Driving a Digital Transformation within a Value Network
Localized manufacturing and the evolution of digital manufacturing is a major thrust for Supply Chain 2030. In this session Jabil shares its digital journey driven by an intelligent digital supply chain that uses big data analytics and advanced machine learning to deliver much-needed visibility and risk mitigation to connect stakeholders from the earliest stages of product design and extending all the way through to the final delivery of manufactured products to customers.
John Caltabiano, Vice President of Supply Chain at Jabil
m the 2017 Supply Chain Insights Global Summit
3. Directly engagedLimited engagement -
delegate Digital Business
decisions to the executive
management team
Limited engagement-
delegate Digital Business
decisions to the Digital Advisory
Board or similar
No engagement
OVER HALF OF BODs SAY THAT THEIR BOARD IS
DIRECTLY
ENGAGED AND SPONSORS DIGITAL BUSINESS
INITIATIVES
Q. How would you describe the level of
engagement your organization’s Board of
Directors/non-executive board or
supervisory board currently has with its
Digital Business initiatives?
n=50 BoD
4% 8% 34% 54%
4. Market - Digital Masters Outperform Their Peers
DIGITALCAPABILITY
LEADERSHIP CAPABILITY
REVENUE GENERATION
+6%
Basket of indicators:
Revenue/Employee, Fixed Asset Turnover
+9%
-10%-
4%
DIGITALCAPABILITY
LEADERSHIP CAPABILITY
PROFITABILITY
+26%
+9%-24%
-11%
Basket of indicators:
EBIT Margin, Net Profit Margin
Note: Chart shows average performance difference for firms in each quadrant vs. average of all large public
firms in the same industry for the 184 publicly-traded companies in our sample.
Source: George Westerman, 2016
5. Digital Supply Chains Deliver Incremental Value
17% to 64% Fewer cash conversion days
40% to 110% Higher operating margins
30% Better realization of working capital reductions
10% Increase in product availability
25+% Faster Response times to changes in market demand
Source: Boston Consulting Group, 2016
6. SILO VISIBILITY LEADS TO INEFFICIENT AND
UNPRODUCTIVE WORKFORCE
6
More than 80% of network activity resides outside the
four walls of an organization
7. JABIL’S INTELLIGENT DIGITAL SUPPLY CHAIN
SOLUTIONS
7
Advanced Analytics, Visibility, and Orchestration tool
set
8. OUR VALUE MAP and Work Flows
NPI& Design
Supply Chain
Architecture
Demand
Management
Materials
Management
Production
Fulfillment &
Logistics
Supply Chain
Management
Improved Visibility
Cross-Functional Collaboration
Better Alignment to the
Supply Chain
Improved
Forecast
Accuracy
Optimized Inventory and Reduced Costs
Assurance of
Supply
Faster Time to Market
Service Level
Attainment
On Time Delivery Reduced Risk
Improved Supplier Partnerships
and Leverage
Reduced Shortages
Faster Response to Supply
Chain Disruptions
Reduced
Obsolescence
Risk Mitigation Improved Efficiency and Reduction of Manual Processing
Improved Supply
Chain Flexibility
and Agility
9. JABIL’S APPROACH TO DIGITAL SUPPLY
CHAIN
JABIL’S CONTROL TOWER CENTERS. WHERE CUSTOMERS SEE
VALUE™
VISIBILITY CLOUD AND MOBILITY
CROSS-FUNCTIONAL
INTELLIGENCE
EMBRACING COMPLEXITY
Because it continues to be the
foundational supply chain
challenge
Because supply chains are
evolving into complex
ecosystems
Because supply chains
operate in silos
Because supply chains
are dynamic
10. Procurement
Intelligence / Expertise
360-degree intelligence across markets, applications, technologies and geographies
driving daily market insights and strategic technology and supplier expertise for cost
model and leadership benchmarking
Risk Management Alerts & notifications, actionable insights, proactive prevention, supply continuity
Tools
Workflow design and management, network design, performance benchmarking,
scenario planning, end-to-end visibility
Global
Intelligence
Global knowledge base – markets & technology, procurement intelligence platform,
product lifecycle management
Operational
Expertise
Physical supply chain management, domain expertise, logistics optimization,
professional procurement, supplier relationship management
Speed, Flexibility and
Scalability
Enhanced responsiveness, postponement, maximum efficiency
on a global footprint, NPI to legacy
Visibility & Analytics
(inControlTM)
Providing visibility & analytics to design, control and manage your supply chain for
maximum flexibility and efficiency
Integrated supply chain solutions to provide – End-to-End Visibility, Intelligence & Execution
SUPPLY CHAIN FOR THE DIGITAL ECONOMY
JABIL'S INTELLIGENT DIGITAL SUPPLY CHAIN
11. Develop a Digital Vision Checklist –
Familiarize yourself with new digital practices that can
be an opportunity or threat
Identify bottlenecks (in your company and in your
customers), that have resulted from the limits of old
technologies and consider how to resolve digitally
Consider which of your strategic assets will remain
valuable in the digital era
Craft a compelling and transformative
“digital vision”
Make your digital vision specific enough to give
employees clear direction, while giving them the
flexibility to build on it
Constantly look to extend your vision using capabilities
you have created
CALL TO ACTION!
Source: Leading Digital – Turning Technology into Business Transformation 2014
12. SUMMARY
The Digital Era is upon us – don’t be left behind
Jabil’s Intelligent Digital Supply Chain Solution
Digital Landscape and next steps