Dive Brief:

• JDA Software on Monday announced an alliance with Ernst & Young to use both organizations' solutions to help clients reinvent their supply chains through digitization, according to a press release.
• The news comes just a month after JDA announced it would team up with the Massachusetts Institute of Technology (MIT) to research how new technology, like machine learning, AI and IoT, can be applied for supply chain use cases.
• The two partnerships show how JDA is preparing to meet a growing need to implement digital solutions with EY, while developing applications of next-generation technology for the industry with MIT.

Dive Insight:

Partnerships are nothing new for solutions providers, but the scope and number of agreements shed light on the high demand for supply chain solutions — and the expectation it will increase due to Industry 4.0.

"Supply chain in general is at a tipping point in the digitalization of its business processes and tasks," Alex Price, JDA Software's GVP of Global Alliances, Partnership & Technology Ecosystems Strategy told Supply Chain Dive via e-mail. "The technologies have begun to be proven to provide returns to the customer, which in turn has created increased demand for transformation."

In the past few years, countless organizations have entered high-profile supply chain optimization or transformation initiatives.

While corporate transformation can happen for many reasons, Fortune 500 companies like Kraft Heinz, Under Armour and others have based their initiatives on creating a truly digital supply chain. In doing so, the theory goes, companies can create a more flexible and dynamic logistics network to adapt to rising pressures from consumers to deliver high-quality products when and how they demand them.

"With the gradual recovery to the Recession, budgets have allowed for increased spend," Price said. "Continued strength and demand for omni-channel, the shift in consumer expectations of the retail experience, and the need to fulfill those customer expectations down the supply chain have pushed all participants in the supply chain to reconsider their capabilities."

Not all industries have adapted equally, however. Retail and consumer packaged goods companies are facing the greatest pressure from consumers today. In the future, the proliferation of IoT may require the plastics, healthcare and auto industries to create digital twins, too. Partnerships between technology providers, research institutions and consultants can help meet those new needs.