Asia-Pacific enterprises are the most affected by counterfeiting globally – 70% reported 11-60% loss of sales income each year Eighty-three percent of supply chain professionals believe proper traceability/serialization of their company’s products is very or extremely important to staying competitive Forty-five percent of companies that have invested in serialization methods have seen over 31% increase in sales due to serialization
SINGAPORE, Aug. 15, 2022 /PRNewswire/ — Rockwell Automation, the world’s largest company dedicated to industrial automation and digital transformation, finds that digital transformation, sustainability initiatives, and customer experience (CX) improvements are among the top priorities driving the development of new corporate supply chain strategies, according to a new study conducted by Forrester Consulting.
The study, “Increase Brand Loyalty and Generate ROI with Improved Traceability,” was commissioned by Rockwell Automation to understand the degree to which environmental, social, and governance (ESG) commitments, external regulatory demands, and brand reputation drive private-sector interest in supply chain traceability solutions.
According to the survey, Asia-Pacific companies (62%) are most focused on the digital transformation of their supply chain, and 59% said their company wants to implement or improve sustainability initiatives.
While compliance remains a key driver of new investments in supply chain management, demands related to sustainability and customer experience have propelled these strategic shifts. In fact, 57% of supply chain decision makers have already implemented or are expanding initiatives that will reduce waste within their supply chain.
Key findings of the survey include:
Sustainability and visibility lead the charge for better customer experience.
While some companies are knee deep in their digital transformation efforts, those types of efforts are evolving for the current landscape. Companies are turning to traceability to enable new sustainability and visibility related CX initiatives. Eighty-three percent of respondents said proper traceability and serialization of their company’s products is very or extremely important to staying competitive in the market. Traceability initiatives remedy counterfeiting and diversion.
When it comes to counterfeiting, Asia-Pacific companies are most affected, with 70% of respondents from the region reporting that their company annually loses 11% to 60% of sales income. This compared to 54% of respondents from companies in EMEA and 44% from North America that reported similar losses. Additionally, 89% of respondents globally said grey market diversion is problematic for them. The enterprises that have invested in methods of serialization as a solution have benefited from a boost in business; nearly half (45%) of respondents said their company has seen a rise of over 31% in sales income, attributed directly to serialization. An enterprise’s success hinges on full supply chain visibility, swift product recalls, and better brand loyalty.
Seventy-nine percent of respondents said full visibility into where products are in the supply chain are critical or important to their company’s success, while 78% said the same for the ability to quickly recall the right products. In addition, 77% cited brand loyalty improvement through better product management.
“This study confirms that enterprises are experiencing how traceability can nurture brand loyalty and optimize their supply chains, as well as mitigate the impact of counterfeits in key markets, among other priorities,” said Matt Fordenwalt, vice president and general manager, 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 about their use of or interest in traceability and serialization solutions to optimize their supply chain. To download a copy of the full report, click here.
“While companies are already seeing some success from serialization initiatives, those that invest in more comprehensive traceability solutions often see improved data ownership, cost savings from reduced counterfeiting and grey market diversion, and higher customer satisfaction,” said Christine Akselsen, CEO of Kezzler.
Rockwell Automation’s supply chain capabilities combined with Kezzler’s cloud-based traceability technologies help customers connect suppliers, manufacturing, logistics, and consumers into one real-time traceability platform. Rockwell and Kezzler have already created traceability solutions for customers like FrieslandCampina, one of the world’s largest dairy companies.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK) is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 25,000 problem solvers dedicated to our customers in more than 100 countries. To learn more about how we are bringing the Connected Enterprise® to life across industrial enterprises, visit www.rockwellautomation.com.