- 57 percent of supply chain decision makers have started initiatives aimed at reducing waste
- 45 percent of companies that have invested in serialization and traceability have more than 31% revenue growth
A study commissioned by Rockwell Automation by Forrester Consulting found that digital transformation, sustainability and customer experience (CX) improvements are top priorities for business decision makers. According to the research, these goals are the driving force behind the development of new strategies for organizing companies’ supply chain and distribution channels.
Forrester Consulting’s study titled ‘Increase Brand Loyalty and Generate ROI with Improved Traceability‘ was commissioned by Rockwell Automation to better understand the extent to which its own ESG (environmental, social and governance) goals, laws and regulations, and brand awareness impact the company’s interest in supply chain traceability.
While regulatory compliance is also a key driver of new investments in supply chain management, sustainability and customer experience issues are the main drivers of these strategic changes. The fact is that 57% of supply chain decision makers have already implemented initiatives aimed at reducing waste, downtime and in the (supply) chain.
The main findings of the study include:
- Sustainability and visibility are very important for a better customer experience
While some companies are still in the midst of digital transformation, they are accelerating these efforts due to economic dynamics. Companies are focusing on traceability to enable new CX initiatives in sustainability and visibility. 62 percent of respondents said they use traceability data to improve customer experience and product distribution.
- Traceability initiatives are a remedy against counterfeiting and gray market sales.
Nearly half (47%) of respondents say their businesses lose 11% to 60% of sales each year to counterfeit products, and a whopping 89% say gray market sales are a major problem. However, because a clear return on investment cannot be demonstrated, 45% of respondents saw the reason not to implement traceability and serialization, which could have prevented these problems.
- A company’s success depends on supply chain insights, quick recalls and increased brand loyalty.
Seventy-nine percent of respondents say that having full visibility into the location of products in the supply chain is critical to business success, while 78% of respondents say the same about prompt recalls of defective products. In addition, 77% of respondents believe that improving brand loyalty through better quality and reliable distribution of the products is essential.
Counterfeit and unwanted sales
“This research confirms that companies themselves understand that traceability can lead to increased brand loyalty and optimization of their supply chains and their distribution and sales channels. It also helps prevent counterfeiting and unwanted sales through the wrong channels,” said Matt Fordenwalt, vice president and general manager of Systems & Solutions, Rockwell Automation.
Forrester Consulting’s research on behalf of Rockwell Automation is based on a January 2022 survey of 307 global supply chain decision makers asking about their use and interest in traceability and serialization as tools to optimize supply chains. Click here to download a version of the full report.
“Companies that have invested in comprehensive traceability and serialization solutions are already seeing reliable data, cost savings from reduced counterfeiting and gray market sales, and increased customer satisfaction,” says Christine Akselsen, CEO of Kezzler.
Rockwell Automation’s supply chain solutions will be combined with Kezzler’s traceability technologies to help customers connect suppliers, manufacturing, logistics and consumers in one real-time traceability platform. Rockwell Automation and Kezzler have already created traceability solutions for customers such as FrieslandCampina, one of the world’s largest dairy companies.
Note to Press: More information about Rockwell Automation can be found at: https://www.rockwellautomation.com. You can also contact Remco Nieuwenbroek from Wisse Kommunikatie, telephone: 026-4431523 or via e-mail: email@example.com.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is one of the global leaders in industrial automation and digital transformation. The company connects human ingenuity with the possibilities of technology, making the world more productive and sustainable. Based in Milwaukee, Wisconsin, Rockwell Automation has approximately 25,000 employees serving customers in more than 100 countries. Learn more about how we bring the Connected Enterprise to life in industrial companies at www.rockwellautomation.com.
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