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Europe’s Demand for Digital Supply Chain Services Surging

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Information Services Group (ISG) reports a significant increase in European demand for digital supply chain services over the past 24 months. Service providers are adapting their approaches based on clients' digital maturity levels, from basic process standardization to advanced AI-driven solutions. The market emphasis in Europe differs from the U.S., with greater focus on digitalization, sustainability, risk management, regulatory compliance, and resilience.

The transformation is driven by Industry 4.0, political unrest, and regulations. Key technologies include predictive analytics, automation, AI, IoT, digital twins, and blockchain. Generative AI is gaining traction in procurement, supply chain execution, and after-sales services. The report evaluates 33 providers across four quadrants, with Accenture and Capgemini leading in all categories.

Information Services Group (ISG) riporta un significativo aumento della domanda europea per i servizi di supply chain digitali negli ultimi 24 mesi. I fornitori di servizi stanno adattando i loro approcci in base ai livelli di maturità digitale dei clienti, passando dalla standardizzazione dei processi di base a soluzioni avanzate guidate dall'IA. L'enfasi del mercato in Europa differisce da quella degli Stati Uniti, con una maggiore attenzione alla digitalizzazione, sostenibilità, gestione dei rischi, conformità normativa e resilienza.

La trasformazione è guidata dall'Industria 4.0, instabilità politica e normative. Le tecnologie chiave includono analisi predittiva, automazione, IA, IoT, gemelli digitali e blockchain. L'IA generativa sta guadagnando terreno negli acquisti, nell'esecuzione della supply chain e nei servizi post-vendita. Il rapporto valuta 33 fornitori in quattro quadranti, con Accenture e Capgemini che guidano in tutte le categorie.

Information Services Group (ISG) informa sobre un aumento significativo en la demanda europea de servicios de cadena de suministro digital en los últimos 24 meses. Los proveedores de servicios están adaptando sus enfoques según los niveles de madurez digital de los clientes, desde la estandarización básica de procesos hasta soluciones avanzadas impulsadas por inteligencia artificial. El enfoque del mercado en Europa difiere del de EE. UU., con un mayor énfasis en la digitalización, sostenibilidad, gestión de riesgos, cumplimiento normativo y resiliencia.

La transformación está impulsada por la Industria 4.0, la inestabilidad política y las regulaciones. Las tecnologías clave incluyen análisis predictivo, automatización, IA, IoT, gemelos digitales y blockchain. La IA generativa está ganando terreno en la adquisición, la ejecución de la cadena de suministro y los servicios postventa. El informe evalúa a 33 proveedores en cuatro cuadrantes, con Accenture y Capgemini liderando en todas las categorías.

정보 서비스 그룹 (ISG)은 지난 24개월 동안 유럽의 디지털 공급망 서비스에 대한 수요가 크게 증가했다고 보고했습니다. 서비스 제공업체는 고객의 디지털 성숙도 수준에 따라 기본 프로세스 표준화에서부터 고급 AI 기반 솔루션에 이르는 다양한 접근 방식을 채택하고 있습니다. 유럽 시장의 초점은 미국과 다르며, 디지털화, 지속 가능성, 위험 관리, 규제 준수 및 회복력에 더 큰 비중을 두고 있습니다.

이러한 변혁은 산업 4.0, 정치적 불안정 및 규제에 의해 촉진되고 있습니다. 주요 기술로는 예측 분석, 자동화, AI, IoT, 디지털 트윈 및 블록체인이 포함됩니다. 생성적 AI는 조달, 공급망 실행 및 판매 후 서비스에서 주목받고 있습니다. 이 보고서는 네 개의 사분면에서 33개의 공급업체를 평가하며, Accenture와 Capgemini가 모든 카테고리에서 선두를 차지하고 있습니다.

Information Services Group (ISG) rapporte une augmentation significative de la demande européenne pour les services de chaîne d'approvisionnement numérique au cours des 24 derniers mois. Les fournisseurs de services adaptent leurs approches en fonction des niveaux de maturité numérique de leurs clients, allant de la standardisation de processus basiques à des solutions avancées pilotées par l'IA. L'accent du marché en Europe diffère de celui des États-Unis, mettant davantage l'accent sur la numérisation, la durabilité, la gestion des risques, la conformité réglementaire et la résilience.

Cette transformation est impulsée par l'Industrie 4.0, des troubles politiques et des réglementations. Les technologies clés comprennent l'analytique prédictive, l'automatisation, l'IA, l'IoT, les jumeaux numériques et la blockchain. L'IA générative prend de l'ampleur dans l'approvisionnement, l'exécution de la chaîne d'approvisionnement et les services après-vente. Le rapport évalue 33 fournisseurs à travers quatre quadrants, Accenture et Capgemini étant en tête dans toutes les catégories.

Information Services Group (ISG) berichtet von einem signifikanten Anstieg der europäischen Nachfrage nach digitalen Lieferkettenservices in den letzten 24 Monaten. Dienstleister passen ihre Ansätze an die digitalen Reifegrade ihrer Kunden an, von einer grundlegenden Prozessstandardisierung bis hin zu fortschrittlichen KI-gesteuerten Lösungen. Der Markt in Europa hat andere Schwerpunkte als die USA, mit einem größeren Fokus auf Digitalisierung, Nachhaltigkeit, Risikomanagement, Regulierungscompliance und Resilienz.

Der Wandel wird durch Industrie 4.0, politische Unruhen und Vorschriften vorangetrieben. Zu den Schlüsseltechnologien gehören prädiktive Analytik, Automatisierung, KI, IoT, digitale Zwillinge und Blockchain. Generative KI gewinnt in den Bereichen Beschaffung, Ausführung der Lieferkette und After-Sales-Services an Bedeutung. Der Bericht bewertet 33 Anbieter in vier Quadranten, wobei Accenture und Capgemini in allen Kategorien führend sind.

