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The Services Research Company
Charles SutherlandChief Research [email protected]
HfS Blueprint Report
Supply Chain Management As-a-ServiceExcerpt for Accenture
March 2016
Proprietary Page12016 HfSResearch Ltd. Excerpt for Accenture
TOPIC PAGE
ExecutiveSummary 2
SupplyChainManagementAs-a-Service 7
Research Methodology 23
KeyMarketDynamics 28
ServiceProviderGrid 32
ServiceProviderProfile 37
Market Wrap-UpandRecommendations 39
About theAuthor 44
Table of Contents
Executive Summary
Proprietary Page32016 HfSResearch Ltd. Excerpt for Accenture
Introduction to the HfS Blueprint Report: Supply Chain Management (SCM) As-a-Service
n SupplyChainManagementAs-a-ServiceHfSBlueprintReportisanewlookattheevolvingmarketforsupplychainmanagementservices.ThisBlueprintbuildsontheinitialSupplyChainManagementBPOHfSBlueprintof2014tolookingreaterdetailattheadoptionofthe8IdealsofAs-a-Servicedeliveryinthisfast-movingandcriticalbusinessfunction.
n TheHfSBlueprintnowincludesprofilesandassessmentsof14serviceprovidersofSupplyChainManagementAs-a-Service.Forthefirsttime,arvato,BrightstarandHCLareincluded.
n Unlikeotherquadrantsandmatrices,theHfSBlueprintidentifiesrelevantdifferentialsbetweenserviceprovidersacrossanumberoffacetsintwomaincategories:innovationandexecution.
n Forthis2016report,HfShasincreasedtheattentionpaidtoinnovationcriteriainparticularandadoptedthenew2016BlueprintGridlayouttoassessserviceproviders.ThisGridnowrecognizesup-and-comingserviceproviders(HighPotentials)thatarescoringhigheroninnovationcriteriathanonexecutioncriteriaastheprovidersbuildthesepractices.TheGridincludesanewgroupofestablished,high-executionserviceproviders(ExecutionPowerhouses)thathavebuilteffectivedeliveryoperationsbutneedtoinnovatecapabilitiesandofferingsfurther.Theyareinadditiontothepre-existingrankingsforhighestoverallperformance(WinnersCircle)andstrongcombinedinnovationandexecutionperformance(HighPerformers).
Proprietary Page42016 HfSResearch Ltd. Excerpt for Accenture
HfS Definition: The Supply Chain Services Value Chain
Mature Competitivemarketwithexamplesofserviceofferingsandcustomercasestudiesfromalargenumberofserviceproviders
Nascent Marketindevelopmentwithlimitedexamplesofserviceofferingsandcustomercasestudies
OrderManagement
InventoryManagement
ManufacturingManagement
TransportationManagement
AftermarketServices
MasterDataManagement
SustainabilityServices
OrderEntryInventory
StrategyandForecasting
ManagingMaterialsFlow
ShippingandFreightRequests
RMAManagement Creation
CarbonFootprint
Management
OrderMaintenance
InventoryReporting
LongTermCapacityPlanning
TransportationStrategy
ApprovingReturns Cleansing
GreenSupplyChain
Management
OrderReporting ReplenishmentOrderingCarrier
ManagementCustomerService Optimization
Forecasting SparePartsPlanning Operatinga4PLWarranty
Management Reporting
DemandPlanningandPromotion
Management
CFPRAcrossClients
TransportationPlanning
Control TowerServices
Order Analytics InventoryAnalyticsManufacturing
AnalyticsTransportation
AnalyticsAftermarketAnalytics
SustainabilityAnalytics
Proprietary Page52016 HfSResearch Ltd. Excerpt for Accenture
Key Highlights State of the SCM As-a-Service Marketn Fast Growing but Still Tiny Market. Our research indicates that Supply Chain Management (SCM)
was one of the strongest areas of BPO/As-a-Service market growth in 2014-2015. All of the serviceproviders in this Blueprint have been growing SCM much faster than their overall portfolio, and yetthe total market remains small at ~$1.8 billion ACV.
n A Heterogeneous and Slowly Evolving Offering. Most of the 14 service providers covered in thisBlueprint have a unique set of offerings and capabilities for addressing clients needs. Some focusspecifically on an industry, others focus on consulting-led delivery and client development whileothers lead with analytics or from a transactional approach built on order management oraftermarket services. Since our 2014 Blueprint, several service providers have added new valuechain component capabilities, but overall, the differences in offerings between the serviceproviders remain significant.
n As-a-Service Is the Model. As-a-Service has been part of SCM services since its inception. Inparticular, service providers have acted as Brokers of Capability partnering with enterpriseclients to identify operational issues and then bring the required insights and talent to improvebusiness outcomes. In the last several years, the availability of deeper analytical talent, digitalplatforms and design thinking approaches has moved this market even further through the As-a-Service model.
n IoT, Intelligent Automation and Design Thinking All on the Rise. For all the change thus far, SupplyChain Management As-a-Service will evolve even faster in the next few years. The deployment ofIoT, the widespread adoption of intelligent automation and the growing utilization of designthinking will lead to significant advances in this offering in thenear term.
