The document discusses the major impact of digital technologies on supply chain management. It notes that industries now deal with real-time data exchange and storage, and rapidly changing customer behavior due to information availability. This has shifted companies from "doing digital" to "being digital" as a top priority. The advent of technologies like the Internet of Things, artificial intelligence, 3D printing and others are disrupting traditional supply chain models. The document introduces the concept of a digital supply chain that uses these technologies to improve business processes and provide value to all stakeholders. It outlines some of the key benefits of digital supply chains, as well as potential disruptions across different supply chain activities from sourcing to delivery. Finally, it maps the landscape and
2. Contents
Major Changes in Industries
Advent of Digital Technologies
The Digital Supply Chain
Potential Disruptions in Supply Chain Business Processes
Digital Journey
Major Changes in Industries
Advent of Digital Technologies
The Digital Supply Chain
Potential Disruptions in Supply Chain Business Processes
Digital Journey
3. Major Changes in Industries
Real time exchange,
storage and
processing of large
amount of data
Rapid change in
customer behavior
because of
information
availability
From “Doing
Digital” to “Being
Digital” – a top
organizational
imperative
4. Happenings in Technologies
Source : Gartner 2016 Hype Cycles
By 2018, 20% of all business content will be authored
by machines
By 2018, more than 3 million workers globally will be
supervised by a "roboboss”
By 2020, more than 35 billion things will be connected
to the Internet
The growing range of 3D-printable materials will drive
a compound annual growth rate of 64.1% by 2019
Source : Gartner Analysis
5. Digital Supply Chain
Digital Transformation
Digital Supply Chain uses digital technologies
to alter traditional value chain of products and
services, business models and business
processes to provide altogether new and
improved value to all stakeholders – Supplier’s
suppliers, Suppliers, Manufacturers,
Distributors, Wholesalers, Retailers and End
Customers/ Consumers
Digital Supply ChainTraditional Supply Chain
40% of the top 100 discrete manufacturers
will rely on connected products by 2018
-
IDC
There will be 30 billion connected devices by 2020 which
will become critical components in the connected supply
chain and smart manufacturing
- IDC
50% of manufacturers will explore the viability
of micrologistics networks by 2017
- IDC
7. Values Delivered by Digital Supply Chain
Better
decisions
and
transparency
Increased
SCM
flexibility
Lower
inventory and
warehousing
costs
Lower risk
and
complexity
Higher
product and
service
quality
Lower
logistics and
transportatio
n cost
8. Potential Disruptions in Supply Chain Plan
Supply Chain Area Digital Enablers Business Benefits Degree of Impact Dependencies on
9. Source
Supply Chain Area Digital Enablers Business Benefits Degree of Impact Dependencies on
Potential Disruptions in Supply Chain
10. Make
Supply Chain Area Digital Enablers Business Benefits Degree of Impact Dependencies on
Potential Disruptions in Supply Chain
11. Deliver
Supply Chain Area Digital Enablers Business Benefits Degree of Impact Dependencies on
Potential Disruptions in Supply Chain
12. Return
Supply Chain Area Digital Enablers Business Benefits Degree of Impact Dependencies on
Potential Disruptions in Supply Chain
13. The Landscape of Digital Supply Chain Management
Source : BCG Analysis