Study Highlights AI and Integration Needs
Organisations in Australia and New Zealand are redefining their supply chain strategies, shifting from cost efficiency to resilience, as detailed in a new IDC InfoBrief sponsored by Blue Yonder.
The study, titled 'Integrated Execution: From Sight to Orchestration', reveals a significant shift in supply chain priorities across the Asia-Pacific region, focusing on intelligent orchestration through artificial intelligence and collaboration.
According to IDC, 43 per cent of organisations in the region previously prioritised cost efficiency over resilience, exposing them to disruption risks. Now, 48 per cent emphasise agility to mitigate these risks, while 45 per cent focus on better integration with systems and partners.
Rising Costs and Geopolitical Concerns
The study identifies rising supplier and transport costs as key challenges for 51 per cent of ANZ organisations, alongside concerns about protectionism and tariffs affecting 43 per cent.
Stephanie Krishnan, Associate Vice President at IDC Asia/Pacific, stated, "Supply chains across Asia-Pacific have largely solved the visibility problem, but many organisations still struggle to translate that visibility into action."
Antonio Boccalandro, Asia-Pacific President for Blue Yonder, added, "Organisations need to find ways to become more agile and resilient. Platforms combining AI, real-time data, and multi-enterprise collaboration are essential to respond faster to disruption."
The research highlights AI as a critical capability gap, with 32 per cent of supply chain leaders aiming to address this to enhance resilience. IDC predicts a 60 per cent increase in the importance of agentic AI in supply chain operations over the next three years.
Evolving Supply Chain Dynamics
Organisations are moving beyond simple visibility tools to sophisticated orchestration. This evolution is essential for managing disruptions effectively. IDC reports that 48 per cent of ANZ organisations are prioritising agility, while the need for improved integration with partners is recognised by 45 per cent.
Rising costs and geopolitical uncertainties continue to challenge supply chains. In response, 51 per cent of organisations are seeking ways to manage escalating supplier and transportation costs. Meanwhile, 43 per cent are concerned about the impact of protectionism on supply chain stability.
IDC's Krishnan emphasised that the next phase of transformation will rely on converting visibility into actionable insights. This approach is expected to unlock new opportunities for growth and resilience.
