Improving the customer experience drives new distribution and traceability strategies

A study commissioned by Rockwell Automation by Forrester Consulting showed that improvements in digital transformation, sustainability and customer experience (CX) 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 research, entitled “Increase Brand Loyalty and Generate ROI with Improved Traceability,” was commissioned by Rockwell Automation to better understand the extent to which its environmental, social, and managerial (ESG) goals, laws, regulations, and brand awareness influence business interests in traceability. in the supply chain.

While regulatory compliance is also an important driver for new investment in supply chain management, sustainability and customer experience issues are the key drivers of these strategic changes. The fact is that 57% of the supply chain’s decision makers have already implemented initiatives aimed at reducing waste, downtime and in the (supply) chain.

The main results of the study include:

  • Sustainability and visibility are very important for a better customer experience

While some companies are still in the midst of the digital transformation, they are accelerating these efforts due to economic dynamics. Companies focus on traceability to enable new CX initiatives in sustainability and visibility. 62 percent of respondents said they use traceability data to improve the customer experience and product distribution.

  • Traceability initiatives are a means of counterfeiting and selling on the gray market.

Nearly half (47%) of respondents say that their companies lose 11% to 60% of sales every year due to counterfeit products, and as many as 89% of respondents say that sales on the gray market are a major problem. However, because a clear return on investment cannot be demonstrated, 45% of respondents saw the reason for not implementing traceability and serialization, which could have prevented these problems.

  • A company’s success depends on supply chain insights, rapid recalls, and increased brand loyalty.

Seventy-nine percent of respondents say that it is crucial for the success of the company to have full insight into the placement of products in the supply chain, while 78% of respondents say the same about rapid recalls of defective products. In addition, 77% of respondents believe that improving brand loyalty through better quality and reliable distribution of products is crucial.

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 makers asking about their use and interest in traceability and serialization as tools for optimizing 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 sales in the gray market, and increased customer satisfaction,” said 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 == for customers such as FrieslandCampina, one of the world’s largest dairy companies.

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