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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 IndustriesReal 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