It was found that manufacturers consider digital transformation to be the most important factor when establishing new supply chain strategies.

Rockwell Automation, the largest industrial automation and digital transformation company, announced on the 23rd that a study commissioned from Forrester Consulting identified digital transformation, maintaining sustainability, and improving customer experience (CX) as the most critical tasks for companies to establish new supply chain strategies and enhance brand loyalty.

In addition, results showed that product location tracking and serial number assignment contribute to improving corporate productivity.

Rockwell Automation conducted a study on the topic of "Increasing Brand Loyalty and Generating ROI through Improved Location Tracking Capabilities" to determine the extent to which environmental, social, and governance (ESG) commitments, external regulatory requirements, and brand reputation are driving corporate interest in supply chain tracking solutions.

According to the survey results, companies in the Asia-Pacific region showed high interest in supply chain digital transformation (62%) and responded that they hoped to establish or improve corporate sustainability policies (59%). In particular, it was confirmed that location tracking and serial numbering have a significant impact on improving corporate productivity.

Companies are already implementing digital transformation policies and are continuously evolving based on the current situation. They have focused on 'location tracking capabilities' as a factor that creates new sustainability and visibility in the field of customer experience. In fact, 83% of respondents answered that location tracking features and serial number assignments for their products help maintain market competitiveness.

The illegal distribution of counterfeit products through backdoor markets was cited by 89% of respondents as a major challenge. Companies in the Asia-Pacific region suffer the most losses from counterfeit products, with 70% of respondents reporting an annual revenue loss of 11–60%.

This contrasts with responses of 54% from EMEA (Europe, Middle East, and Africa) companies and 44% from North American companies. Companies that invested in serial numbering to address this issue appeared to have benefited from business expansion. 45% of respondents stated that sales increased by more than 31% directly as a result of serial numbering.

The success factors for companies cited by respondents included: demonstrating the overall status of products in the supply chain (79%), the ability to quickly recall genuine products (78%), and enhancing brand loyalty through product management and improvement (77%).

In addition, 57% of supply chain decision-makers responded that they have already adopted or are expanding policies to reduce waste generation within the supply chain. This is because regulatory compliance is a key factor in determining new investments required for supply chain operations, and requirements related to sustainability and customer experience are acting as drivers of change.

Matt Fodenwalt, Vice President and Manager of Systems & Solutions at Rockwell Automation, stated, “This survey confirmed that companies are experiencing that location tracking capabilities, in addition to other important factors, not only enhance brand loyalty and optimize supply chains but also reduce the damage caused by counterfeit products in key markets.”

Currently, Rockwell Automation’s supply chain products are combined with cloud-based location tracking technology from Kezler, a cloud-based product digitalization and traceability platform company, enabling customers to connect material suppliers, manufacturing and logistics departments, and consumers through a single real-time location tracking platform. Rockwell Automation and Kezler have already supplied location tracking solutions to customers such as FrieslandCampina, one of the world’s largest dairy companies.

This research report was conducted by Forrester Consulting at the request of Rockwell Automation, and the report is available on the Rockwell website.