Most traditional supply chains are challenged to compete in today’s global economy. Linear and static, they struggle to serve customers whose diverse needs are constantly changing.
What companies need now to stay competitive in this volatile business environment is a new supply chain strategy—a strategy structured around the flexibility and scalability that digital technologies can enable.
With such a strategy companies unlock their supply chain to be an engine for growth, enabling quick movement into new geographies, supporting new value-delivery approaches, and creating new products and services.
Leaders are starting to build digital supply networks. Four key characteristics distinguish their supply chains from traditional, linear supply chains:
They don’t fly blind. Leaders leverage cloud technologies and analytics to give them end-to-end supply chain visibility. They can see sources of revenue sooner than the competition and see where the best source of supply is located.
Their supply chains are smart. Leaders excel at creating data-driven insights. They have a deeper understanding of both customers and markets enabling them to predict where new growth opportunities may arise.
They embrace plug-and-play business networks. Leaders leverage analytics, cloud and social media to introduce scalability right across their supply chains, end to end. As a result, they can add (or shed) suppliers or customers and invest in (or divest) businesses as required.
They recognize speed as the currency of the future. Leaders allocate product design and manufacturing capacity across their facility network much more quickly and dynamically.
1.5 trillion reasons for logistics to capitalize on digital
To say digital is transforming the logistics industry is an understatement. New digitally enabled delivery services and business models are capturing more value every day. How big is the prize for players that adopt digital approaches? And what are the practical steps they can take now to make the change? New research from Accenture and the World Economic Forum reports that there is $1.5 trillion of value at stake for logistics players and a further $2.4 trillion worth of societal benefits as a result of digital transformation in the coming years.
Plugging into the digital supply network means capitalizing on the interconnectedness of all your functions. The key is seeing how the critical value-creating activities come together and drive operational excellence across the network. To see the bigger picture ask yourself:
Can you sense a change in demand? Could you automate exception management and make it more predictive by leveraging analytics?
Can you meet a demand surge by sending new designs to suppliers or switching local production?
Do you know the likelihood of your suppliers re-calling a part? Could you predict it? Are all your aftermarket services ready to respond?