Digitization has emerged as a critical differentiator between resilient supply chains and those vulnerable to disruption. The QIMA Global Survey for 2025 reveals compelling evidence that digital transformation is no longer optional for
businesses seeking to maintain competitive advantage in international procurement.
The Digitization Imperative: Performance Gaps Widening
According to QIMA's comprehensive research, “[h]ighly digitized supply chains outperform the rest across the board" with remarkable metrics: they are "twice as transparent," 54% easier to manage, and 30% more on schedule compared to less digitized counterparts.
The performance gap is particularly evident when examining specific operational challenges. QIMA notes that "poorly digitized supply chains struggle twice as much with multiple sourcing challenges," highlighting how technology implementation directly correlates with operational resilience.
Current State of Supply Chain Digitization
The adoption of specialized digital tools remains uneven across industries and company sizes. QIMA reports that 16% of respondents globally reported relying on specialized software, platforms, and tools for supply chain management, while 44% indicated that they are more likely to only use such tools for specific tasks. This means a significant 60% of businesses have adopted specialized digital tools to some degree.
Conversely, approximately one-third of businesses worldwide reported mainly using basic digital tools such as email, messaging and simple spreadsheets to manage their procurement processes, revealing a substantial digitization gap.
This selective approach to digitization represents a shift in strategy, as "the proportion of supply chains with medium levels of digitization has nearly doubled, at the expense of both poorly- and highly-digitized supply chains." This suggests that "businesses may be becoming more selective about the digital tools they adopt, potentially pausing or scaling back their digitization efforts due to budget constraints and management strategies."
Company size remains a significant factor in digitization rates, with QIMA finding that large companies were nearly three times more likely to have highly digitized supply chains compared to SMEs, and were also more inclined to report plans for further digitization.
The Visibility Crisis
Perhaps most concerning is the persistent lack of supply chain visibility plaguing global businesses. QIMA's research reveals that "only 13% of respondents globally reported having knowledge of their entire sourcing network, including raw material and component suppliers." This represents a decline from the previous year's 16%, suggesting that "complete supply chain visibility is increasingly elusive for businesses worldwide."
Even more alarming, over one-third of respondents either reported knowing less than 50% of their supply chain or were unable to assess their company's level of supply chain visibility, highlighting a significant blind spot in global sourcing operations.
The visibility challenge varies by business type, with QIMA noting that brands and retailers were the least likely to have complete insight into their supply chain beyond tier 1 suppliers. Only 10% of respondents in this group reported full supply chain visibility, compared to 12% of manufacturers and 13% of trade intermediaries.
Industry-specific visibility challenges are also evident. According to QIMA, "the Toys and Electronics and Electricals (E&E) sectors were found to have the most opaque supply chains, on average: 35% and 29% of respondents, respectively, reported knowing less than half of their suppliers or struggled to assess their degree of supply chain visibility."
In contrast, "Textile, Apparel, and Footwear emerged as leaders in supply chain visibility this year, with up to 17% of respondents in these sectors reporting full insight into their supplier network – an improvement on the last year's survey findings."
Digital Solutions Gaining Traction
Despite challenges, forward-thinking businesses are investing in specific digital technologies to address their most pressing supply chain concerns:
- Traceability Solutions: QIMA reports that "Almost half of all respondents reported either currently using or actively implementing such solutions, with an additional 25% planning to begin implementation in 2025." This means that by the end of 2025, potentially 75% of businesses could be utilizing traceability technologies.
- Data-Centered Tools: "2024 saw a surge in popularity for various data-centered solutions with significant synergy potential, including advanced analytics, big data, and artificial intelligence (AI)." The survey specifically notes that "the popularity of big data solutions in 2024 has doubled compared to two years ago."
- Artificial Intelligence: The adoption of AI has experienced "even sharper growth, with 30% of respondents indicating they are using or currently implementing AI solutions, up from 16% in the previous survey." This represents an 87.5% increase in AI adoption year-over-year.
Investment Plans and Industry Leaders
The commitment to digital transformation remains strong, with QIMA reporting that "Over three-quarters of respondents worldwide indicated plans to invest in new supply chain technology within the next 12 months."
Industry-specific digitization trends reveal interesting patterns. According to QIMA, "Toys and Electronics & Electricals (E&E) emerged as 'digitization leaders'. Overall level of supply chain digitization was also high in the Food sector, contrasting sharply with findings from the previous survey."
Interestingly, "the most plans to invest in new supply chain technology were reported by respondents in the currently least-digitized industries represented in the survey, such as Accessories, Jewelry and Eyewear, as well as Printing and Packaging," suggesting these sectors recognize their need to catch up.
Key Drivers for Supply Chain Digitization
Understanding why businesses invest in digital transformation provides valuable context for sourcing professionals. QIMA identifies that "enhanced product quality and increased supply chain visibility were cited as key motivators for investing in digital supply chain technologies in 2025."
