Companies are turning
to supply chainorchestration tocombat disruption
and volatility

Overview
Disruption and volatility continue todrive greater supply chain complexity,
putting business operations ­– and yourcompetitive advantage – at risk. Supply chain
professionals, from line level to executives,
across geographies and industries, recognize
they need do more to reduce risk, improve
response times, and broaden their options.
However, a reliance on siloed and legacy
tools and approaches is holding them back.
These include point-solution control towers,
which have carried the promise of end-to-end
integration but have so far fallen far short ofthis objective.

Increasingly, businesses are recognizing
the power of supply chain orchestration tohelp them respond faster to disruption andvolatility while improving their resilience andmaintaining their competitive edge.
Kinaxis commissioned a study with IDC
to survey more than 1,800 supply chain
decision makers and better understand thecurrent state of supply chain orchestration,
uncover what’s driving change, and identify
the key factors that are either helping orhindering adoption.

02What is Supply Chain
Orchestration (SCO)?
SCO is an emerging
sub‑segment of supply chain
management (SCM) whichbrings together the criticalactivities of SCM into a
connected, holistic processthat may or may not still
have multiple technology
systems involved.
To create a harmonizedend-to-end process, SCO
goes beyond point solutions
and leverages AI to gain
comprehensive insights
across the entire supplychain. It supports supply
chain network design,
scenario modeling, andintelligent, integrated
decisions that balance key
objectives, such as finances,sustainability, speed,and resiliency.

DESIGN

RETURNPLAN

ORCHESTRATION

DELIVERSOURCE

MAKE

From a business perspective, SCO aims to keep each part of the supply chain in concert
with the whole. While technology is a significant part of the equation, achieving high levelsof coordination requires going beyond technology to incorporate other critical dimensions
such as business objectives, governance, and strategy.

SCO aims to keep each part of the supply
chain in concert with the whole.”
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FAC I N G TH E FAC T S

Supply chain leaders arestruggling to be agile in theface of disruption
IDC’s survey of more than 1,800 supply
chain decision-makers revealed that many are
struggling to keep their operations agile andadaptable amid an onslaught of disruptions
from geopolitical conflicts, natural disasters,
and other sources of volatility.
While some level of disruption and volatility isinevitable, the faster companies can respondto and mitigate the impacts means reduced
risk and improved resiliency. Yet the vast

Response time by Geography (%)
37342930
2825
21

1716

14
119

Within24 hours
on average

Between1 and 3 dayson average

BetweenBetween3 days and 1 week 1 and 2 weeks
on averageon average� APAC� EMEA10 108More than2 weeks
on average� NAIDC InfoBrief, Sponsored by Kinaxis, Leveraging End-to-End Supply Chain Orchestration:
Deliver Next-Generation Supply Chain Management, Intelligence, and Responsiveness,doc #CA52004924, May 2024

majority of companies simply can’t respondfast enough. Survey results show that mostof supply chains are not capable of responding
to disruption within 24 hours.
While two thirds of companies (67%) aredissatisfied with their ability to respondpromptly to disruption, performance varies
across industries. Industrial respondents
rate their resiliency highest (47%), while
those in retail (29%) and aerospace (27%)
rate themselves lowest. Among industrial
respondents, 28% say they can mount a
response within a day, compared to 15% inlife sciences and 14% in aerospace, the twoslowest verticals.
Overall, survey results indicate that thewidespread frustration with the current
approach to dealing with disruption andvolatility translates to dismal projectionsof future performance. While 63% of
respondents view their supply chain as someform of competitive advantage over the next
12 months, that figure drops to 48% overthe next one to three years. These findings
suggest that supply chain leaders recognizethat there is a significant price to pay for nottaking action to achieve greater coordination
throughout their supply chains, especially ascompetitors continue to invest indigital transformation.

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67%

are dissatisfied
with their ability torespond promptly
to disruption

P O I NT-S O LU TI O N CO NTRO L TOW E R S
A R E N ’ T E N O U G H FO R TO DAY ’ S C H A LLE N G E S

The supply chain isat an inflection point
The tradition of investing by supply chain
function is at a tipping point. Historically,businesses invested in control towers tocreate better visibility, reduce risk, and boost
resilience. The survey results reveal thatcompanies in most industries tend to leveragecontrol towers across siloed functions,with separate instances for supply chain
planning, supplier collaboration, production
planning and scheduling, and transportation
management, among other use cases.

