Loftware’s survey shows rise of technology-infused supply chains

The global survey, which draws on insights from over 300 labeling, packaging, and supply chain professionals across industries in 55 countries, found that investing in cutting-edge technologies such as cloud computing, AI, and IoT solutions is no longer a tactical necessity but an enabler for business growth and agile supply chain operations.

This shift in prioritization has primarily been driven by ongoing supply chain disruption, heightened consumer expectations, and growing sustainability demands.

‘As companies plan for 2024 and beyond, the combination of geopolitical uncertainties, climate instability, and the threat of recession continues to impact companies of all sizes,’ said Josh Roffman, executive vice president of marketing at Loftware. ‘Organizations are grappling with disruptions that extend far beyond the traditional scopes, requiring a strategic recalibration to weather the storm and emerge stronger in the face of adversity.

‘With this in mind, a commitment to bolstering digital transformation strategies through investment in innovative technologies will be critical to streamline operations, drive growth, and increase profitability.’

Gartner, a leading technology analyst firm, supports this notion and reports that global end-user spending on public cloud services is forecast to grow 20.4 percent to USD 678.8 billion in 2024, up from USD 563.6 billion in 2023.

The Loftware report also revealed that sustainability had become a crucial strategic and operational priority for organizations of all sizes around the globe.

Of those surveyed by Loftware, 78 per cent said they have already adopted sustainability initiatives across their organizations due to increased regulations and shifting consumer preferences. Seventy-seven percent of respondents believe stricter regulations and compliance requirements are pushing businesses to adopt sustainability practices, while 82 percent reported that consumer preferences for sustainable products are driving this approach.

Facilitating transparency is a vital step in creating resilient supply chains and fostering better sustainability practices, so it’s no surprise that 79 percent of respondents flagged global traceability as a priority for their company – an increase from 70 percent just 12 months ago.

Using cloud technology, digital traceability helps companies to ensure sustainable sourcing, protect consumers, streamline the location of inventory, guarantee on-time delivery to market, and address the growing issue of counterfeiting.

Indeed, 48 percent of those surveyed believe the inability to effectively manage recalls is the biggest risk of being unable to track products through the supply chain. This compares to 33 percent five years ago.

As highlighted by Loftware’s report, Industry 4.0 will continue to impact companies and their manufacturing operations.

Organizations operating across a range of industries, from automotive, electronics, and manufacturing to consumer products and life sciences, are embracing automation and standardized solutions which help them meet their unique requirements.

This is especially true for mission-critical business processes such as cloud labeling and printing, with 91 percent of respondents reporting seeing an advantage of using a single platform to support thermal transfer labeling and direct marking and coding.

For more information about the trends identified by Loftware, access the full report and sign up for the 2024 Top 5 Trends in Labeling & Packaging Artwork webinar.