Global supply chains are under pressure. Up against the triple squeeze of supply chain constraints, labor shortages, and inflation, manufacturers need the frictionless connectivity in composable work environments that the new type of standardized, modular digital platforms brings, as never before.
This means IT departments will be central to improved supply chain performance, employee productivity, and cost savings by using improved data visualizations and simulations to enable augmented decision-making, Gartner predicts in a new 2023 report.
"Manufacturers are pressured to become more resilient across the organization and supply chain. High energy costs, component shortages, and resource issues are already getting in the way of a rapid response to market volatility."
This volatility is what Gartner defines as the “triple squeeze” — global supply chain constraints, shortages in the labor market, and inflation — all of which have a massive impact on manufacturers.
But here’s the good news. We believe this impact on manufacturers can be countered by leveraging the frictionless connectivity, advanced data visualizations, and real-world simulations integrated into modern digital platforms such as OMP.
Manufacturers can now go way beyond just making decisions about day-to-day operational efficiency. For Gartner, the key decisions — enabled by the improved type of supply chain platforms — must now be more about outsourcing, regionalization and reallocation of resources, and building smart factories.
But, according to Gartner, “if CIOs fail to work with business functions on strategies and concrete plans to cope with the triple squeeze, their organization’s profit margin is likely to decrease.”
Looking for strategies to handle the triple squeeze and build resilience into your supply chain?
This report isn't valid anymore. Read the "Gartner research: acquire and mature a digital supply chain twin" report.
Gartner®, Will Require Manufacturing CIOs to Gain Visibility by 2026, Alexander Hoeppe, Bettina Tratz-Ryan, Christian Titze, Simon Jacobson, Sam New, Lillian Oyen-Ustad, Rick Franzosa, Sohard Aggarwal, December 19, 2022
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