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Impact of Digital on Supply Chain
Ayantan Sikdar
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
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
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
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
Need for Digital Supply Chain
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
Potential Disruptions in Supply Chain Plan
Supply Chain Area Digital Enablers Business Benefits Degree of Impact Dependencies on
Source
Supply Chain Area Digital Enablers Business Benefits Degree of Impact Dependencies on
Potential Disruptions in Supply Chain
Make
Supply Chain Area Digital Enablers Business Benefits Degree of Impact Dependencies on
Potential Disruptions in Supply Chain
Deliver
Supply Chain Area Digital Enablers Business Benefits Degree of Impact Dependencies on
Potential Disruptions in Supply Chain
Return
Supply Chain Area Digital Enablers Business Benefits Degree of Impact Dependencies on
Potential Disruptions in Supply Chain
The Landscape of Digital Supply Chain Management
Source : BCG Analysis
The Supply Chain Maturity Journey
Source : Gartner Research
CSCO’s next steps
Thank You

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Impact of Digital on Supply Chain

  • 1. Impact of Digital on Supply Chain Ayantan Sikdar
  • 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
  • 6. Need for Digital Supply Chain
  • 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
  • 14. The Supply Chain Maturity Journey Source : Gartner Research