Positive
  • Strong market demand growth for digital supply chain services in past 24 months
  • Successful integration of advanced technologies (AI, IoT, analytics) into service offerings
  • Multiple established market leaders identified across service categories
Negative
  • Political unrest affecting market conditions
  • Stringent regulatory requirements impacting operations
  • Complex digital maturity variations requiring differentiated service approaches

Insights

The surge in European demand for digital supply chain services represents a significant market opportunity for ISG (III). The company's research highlights three distinct market segments based on digital maturity, enabling targeted service delivery and revenue opportunities. Key growth drivers include:

  • Industry 4.0 adoption
  • Increasing political instability
  • Stringent regulatory requirements
  • Focus on sustainability and resilience

The emphasis on data-driven transformation and integration of advanced technologies like GenAI, blockchain and digital twins positions ISG well as a leading advisory firm in this expanding market. Their comprehensive provider analysis and market insights strengthen their competitive position in the $153M market cap company's core business of technology research and advisory services.

The integration of emerging technologies in supply chain services marks a pivotal shift in the industry. The layered approach to digital transformation based on client maturity levels demonstrates sophisticated market understanding. Critical technological developments include:

  • GenAI applications in procurement and execution
  • Advanced analytics for process optimization
  • Digital twins for simulation and planning
  • Blockchain for transparency and traceability

This technological evolution presents significant opportunities for ISG to expand its advisory services and strengthen its market position through specialized insights into these transformative technologies.

Service providers are transforming supply chain management with predictive analytics, automation and AI, ISG Provider Lens™ report says

LONDON--(BUSINESS WIRE)-- Enterprises in Europe are turning to service providers to integrate IoT, predictive analytics, automation and AI into their supply chain management systems to make their supply chains more resilient and to reduce risk, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Supply Chain Services report for Europe finds service providers across Europe have adopted a highly targeted approach to the design and delivery of their supply chain services based on each client’s digital maturity.

For enterprises with low digital maturity, the report says, the focus is on process standardization and establishing a strong digital foundation. Providers prioritize quick wins by addressing low-hanging fruit, such as process automation or other low-cost, low-risk initiatives. For clients with moderate digital maturity, the focus shifts to refining existing digital processes and optimizing performance.

For clients at the high end of the digital maturity curve, providers focus on maximizing the potential of digital technologies, ISG says. They collaborate with clients to develop advanced solutions that leverage AI, ML, IoT and other technologies to transform business processes and create new growth opportunities. This may include developing bespoke digital platforms, implementing predictive analytics models and exploring emerging technologies to stay ahead of the curve.

“The European market has seen a tremendous surge in the demand for digital supply chain services over the past 24 months, driven by a strong focus on Industry 4.0, rising political unrest and stringent regulations,” said Philipp Glatz, ISG partner and Smart Manufacturing lead for EMEA. “Compared to the U.S. market, the European market places a greater emphasis on digitalization, sustainability, risk management, regulatory compliance and resilience.”

Data-driven supply chain transformation, aimed at cost reduction and process optimization, remains a key focus for enterprises and their service providers, the report says. Technologies such as analytics, AI and automation, and data management are deeply integrated into most solutions. Network optimization, digital twins and blockchain have also gained traction.

For its ability process and analyze large, textual datasets, generative AI (GenAI) is being adopted in procurement, supply chain execution, and after-sales services, the report found. GenAI is also helping with ordinary supply chain functions such as warranty management, contract management, and guided recommendations for customer service agents and supplier risk assessors.

“The dynamics of the global supply chain are changing dramatically, and advanced technologies are pivotal in supporting digital transformation and creating more responsive, circular and sustainable supply chains,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “These technologies will be crucial in enabling enterprises to achieve significant operational efficiency and optimization.”

For more insights into how enterprises throughout the European supply chain are being served by a new generation of data-driven partners and providers, see the ISG Provider Lens™ Focal Points briefing, available from this webpage.

The 2024 ISG Provider Lens™ Supply Chain Services report for Europe evaluates the capabilities of 33 providers across four quadrants: Supply Chain Advisory and Consulting Services, Supply Chain IT Operations Services, Supply Chain BPO Services and Circular Supply Chain Services.

The report names Accenture and Capgemini as Leaders in all four quadrants. HCLTech, Infosys and TCS are named Leaders in three quadrants each, and Genpact, IBM, PwC and Tech Mahindra are named Leaders in two quadrants each. Cognizant, Deloitte, EY, Wipro and WNS are named Leaders in one quadrant each.

In addition, Wipro is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Genpact is named a Rising Star in one quadrant.

In the area of customer experience, Genpact is named the global ISG CX Star Performer for 2024 among supply chain service providers. Genpact earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Supply Chain Services report for Europe is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

Source: Information Services Group, Inc.

FAQ

What is driving the surge in European digital supply chain services demand according to ISG (III)?

According to ISG, the surge is driven by Industry 4.0 initiatives, rising political unrest, and stringent regulations, with a strong focus on digitalization, sustainability, risk management, and compliance.

Which companies are identified as Leaders across all four quadrants in ISG's 2024 European supply chain services report?

Accenture and Capgemini are named Leaders across all four quadrants in the 2024 ISG Provider Lens Supply Chain Services report for Europe.

How is Generative AI being utilized in supply chain services according to ISG (III)?

Generative AI is being used in procurement, supply chain execution, after-sales services, warranty management, contract management, and guided recommendations for customer service agents and supplier risk assessors.

Information Services Group, Inc.

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