Content Editor Web Part

Understanding the Future of Operations
Accenture Global Operations Megatrends Research

Click on the interactive circles below to navigate
through each section of the research

Supply Chain Risk Management
Research overview
Emerging Markets
Big Data Analytics

Introduction

The Global Operations Megatrends research explores three topics that were identified as priority concerns among global supply chain leaders: supply chain risk management, big data analytics and emerging-market growth. The study reveals the practices that leaders are using to generate better than average results from their investments in these areas, and will help executives reposition their organizations to respond to market volatility and improve business outcomes.

Highlights

umbrella

Supply Chain Risk Management

  • 61% of leaders* make risk management a strategic imperative.
  • 43% of leaders have a central risk management function.
  • 60% of leaders will boost their investment in risk management by 20% or more in the next two years.
Read more

* Reported their supply chain risk management ROI exceeded 100 percent.

simplified image of a brain inside a person

Big Data Analytics

  • Leaders are 6 times more likely to report an increase in supply chain efficiency of 10 percent or greater.
  • Leaders are 5 times more likely to report shortened order-to-delivery cycle times.
  • Leaders are 5 times more likely to report an improvement in demand driven operations.
Read more
 chart

Emerging Markets

  • Leaders are more than twice as likely to say their supply chain has helped achieve greater than 20 percent growth in emerging markets.
  • Leaders are more than twice as likely to consider differentiated quality as a key metric for success.
  • Leaders are more than twice as likely to extensively use technology to support their company’s emerging-market efforts.
Read more

About the Research

The research involved a web-based survey of 1,014 senior executives primarily at global companies headquartered across North America, Europe, and Asia. Fifty-six percent of respondents held C-level titles, including chief supply chain officer, chief procurement officer, chief sourcing officer, chief operations officer and chief operating officer. The remaining 44 percent were senior-level supply chain, procurement or operations executives.

Revenues of Respondents

Don’t Play it Safe When it Comes to
Supply Chain Risk Management

The supply chain operation has become fundamental to the success of organizations. Managing supply chain risk is critical given its potentially far-reaching impact on a company’s business. But what should companies do to make their risk management initiatives most effective?

A small group of respondents indicated their risk management ROI exceeded 100 percent. Why did these companies get such outsized returns, compared with the rest of the companies in our survey? We found three key practices that distinguished these leading companies from the rest.

Pin

Leaders make supply chain risk management a priority

Sixty-one percent of leaders* consider risk management a strategic imperative for their supply chain organization. Leaders develop capabilities that enable them to gain greater visibility and predictability across their supply chains.

Four Arrows pointing to a dot in the center

Leaders have greater centralization of responsibility for supply chain risk management

Forty-three percent of leaders have a central risk management function, led by a C-level or vice president-level executive. With a centralized risk management function, leaders plan and react to risks in a more coordinated and efficient manner.

Wallet

Leaders invest aggressively in risk management capabilities with a specific focus on end-to-end supply chain visibility and analytics

Leaders are nearly three times as likely as other companies to plan to boost their investment in risk management by 20 percent or more in the next two years, while a majority of non-leaders are targeting an increase of less than 20 percent over their current investment.

* Reported their supply chain risk management ROI exceeded 100 percent.

Supply Chain Risk Management Video

Supply Chain Risk Management Video Download Video Transcript Media Help

Supply Chain Big Data Analytics: Hype or Here to Stay?

Advancements in software, lower technology costs and the growth of digital technologies have made it possible for companies to collect increasingly massive amounts of data. But how should companies apply analytics to this data to drive higher supply chain performance?

A subset of respondents said that big data analytics has lived up to its promise—helping them improve customer service and demand fulfilment, experience faster and more effective reaction time to supply chain issues, increase supply chain efficiency, and drive greater integration across the supply chain. Analysis of these responses revealed a strong correlation between positive business results and three key practices.

Abacus or Counting Frame

Leaders make developing a robust analytics strategy
a high priority

An enterprise wide strategy that enables a company to use big data to drive business value is most strongly correlated with big data analytics success. Leaders develop a strong analytics strategy, one that clearly defines the issue and opportunity at hand, before attempting to implement and use big data analytics.

Calendar

Leaders emphasize operationalizing big data analytics

Companies that embed analytics in their day-to-day supply chain operations generate more significant and far-reaching benefits than those that use big data analytics on an ad hoc basis in limited areas of focus.

simplified image of a brain inside a person

Leaders focus on hiring the right analytics talent

The data and tools are useless unless a company has people with the right skills to conduct the analysis. Leaders create a team of data scientists dedicated to big data analysis that can help develop insights on an ongoing basis.

Supply Chain Big Data Analytics Video

Supply Chain Big Data Analytics Video Download Video Transcript Media Help

Supply Chain Success Factors in Emerging Markets

Global organizations are stepping up their efforts to expand their presence in emerging markets to capitalize on growth opportunities in those regions. But what practices should companies employ
to best position themselves to drive growth and success with their emerging markets investments?

A subset of respondents indicated their supply chain organization helped the enterprise achieve greater than 20 percent growth in their priority emerging markets. Why were the supply chains of these companies able to exceed expectations in supporting emerging-market initiatives? Analysis of their responses revealed four key practices that distinguished these leading companies from the rest.

Analogue Sliders

Leaders use a broad mix of approaches to provide
supply chain support of emerging-market initiatives.

There are myriad ways the supply chain can service a company’s priority emerging markets. Leaders are more likely than others to use all of
them—especially investing in assets in the regions, leveraging their
existing operations, and hiring local talent to manage their operations.

Magnifying Glass

Leaders complement a low-cost structure with a focus on
quality and market knowledge to access new markets and provide differentiation.

Success in emerging markets requires much more than a lean cost structure. While leaders in our study tended to use the same measures of success as
others, they were more than twice as likely (17 percent versus 7 percent) to consider differentiated quality as a key metric. Furthermore, leaders placed
a greater emphasis (39 percent versus 30 percent) on deeply understanding
their market’s culture and ways of doing business.

Tablet and a Phone

Leaders use technology extensively to increase efficiency, improve flexibility, and enhance decision making.

Technology is vital to helping companies manage the high degree of complexity and volatility inherent in global operations. Leaders were more than twice as likely as others (72 percent versus 31 percent) to extensively use technology to help support their company’s emerging-market efforts. In fact, nearly three-quarters
of leaders said they have made heavy investments in such automation tools as manufacturing systems, ERP, and supply chain systems.

Wallet

Leaders continue to invest aggressively in supply chain operations to keep pace with changing market dynamics.

For companies to achieve the growth goals they’ve set for their target emerging markets in the next three years many are planning investments in a variety of
areas across their operations. Leaders are nearly twice as likely as others to be planning to invest more than $40 million. They are especially more likely than others to plan to invest in improving and expanding their physical infrastructure, driving operational excellence, adopting customer analytics to understand customers better, and cultivating more partner relationships to extend their emerging-market reach and expertise.

Supply Chain Success Factors in Emerging Markets Video

Supply Chain Success Factors in Emerging Markets Video Download Video Transcript Media Help
Global Operations Megatrends Research - Accenture 
Read about the priority concerns of global supply chain leaders—supply chain risk management, big data analytics and emerging market growth.
supply chain risk management, Big Data Analytics Supply Chain, Emerging Markets
Yes  Yes 
  No 
By using this site you agree that we can place cookies on your device. See our privacy statement for details.