As a result, control towers are creating small
pockets of visibility, but they aren’t helping
businesses break down functional silos –and, as a result, they aren’t enabling theevolution to full supply chain orchestration.
Moreover, according to the survey, two thirdsof companies lack full integration acrosstheir end-to-end, multi-business value chain,and 36% can’t claim integration across allenterprise systems.
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Supply chain leaders
are optimistic
about supply chainorchestration

Despite the significant challenges they arefacing, and the limitations of their legacy
supply chain tools and processes, survey
respondents are optimistic about the potential
for supply chain orchestration solutions toturn the tide. Nearly all companies (97%) saythat better orchestration tools would have amodest-to-significant impact on supply chain
performance. Other key findings suggestthat companies are gradually heading further
down the supply chain orchestration
maturity path, including:97%

of companies say that betterorchestration tools would
have a modest-to-significant
impact on supply chain
performance25%of respondents plan tomove to new technologies
in the next year to improve
resilience

33%want supply chainorchestration platforms
that offer AI capabilities,including generative AI

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For your company, what would be the key components of supply chain orchestration?

33%

Supply chain planning

37%
33%
34%

Production planning / scheduling

36%
28%
34%

Logistics and global trade

35%
27%
32%
31%

Collaboration with suppliers (upstream)

33%
31%
32%

Collaboration with customers (downstream)

33%
29%

Control tower (connectivity and visibility)

34%
28%

� APAC� EMEA� NAIDC InfoBrief, Sponsored by Kinaxis, Leveraging End-to-End Supply Chain Orchestration: Deliver Next-Generation Supply Chain Management, Intelligence,and Responsiveness, doc #CA52004924, May 2024

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Identifying the right vendor
solution is the biggest
roadblock to adoption
The survey also uncovered the key
reasons that the adoption of supply chainorchestration is lagging. The biggest roadblock
to adopt identified by respondents is not being
able to find the right vendor solution. Other
reasons for not adopting a solution include
having too many priorities and a lackof budget.

However, a holistic solution is not enough– supply chain orchestration also requires ashift in mindset and approach. An evolution
in technology alone can’t succeed without
an evolution in process and techniquethat aligns toward common business andoperational goals.

What were the principal reasons you decided not to adopt a supply chain orchestration application?

38%
38%

Can’t ﬁnd the right vendor solution

34%
21%

Too many other priorities

25%
16%
19%

Lack of budget

19%
18%
20%

Do not see the beneﬁt – our current supply chain IT tools are too old/inﬂexible

18%
13%

We lack the skills to implement

15%
26%
13%
18%

Do not see the beneﬁt – our business/industry isn’t that complicated

18%
12%
12%

We don’t really understand it

24%
12%
16%

Do not see the beneﬁt – our current tools suﬃce

� APAC15%� EMEA� NA

IDC InfoBrief, Sponsored by Kinaxis, Leveraging End-to-End Supply Chain Orchestration: Deliver Next-Generation Supply Chain Management, Intelligence,and Responsiveness, doc #CA52004924, May 2024

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Why Kinaxis is the vendorof choice for supply chainorchestration
Companies across all industries are looking
to accelerate their advancement along thesupply chain orchestration maturity scale,so they are better equipped to handle
escalating customer demands, take advantageof technology advancements, and respondquickly and effectively to disruptions andvolatility. Kinaxis® is the only platform thatenables supply chain orchestration acrossplanning and execution to keep supply chains
instantly and continuously in sync.
In an increasingly demanding and disruptive
world, Kinaxis enables businesses to drive
agility, transparency, intelligence, and trust
across every supply chain function andinternal and external contributors.

Kinaxis supply chain orchestration
allows businesses to eliminate siloedprocesses, outdated techniques, anddisconnected technology in order to:
Easily meet customer demands
and corporate goals while
minimizing impact to the planet
Proactively get ahead of risks
or opportunities with complete
understanding of end-to-end
business impact
Continuously increase overall
supply chain efficiency andteam productivity

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Download the IDC InfoBrief toread the complete survey results
Download the IDC InfoBrief on Supply Chain
Orchestration to access the complete survey
results and get the latest insights into:• Key roadmap priorities for supply
chain orchestration• IDC FutureScape Predictions for
supply chain orchestration• The stages on the supply chainorchestration maturity journey• Key takeaways for decision makers,
including critical enablers and essential
guidance for implementing supply
chain orchestration

Download

About Kinaxis Inc.
Everyday volatility and uncertainty demand quick action. Kinaxis delivers theagility to make fast, confident decisions across integrated business planningand the digital supply chain. People can plan better, live better and change
the world. Trusted by innovative brands, we combine human intelligencewith AI and concurrent planning to help companies plan for any future,monitor risks and opportunities and respond at the pace of change. Poweredby an extensible, cloud-based platform, Kinaxis delivers industry-provenapplications so everyone can know sooner, act faster and remove waste.
Don’t believe us? Ask us to prove it. Learn more at Kinaxis.com.
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