Proprietary Page62016 HfSResearch Ltd. Excerpt for Accenture
Supply Chain Services Is an Under-Penetrated Market
$3TrillionSupplyChainCostBaseintheGlobal2000(e.g.,BFSI)
SCMBPOCanImpact10%of
SupplyChainCostBase
$300BillionPotentialSCMBPOMarket
CurrentSize~0.6%
Or$1.8Bn
~$55BillionPotentialSCMBPOMarket
CurrentSize~0.8%or$0.4Bn
InContrast:HR~11%F&A~8%Proc~3%
AftermarketSpecific
Up20%yoy!
Supply Chain Management As-a-Service
2016 HfSResearch Ltd. Excerpt for Accenture
TOOLS/INFRASTRUCTURE GOVERNANCE
Welcome to the As-a-Service EconomyHfSusesthewordeconomytoemphasizethattheemergingnextphaseofoutsourcingisamoreflexible,outcomefocusedwayofengagingandmanagingresourcestodeliverservices.OperatingintheAs-a-ServiceEconomymeansarchitectinguseofincreasinglymatureoperatingmodels,enablingtechnologiesandtalenttodrivetargetedbusinessoutcomes.Thefocusisonvaluetotheconsumer.
I.THEOPTIMUMOPERATINGMODEL
Outsourcing|SharedServicesGBS|BPaaS/SaaS/IaaS|Crowdsourcing
II.EMPOWERINGTALENTTOMAKEITALL
POSSIBLECapabilitiesoverSkills|
DefiningOutcomes|Creativity|DataScience
IV.TECHNOLOGYTOAUGMENTKNOWLEDGELABOR
Digitization&RoboticAutomation|Analytics|Mobility|SocialMedia|CognitiveComputing
III.ABURNINGPLATFORMFORCHANGE
GlobalizationofLabor|High-growthEmergingMarkets|
DisruptiveBusinessModels|Consumerization
AS-A-SERVICEECONOMY
Agility|CollaborationOne-to-Many|OutcomeFocus
Plug-and-PlayServices
2016 HfSResearch Ltd. Excerpt for Accenture
FixedAssetsLeveragedAssets
2DesignThinking
3BrokersofCapability
1WriteOffLegacy
4CollaborativeEngagement
7HolisticSecurity
5IntelligentAutomation 6
Accessibleand
ActionableData
8PlugandPlay
DigitalServices
SOLUTIONIdeals
LEGACYECONOMY
AS-A-SERVICEECONOMYCHANGEMGMT
Ideals
MovingintotheAs-a-ServiceEconomymeanschangingthenatureandfocusofengagementbetweenenterprisebuyers,serviceprovidersandadvisors
As-a-Serviceunleashespeopletalenttodrivenewvaluethroughsmartertechnologyandautomation
Journey to the As-a-Service Economy
Proprietary Page102016 HfSResearch Ltd. Excerpt for Accenture
How As-a-Service Is Taking Shape in SCM: Writing Off Legacy
Legacytechnologyandphysicaldistributioninvestments thatlimitagilityandcreate exceptionsaddressedthrough
addinginternalandexternalFTEs
Usingplatform-basedsolutions,DevOpsandAPIecosystemsformoreagile,fewerexception-orientedsystems
Writing Off Legacy for enterprises and service providers in Supply Chain Management As-a-Service is still largely inthe Initial phase. Solutions generally include incremental technology or capabilities (e.g., control tower)designed to work around or integrate with existing physical and technological investments. Most enterprises areheavily invested in their ERP or specific SCM platforms (having typically rolled them out in the last 5-15 years) anddont yet see a viable alternative around which to build for the future.
Examples: Accenture is working to develop and implement platforms that sit around and on top of a clients legacy supply
chain system of record. The Accenture platform pulls data in real time, runs the analysis and then identifiesactions for the service provider teams to execute. Then, over time, the legacy platform becomes a data repositorythat can be written off in the future as the data and execution environment moves into the cloud.
OnProcess offers a similar model of engagement in which managed services are delivered by OnProcesstechnologies that increasingly make the clients legacy systems of record redundant. Clients are still maintainingthose systems of record for the moment but are relying on OnProcess to use the platforms to manage workflow,delivery services, provide visibility into operations and outcomesand be the analytics platform for the processes.
Proprietary Page112016 HfSResearch Ltd. Excerpt for Accenture
How As-a-Service Is Taking Shape in SCM: Design Thinking
Resolvingproblemsbylookingfirstattheprocessasthesourceofthesolution
Understandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds
Enterprise supply chains are continually changing as a result of new product and service releases, sourcing andmanufacturing decisions and shifts in customer demand and expectations. Effective enterprises and serviceproviders are using Design Thinking approaches (they do not always call thesemethodologies design thinking) toreimagine supply chain processes and systems so that they effectively respond to business challenges. Designthinking is actually quite Expansive in its penetration of Supply Chain Management As-a-Service even if thatisnt formally recognized today.