The importance of visibility as a driver varies by company size, with "two-thirds [of large and mid-sized companies] citing it as a reason for investing in new supply chain technology, compared to less than half of SMEs."
Regulatory compliance is another significant driver, particularly in developed markets, with "over one-third of respondents in both [EU and US] groups stating improved regulatory compliance as a reason for increased digitization efforts."
Additional motivations include "streamlining inventory and vendor management, implementing new data systems, and enhancing overall efficiency of the procurement function."
Barriers to Digital Transformation
Despite the clear benefits, not all businesses are accelerating their digital initiatives. QIMA notes that "the primary reasons for not investing in new supply chain technology included digitization not being a priority for company management, along with a lack of IT resources and budgets."
This hesitation comes despite evidence that digital solutions directly address the biggest supply chain challenges identified in the survey:
- Rising costs: 53% of businesses struggled with increasing prices
- Logistics hurdles: Half of supply chains faced significant obstacles
- Regulatory complexity: 25% of businesses found it difficult to keep pace with evolving regulations
- Quality management: "over one-quarter of respondents worldwide (including 32% in the US) classifying it as 'difficult' or 'very difficult'"
The Impact of Digitization on Operational Challenges
The survey provides compelling evidence of how digital tools mitigate specific operational challenges. QIMA reports that "businesses that utilized specialized tools and software for managing their procurement found it considerably easier to tackle both operational and compliance-related issues, including:
- forecasting demand and managing inventory
- communicating with suppliers adapting to changing regulations
- managing environmental and human rights compliance in their supply chains"
On-time delivery emerged as a particular pain point in 2024, with QIMA noting that "EU-based businesses, in particular, found it especially difficult to adhere to their supply chains schedules, with 55% reporting that it was 'difficult' or 'very difficult', compared to 43% globally."
Actionable Steps for B2B Sourcing Professionals
Based on QIMA's comprehensive research, here are strategic recommendations for sourcing professionals looking to leverage digitization for competitive advantage:
1. Prioritize Visibility Investments
Given that "supply chain visibility and product traceability emerged as some of the biggest challenges, with around one-third of respondents globally rating them as 'difficult' or 'very difficult'," sourcing professionals should prioritize technologies that enhance transparency.
QIMA's data confirms that "respondents who regularly utilized specialized digital tools and platforms to manage their procurement were nearly twice as likely to have completely mapped their supply chains compared to businesses that relied on basic tools like spreadsheets."
2. Adopt a Phased Approach to Digitization
For companies with budget constraints, QIMA's findings suggest a targeted approach may be most effective. Focus first on digital solutions addressing your most pressing challenges, whether that's quality management, regulatory compliance, or logistics coordination.
As the survey notes, even businesses with "medium levels of digitization" that use specialized tools "for specific tasks" (44% of respondents) saw significant improvements compared to those using only basic digital tools.
3. Leverage Data Analytics for Proactive Decision-Making
The growing popularity of "advanced analytics, big data, and artificial intelligence (AI)" among survey respondents highlights the value of these technologies for sourcing professionals. With big data adoption doubling in two years and AI implementation increasing from 16% to 30% in just one year, these technologies represent the fastest-growing segment of supply chain digitization.
4. Integrate Quality Management into Digital Strategy
QIMA's survey identified quality management as an increasing challenge, "with over one-quarter of respondents worldwide (including 32% in the US) classifying it as 'difficult' or 'very difficult'." The challenge was particularly acute in specific sectors, with "Ensuring consistent quality was especially challenging for businesses in the Toys and Recreational Products, and Printing and Packaging sectors."
5. Prepare for Regulatory Compliance Through Digitization
With "37% of businesses not directly involved in manufacturing – such as brands, retailers and trade intermediaries – reported finding it challenging to adapt to new and evolving regulations," sourcing professionals should evaluate digital solutions that streamline compliance documentation and verification processes.
The survey also noted that "businesses cited environmental compliance as being more challenging than compliance related to human rights- and labor-related issues," suggesting priority areas for compliance-focused digital tools.
6. Consider Industry-Specific Digital Solutions
QIMA's research shows significant variation in digitization levels and challenges across industries. For example, while Toys and E&E lead in digitization (despite having the least visibility), other sectors like Accessories and Printing/Packaging are planning the most investments for 2025,
indicating recognition of their digital gaps.
Conclusion
The QIMA Global Survey for 2025 provides compelling evidence that supply chain digitization delivers tangible benefits in transparency, management efficiency, and on-time delivery. As global sourcing continues to face pressures from rising costs, logistics challenges, and regulatory complexity, digital transformation offers a clear path to enhanced resilience.
For B2B sourcing professionals, the message is clear: strategic investments in digital supply chain technologies are no longer optional but essential for maintaining competitive advantage in an increasingly complex global marketplace.
As QIMA's research demonstrates, companies that embrace digitization are better positioned to navigate disruptions, ensure quality, maintain compliance, and ultimately deliver greater value to their organizations and customers.
