in 2023 further complicate the challenge of rationalizing investments. These are just a few factors that lead to clients needing help with active, constant management of all the moving components of the supply chain.
The emphasis on service delivery has moved from visibility and connectivity to flexibility and end-to-end relationship management. This evolution, in turn, has injected an essential strategic element into professional services providers’ approach to supply chain, favoring those providers best able to align strategy for clients at both the macro and micro levels in supply chain management (SCM).
“Having just gone through the dramatic experience of the pandemic, it is difficult to appreciate just how transformational 2023’s unique challenges are for supply chains,” said Director of Pacesetter Research Tomek Jankowski. “Today’s Innovators are those professional services providers best able to align – at a granular level – supply chain strategy with client organizations’ enterprise strategy.”
Key trends identified in this research include:
- Supply chain management is one of the primary areas of investment in 2023 for many professional services providers, ranking with M&A and restructuring services in terms of resources
- Skilled talent scarcity continues to be the leading impediment to achieving supply chain goals
- Global trade is undergoing a profound reorientation with organizations seeking to simplify and localize/regionalize their supply chain networks, a trend accelerated by geopolitical volatility
- Evolving client supply chain strategies and market volatility (leading to significant changes in production strategies) are also disrupting traditional supplier and market relationships, further contributing to uncertainty
- Investments in digital technologies in supply chain management have accelerated, but with different players (both internal and external partners) at varying levels of digital maturity, misalignment between data and technology environments has become a severe impediment to achieving key supply chain goals
- Innovators have focused on helping clients transform their supply chain networks into value creation centers by integrating supply chain strategy with enterprise strategy, balancing in the process cost, agility, resiliency, and sustainability
Clients have come to realize through the experience of the pandemic that supply chains are an essential part of any value creation story. This realization means supply chain management has implications for procurement and product delivery and overall client operational strategy, finance, tax, talent, technology, and market partnership strategies – ultimately shaping the optimal customer experience. Innovators in 2023 approach supply chain management seeking to foster greater collaboration, connectivity, and visibility – what is being called “radical transparency” – across client organizations despite the short-term cost challenges.
In Law.com Compass Pacesetter Research: Supply Chain 2023-2024, the Pacesetter Advisory Council assessed dozens of providers to arrive at twenty-three Innovators recognized for their ability to help clients navigate an increasingly complex market environment. Additionally, the research and analysis provide insights into the competitive dynamics and service delivery trends driving convergence across legal, management consulting, multi-service, and technology providers.
In this report, Law.com Compass Pacesetter Research evaluates the innovation in the reputational risk management capabilities and offerings of the following providers: Accenture, AlixPartners, Alvarez & Marsal, Bain & Company, Boston Consulting Group, Camelot, Deloitte, DLA Piper, EY, FTI Consulting, Genpact, Hogan Lovells, IBM, Kearney, KPMG, Linklaters, Mayer Brown, McKinsey & Company, North Highland, Oliver Wyman, PA Consulting, PwC, SupplHi, and Thompson Hine.
Law.com Compass Pacesetter Research provides independent, objective research to providers and buyers of professional services and practical insights that inform decision-making processes.
To learn more about the research or to obtain the full version of the Supply Chain report, go to: https://www.alm.com/intelligence/pacesetter-research-2/supply-chain/.
For more information or to obtain the full version of the ALM Intelligence Pacesetter Research series, visit: https://www.alm.com/intelligence/pacesetter-research/ .
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