Supply chains are increasingly facing major disruptions, with the impact of COVID-19 at the top of the list
of digital champions have implemented solutions to gain visibility across their end-to-end supply chain
of companies are using AI in at least one area of supply chain optimisation
of digital champions have achieved external collaboration or end-to-end orchestration
We recently carried out a global digital operations survey that asked manufacturers to take a closer look at how their supply chains are transforming in this evolving marketplace.
We surveyed more than 1,600 supply chain executives in 33 countries across the globe and investigated what capabilities allow companies to stabilise their supply chains and stand out as a ‘supply chain digital champion’.
The results showed that four out of five of respondents in the UK cut of the global digital supply chain survey, that have already implemented a supply chain capability, have seen a positive impact on their business.
Managing profitability and supply chain security were seen as the two biggest challenges facing companies in the UK.
When transforming the supply chain, we believe there are four key areas firms should focus on:
Tomorrow's supply chains will be connected and self-orchestrated ecosystems: More than 80% of Digital Champions describe their supply chain focus as external integration or end-to-end orchestration.
Investments into supply chain excellence pay off: Digital Champions achieved savings of 6.8% annually in supply chain costs, along with a 7.7% revenue increase.
Supply chain transparency sets the stage and is a catalyst for greater sustainability: More than 50% of Digital Champions say that supply chain transparency is a high or top priority.
Next-level planning is synchronised real-time with execution, integrates supply chain partners and enables continuous optimisation: 72% of Digital Champions have implemented end-to-end supply chain planning; they are also taking the next step towards closed-loop planning.
Smart logistics is the key savings driver and a growth lever in the connected supply chain ecosystem: Digital Champions rate smart logistics as their top supply chain priority. Smart logistics accounts for more than 50% of overall supply chain cost savings.
Dynamic supply chain segmentation enhances customer centricity and continuously balances service levels, costs and margins: 73% of Digital Champions have already implemented segmentation and report a strong positive impact on their business.
Artificial intelligence is accelerating supply chain improvements and will become the new norm: Digital Champions have clearly identified the areas where AI brings value and use AI two to three times more extensively than Digital Novices.
Mastering tomorrow's supply chain challenges through the next-level supply chain organisation and capabilities: To excel in a constantly changing environment, companies need to develop a flexible organisation with a digitally empowered and upskilled workforce.
Supply chains and logistics are experiencing a once in a generation challenge as a result of the COVID-19 pandemic, as they respond to significant changes in supply and demand from customers, governments, business and suppliers. Throughout the pandemic the companies that have come out on top have demonstrated the innovation possibilities such as manufacturers switching to PPE production and supermarkets rapidly scaling up their home delivery capability for the vulnerable.
Where companies made investments in near real-time digital data and decision making, joining up their end-to-end supply chain, they tended to fare better and were able to be more responsive to demand changes and build resilience into their supply chains.
With environments constantly changing, companies need to be able to continuously adapt and improve. In order to prepare against future issues and increase resilience, companies should apply this innovative mindset to their supply chains, it can directly support more responsive, integrated planning, transportation and sourcing. Take a fresh look at those plans you shelved for a later date and what emerging technologies could benefit your operations.