Podcast “Getting the maximum ROI from a supply chain technology purchase”

Investing in supply chain technology is no longer a luxury – it’s a necessity for businesses striving to stay competitive in today’s volatile markets. Despite the significant potential for improvement, many organizations struggle to realize the anticipated benefits. In a recent SupplyChainBrain podcast, Jeffrey Luft, Portfolio Development Executive at Siemens Digital Logistics, shared invaluable insights on how businesses can maximize returns on their supply chain technology investments.

The business imperative for supply chain technology

Supply chain resilience has become a cornerstone of modern business strategy. Whether it’s navigating disruptions caused by global pandemics, geopolitical tensions, or climate change, technology provides the tools to maintain stability and meet customer expectations.

However, the numbers tell a cautionary tale. Luft references two alarming statistics: PWC reports that 83% of companies fail to achieve expected outcomes from technology investments, while Gartner finds that 76% of logistics transformation projects never fully succeed. Why? Many organizations underestimate the complexity of aligning new tools with their specific business needs or fail to secure organizational buy-in. Luft emphasizes that without a clear strategy, even the most advanced technology can fall short of its promise.

Laying the foundation for a successful investment

Justifying an investment in supply chain technology requires more than enthusiasm – it demands a data-driven, compelling case that resonates across stakeholders. Luft advises companies to begin by analyzing current gaps and inefficiencies.

For example, many businesses still depend on manual tools like spreadsheets for critical processes such as transportation management. Quantifying the tangible costs of delays, inefficiencies, or customer dissatisfaction can build a strong argument for change. Luft underscores that technology should be seen as an enabler of both efficiency and resilience, ensuring businesses are better equipped to handle future disruptions.

Breaking through silos and building consensus

One of the greatest challenges in implementing supply chain technology is overcoming organizational silos. Luft stresses the importance of engaging key stakeholders early in the process, including:

• C-Suite Leaders: CFOs play a critical role in linking technology investments to measurable financial outcomes.
• IT Teams: CIOs must ensure seamless integration of new solutions with existing systems, balancing competing priorities.
• Operational Teams: End-users offer valuable insights into broken processes and validate that new technology addresses real-world challenges.

Cross-functional collaboration isn’t just helpful – it’s essential for ensuring that new technologies align with broader business objectives and achieve lasting success.

Ensuring ROI during and after implementation

Securing buy-in for a technology investment is just the beginning. Luft highlights several best practices to ensure strong ROI during and after implementation:

• Monitor Progress: Continuously evaluate whether the system is addressing the problems it was designed to solve.
• Engage Stakeholders: Keep open communication channels with users to refine processes and address any challenges.
• Choose Trusted Partners: Collaborate with vendors and integrators with proven track records to accelerate implementation and reduce risks.

The rise of cloud-based systems has made sophisticated supply chain tools more accessible, especially for smaller businesses. However, achieving success ultimately depends on disciplined execution and alignment with strategic goals.

Explore the full discussion

The podcast delves deeper into overcoming resistance, choosing the right technology partner, and ensuring long-term success with supply chain solutions. Listen to the full episode and discover strategies to turn your supply chain technology investments into transformative success stories.

For more actionable insights, download Siemens Digital Logistics’ white paper “The Benefits of Transparency”, which offers practical action items and real-world use cases. Learn how to create the perfect synergy between strategic goals, network structure, costs, service objectives, expenses, and revenues.