digital transformation in supply chain planning: on …...digital transformation in supply chain...
TRANSCRIPT
Digital Transformation in Supply Chain Planning: On Pace or at Risk?
1. https://hbr.org/2019/08/dont-put-adigital-expert-in-charge-of-your-digitaltransformation2. https://www.entrepreneur.com/article/324016
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How are supply chain planning leaders formulating their digital strategies for 2020?200 supply chain leaders responded
Cited volatile demand and unpredictable customers as a supply chain planning challenge
89%Are in the exploring or evaluating stages of digital transformation, still testing the waters and seeking the best use cases
58%Are seeking improved service levels in the coming year
54%Will measure digital transformation success by increased sales
Have a machine learning project underway, meaning for many it’s still more hype than adoption
14%
What’s Driving Digitization of Supply Chain Planning?
Investing in people to drive digital transformation
What’s holding companies back?
Most companies are still formulating a digital strategy and gaining support
Gain operational e�ciencies (e.g. productivity, working capital, cash flow)
Evolving customer behaviors and expectations (product options, delivery speed and flexibility, omni-channel, etc.)
Improve customer service levels/order fill rate
Drive business performance (e.g. revenue and profit)
42% 41%39%
37%
Exploring
Evaluating
Executing
Gaining Broad Organizational Support
Reaping the Benefits
32%
26%
8%
7%
27%
+
Data quality/lack of data
25%
People / Skills deficits
23%
Risk aversion
24%
Digital transformation is often less about a radical rethinking of the business than about learning how to use digital tools to better serve customers.”1
+
Fear of change
30%Improve forecast accuracy 40%
Sense demand 28%
Improve promotion forecasting
19%
Machine learning is a critical part of supply chain digital transformation plans to:
Rather than wait for market influences to force their hands, businesses should proactively pursue digital transformation to stay ahead of the game.”2
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Currently executing digital planning transformation:
In execution of digital transformation, size matters
of smaller companies (<$500mm)
15%of large companies(>$1b)
41%
Hiring individuals with strong analytical skills
Hiring individuals with established supply chain backgrounds
Retraining existing sta� for new roles
48% 38%31%
32%
Facilitate new product introductions
23%