Routing to resilient and sustainable supply chain
The power of proactive risk management
Microchips—the “brains” behind smart technology—are essential to manufacturing countless products, including cars. But when demand for new vehicles first plummeted, and then rebounded, during the pandemic, microchip supply chains struggled to keep up. Like many others in the industry, one global technology company saw that its lack of supply chain resiliency was putting both its profit margin and market valuation at risk. Company leaders were determined to find a solution and brought in Accenture to help.
The joint team first performed a maturity assessment and saw an opportunity for more advanced, proactive risk management. The team developed a “heat map” to identify high risk suppliers and components and recommend mitigating actions. To perform the analysis and understand revenue impacts, the team created a “supply chain digital twin,” a virtual replica of the company’s global supply chain. Finally, Accenture performed a stress test, which subjects the digital twin to pre-defined, disruptive scenarios and provides an overall resiliency score. Accenture then transferred the knowledge to the company’s internal Supply Chain Resilience team so it could take the wheel.
In just six months, Accenture and the company created a foundation for a more resilient, relevant and sustainable supply chain. The company’s ability to mitigate ongoing disruptions has contributed to reducing its revenue at risk by several hundred million dollars. These advanced capabilities also position the company for increased commercial success—proving to its customers that it is well prepared to navigate future upheavals. With Accenture’s help, the company now has the technology, talent and capabilities to continue building an advanced supply chain that’s ready for anything.
Managing Director – Strategy & Consulting, Supply Chain & Operations, Resilience Global Lead
Managing Director – Strategy & Consulting, Supply Chain & Operations
Jose A. Gonzalez
Managing Director – Industrial Products, UKI