The Digital Supply Chain’s Missing Link: Focus

Although the digitization of the supply chain is one of the key drivers of value and growth for businesses today, many approaches lack direction, and the full value and growth potential isn’t being realized. Initiatives are failing to scale up effectively because organizations are attempting to digitalize everything at once and spreading themselves too thinly.

The new report by Capgemini’s Research Institute The Digital Supply Chain’s Missing Link: Focus surveyed supply chain executives at more than 1,000 organizations across consumer products, and manufacturing and retail to understand the digital initiatives they are adopting, and the benefits they are seeing as a result.

The potential size of cost savings explains why supply chain is a top priority for organizations, but we found that only one in seven is able to scale up their digital initiatives, with the vast majority (86%) stuck at the PoC or pilot stage. Prioritization and focus are needed.

The research zooms in on the following areas:

  • The strategic importance of supply chain digitization
  • How successful organizations focus only on strategic initiatives and deploy them at scale
  • A shortlist of key use cases that can focus organizations’ efforts and investment
  • Key recommendations for a successful supply chain digitization journey.

Business leaders recognize the criticality of the next-gen digital supply chain for driving growth, but it’s an absence of focus that keeps many organizations from scaling up their digital initiatives.  To find out more about how your business can get more value from supply chain, download the report.

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Report – Digital Supply...

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Sound Bites

Rob Burnett, CIO of Global Supply Chain & Engineering, GE Transportation

Our management was a huge proponent of investing in the digital technologies for supply chain and that really drives things.

Professor Fraser Johnson and Professor Emeritus Michiel R. Leenders, Ivey School of Business, University of Western Ontario

Supply [procurement] presents a fertile area for cost improvement efforts, and most organizations expect it to deliver significant cost savings and profit improvements in our experience, supply [procurement] savings tend to be understated more often than they are overstated. Most chief supply officers only report those savings that can be easily substantiated. At almost every organization in our study, cost savings were measured by year-over-year price reductions, frequently referred to as ‘hard savings.’

Key Takeaways

50%

Organizations that say supply chain digitization is one of their top three priorities at an organization level

87%

Organizations that scale their supply chain initiatives have a clear procedure for evaluating a pilot use case compared to 24% of others

88%

Organizations that scale their supply chain initiatives are able to quickly adapt their supply chain to customer needs

Experts

Jerome Buvat

Expert in Digital Transformation & Strategy, Strategy & Transformation

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