Data access issues cripple Australian supply chains, Appian finds
A new study by Appian has revealed that Australian supply chains are significantly hindered by data accessibility issues. 66% of surveyed employees work with incomplete or inaccessible data. The study surveyed 300 supply chain workers across the shipping, distribution, and transportation sectors, uncovering persistent data-related obstacles despite ongoing digital advancements in the industry.
The lack of unified data substantially affects inbound visibility, creating difficulties in predicting inventory arrival at distribution centres or factories. Additionally, 41% of supply chain professionals reported that poor data accessibility compromises their ability to maintain operational efficiency. Essential inventory management tasks were also impacted, with 31% of the workforce experiencing difficulties in completing these tasks due to data issues.
Luke Thomas, Area Vice President for Asia Pacific and Japan at Appian, remarked on the severity of the problem. "Australian supply chains have a data problem. They rely on digital processes and accurate data to function yet are asking their workers to operate with incomplete or inadequate information to manage complex, often disconnected operations across critical areas such as logistics management, shipment tracking, and schedule coordination," he said.
The study indicated that fragmented, inconsistent, or unavailable data adversely impacts key supply chain functions, including inbound visibility, efficient staffing, and warehouse operations. Despite 78% of organisations adopting new digital initiatives within the last five years, data usability has not kept pace. About 43% of workers identified data accessibility as their primary challenge, while 36% expressed concerns over data security and the protection of sensitive private data. Another significant portion cited data overload, where abundant data is available but cannot be effectively analysed and used.
Gordon Maddock, Regional Vice President for Broad Markets at Appian, commented on the risks associated with inaccessible data. "When information is inaccessible or unable to be analysed accurately, it complicates decision-making processes and heightens the risk of operational errors or ongoing inefficiencies across supply chain operations," he explained. "Unclear data governance can also inadvertently provide access points for unauthorised users, posing a threat to both operational integrity and confidential information."
To address these challenges, Appian advocates for the strategic implementation of a modern process automation platform enhanced by a data fabric. Maddock elaborated, "A data fabric is an architectural layer and toolkit that seamlessly integrates data across disparate systems, whether it's on-premises or in the cloud. By creating a centralised, unified view, it substantially enhances both security and operational efficiency. This integration is crucial for supply chain operations, allowing for precise control over who can view, update, and delete data, and ensuring that every piece of information is accurately accounted for and securely managed, whilst enabling action to be taken on the data."
The research also highlighted that poor data accessibility impacts both customer and employee experiences. Approximately 39% of workers encountered obstacles in meeting customer service expectations due to inadequate data access. Moreover, 33% of those surveyed reported that data-related challenges adversely affect the employee experience. This dissatisfaction poses problems for Australian supply chain organisations, which face skilled worker shortages and need to maintain a satisfied and efficient workforce to prevent increased turnover and knowledge loss.
The lack of unified and visible data needed to forecast productivity fluctuations renders proactive staffing decisions difficult. This leads to inefficient labour management, affecting the overall experience of both staff and the service output for their customers.
Despite growing digital transformation strategies, the study found that the integration of Artificial Intelligence (AI) in supply chain operations remains low, with only 3.67% of workers regularly using AI-powered systems. Thomas believes there are key opportunities for enhancing supply chain efficiency and responsiveness through advanced technologies. "Embracing AI and more sophisticated data management tools can revolutionise the way we approach supply chain operations. Connecting and streamlining access to data can transform challenges into opportunities, fostering a more responsive and resilient supply chain ecosystem," he concluded.
