More and more companies are turning to control towers to provide supply chain network visibility that helps them manage through disruptions. But too often, while they improve visibility, they fall short on delivering full value. A true supply chain control tower (SCCT) does so much more. What’s the difference?
A true SCCT enables a company to proactively orchestrate across its supply chain functions and the broader supply chain network to increase enterprise value. It brings together people, processes, technology infrastructure, and data in new ways of working. From end-to-end visibility to autonomous execution, it helps companies make supply chains more customer-centric, sustainable, responsive, and agile.
The four pillars of a value-driving SCCT
An SCCT built to drive value comprises four pillars that continuously evolve to deliver against key goals and metrics. Here’s how to derive the full value of an SCCT:
An SCCT is highly modular, which makes it far easier to roll out in a way that generates value quickly.
The hybrid roll-out
Leading companies take a hybrid roll-out approach based on business use cases and building capabilities over time. By implementing the SCCT through agile sprints of use cases, companies can build scale (additional entities, regions, or functional areas) while adding depth (visibility, alerts, and response)—one release at a time.
Taking a use case-driven, flexibly architected, hybrid approach to an SCCT can deliver so much more value than the control tower concepts that have been rolled out or attempted for years. Companies that have adopted true SCCTs have realized significant quantitative and qualitative benefits:
- Increase revenue by up to 1% through reduced lost sales
- Reduce logistics costs by 3-5% and improve labor efficiency by 10-20%
- Optimize capital efficiency with a 5-15% reduction in inventory and 8-15% reduction in destroy/donate/discount
Strategic and operational value
- Become a data-driven enterprise to make better decisions
- Win over customers with improved service levels and product traceability and visibility
- Run efficient, scalable, and agile operations with improved integration, automation, and risk mitigation
Supply chain control towers are rapidly changing how supply chain networks are managed—and how they contribute to strategic business outcomes. Today, an SCCT is a “must-have” capability for companies to move toward an optimized and self-orchestrating supply chain network. It can drive greater enterprise value and help companies thrive.
To read more about SCCTs and their benefits, download the full report.