The primary role of Investment bankers is to assist their wealthy (institutional investors & high-net-worth individuals) clients in raising capital, and efficiently handling debt/equity. Lately, with the advent of disruptive tech (AI, ML, & Automation), SCM or Supply Chain Management has been registering a steep hike in the amount of investments being made into the sector.
Tech giants and IT firms, lately, have offered some of the most cost-effective and efficient supply chain & logistics solutions to firms pertaining to sectors, such as manufacturing, pharmaceuticals, e-commerce, automotive, transportation, among many others.
This is the age of digitization of processes, and the same is resulting in the generation of huge amounts of capital in the supply chain management sector. Investments banks, lately, have identified the said industry as the one to invest in, while continuously been tracking the positive growth trends in the mentioned industry domain. For SCM industry aspirants, it’s high time to enroll into investment banking certifications, available online, to enhance their job-readiness.
Disruptive Technologies That Have Persuaded Banks to Invest in SCM
As per Statista, the globally renowned German market-research firm – cloud computing, big data analytics, & IoT were the three major disruptive technologies in 2018 that were attracting the maximum investments in the supply chain sector.
Degree of Investment in technologies disrupting supply chain strategies worldwide 2018
The study conducted by the research firm clearly showed that more than 50% of the supply chain firms were in favor of investing into cloud computing.
Opportunities for Investment Banking Industry in SCM
Digitization of SCM (Supply Chain Management) leveraging advanced tech has allowed businesses in the concerned industry to design a competent distribution model, and offer an enhanced level of customer support. It assists in running business processes with much ease. New-age tech has assisted e-commerce firms and other businesses across diverse industries to successfully predict the shopping patterns of consumers in the existing market.
Further, AI and automation has empowered supply chain sector to track the real-time movement, & location of the products and services in transit, with an improved speed & accuracy in doing the same. The conventional practice being deployed in the supply chain management sector has been fully replaced by the new technologically-powered infrastructure in the present era.
How Introducton of AI in SCM Has Infused Huge Capitals
Since the AI has come up in the supply chain sector, the capital investments has spiked up steeply, with banks spending a lot into the technology software tools, that have been introduced off late in SCM. In the near future, the capital investments are expected to grow even further, as the role of AI grows even stronger with time. Keeping in mind the steep growth in financial engineering during the last decade, investments banks have came to realize that it’s the technology that holds the capability to take any industry forward. And that’s why, the growing interest of investment banks in the supply chain tech market.
Global Tech Giants are Offering Comprehensive Supply Chain Solutions
Leading tech firms of the world, such as SAP & Oracle, among others, are currently offering comprehensive resource management software infrastructure, powered with cloud capabilities. A large number of start-ups are expected to emerge in the SCM sector soon. There cannot be a better occasion for investment banks to spend capital in a booming field like supply chain management.
The worldwide logistics market is forecasted to grow to a whopping $12,256 billion by the year 2022, while registering a highly impressive CAGR of 3.48%. Further, with the current growth being observed in the e-commerce sector across the world, the supply chain tech market is all set to skyrocket itself to newer heights.