Examples: Infosys has put design thinking at the heart of the companys strategy for developing solutions and managing
client relationships. HfS is starting to see evidence of design thinking approaches being brought to new supplychain management clients and longstanding clients where process solutions need a revamp.
Wipro provides an example of a service provider that has been utilizing design thinking methodologies withoutcalling them that to look at business issues for order management clients. The consultative nature of manysupply chain management engagements has meant that many service providers start client dialogues byunderstanding the underlying business context in a way that was not as prevalent in F&A or other back-officeprocess areas in recent years.
Proprietary Page122016 HfSResearch Ltd. Excerpt for Accenture
How As-a-Service Is Taking Shape in SCM: Brokers of Capability
Focusinggovernanceandoperationsstaffonmanagingtotheletterofthecontractandthedecimalpointsofservice levels
Orientinggovernancetosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps
Brokers of capability are the professionals in supply chain management who can look outside the process forcurrent and anticipated needs to deliver business results, and manages to those outcomes that may or may notbe included as KPIs specific to the engagement. This ability can be especially useful in supporting supply chainmanagement processes where there are complex ecosystems and the needs of any given enterprise are not wellunderstood at a particular time and may be highly volatile as well. We see them as an Extensively availableIdeal in todays market.
Examples: HAVI GS provides clients with a wide breadth of expertise in support of the daily operations of the client
business. These capabilities are captured in detailed solution roadmaps that align with client requirements andidentified business outcomes over time. With a deep understanding of the Quick Service Restaurant industryand what it takes to scale operations, HAVI GS anticipates the future capabilities needs of growing clients andshares practices fromclients that have been there before.
Brightstar also builds on a very broad and pervasive presence in thewireless industry to create solution sets thataddress the evolving capability needs of various client segments (Tier I/II/III operators, virtual start-ups, retailersand more). Having the pulse of the industry and its evolution allows Brightstar to respond in an agile manner toclients capability requirements beforethey mayeven have been formally identified.
Proprietary Page132016 HfSResearch Ltd. Excerpt for Accenture
How As-a-Service Is Taking Shape in SCM: Collaborative Engagement
The key to a sustainable outsourcing engagement is collaboration, working together to produce a result.Traditionally, business process outsourcing work has been directive from service buyers to service providers andmanaged strictly by procurement organizations. As more business units and global shared services centers takeresponsibility for relationships, HfS is seeing a move over time to more collaboration where trust and experienceare in place, often through shared outcomes and results. The adoption of practices of collaborative engagementis Extensive in SCM today as a response to the orientation of the market toward solving challenging businessissues and is not a simple cost or efficiency play.
Examples: TCS employs a three-level model of collaborative engagement with strategic discussions at the senior
management level, tactical collaboration between operational managers (supported by a Customer EngagementPortal) and operational reviews at the day-to-day level.
Collaborative engagement occurs not just in the course of daily operations and quarterly business reviews butalso by the provisioning of customer-service provider events throughout the year in a way that creates anongoing dialogue between all parties. Arvato is very active in this regard hosting multiple events every yearranging from focused customer workshops to end customer panels and focus groups, client days and masterclasses, all of which are intended to encourage development and sharing of expertise.
Evaluatingrelationshipsonbaselinesofcost,effortandlabor
Ensuringrelationshipsarecontractedtodrivesustainedexpertiseandoutcomes
Proprietary Page142016 HfSResearch Ltd. Excerpt for Accenture
How As-a-Service Is Taking Shape in SCM: Intelligent Automation
Operatingfragmentedprocessesacrossmultipletechnologieswithsignificant
manualinterventions
Usingofautomationandcognitivecomputingtoblendanalytics,talentandtechnology
Intelligent Automationsoftware used to do rules-defined tasksis very prevalent in the physical elements ofsupply chain management today (e.g., robotic pickers, automated conveyor belts). However, what HfS termsIntelligent Automation extending software automation across processes and bringing in natural languageprocessing and machine learning has only an Initial foothold in business process operations support for supplychain management. There are real opportunities, especially in order management, aftermarket services andmaster data management, to use technologies such as robotic process automation (RPA) to improve quality andreduce time to throughput leading to a reduction in the headcount invested in routine tasks.
Examples: Genpact uses a Supply Chain System of Engagement (SoE) approach to put RPA into the heart of operations,
bringing together siloed applications with a workflow system, a rules engine and a user interface. This approachto support rapid automation in supply chain processes enables the service provider to focus morewhere humantalent is deployed and reduce the risks of transactional errors.
HCL uses its Toscana RPA suite to automate previously manually performed tasks such as data digitization anddata entry across supply chain processes. By focusing on automating key processes and sub-processes (and notall supply chain processes are suitable for RPA), HCL builds a supply chain practice at speed and concentrates onrecruiting only the talent types that are in high demand by clients today and for tomorrow.
Proprietary Page152016 HfSResearch Ltd. Excerpt for Accenture
How As-a-Service Is Taking Shape in SCM: Accessible and Actionable Data
Performingad-hocanalysisonunstructureddatawithlittleintegrationor
businesscontext
Applyinganalyticstechnologies,processesandresourcestorelevantdatasetstoderiveinsightsthatcanhelpimproveanenterprise
Taking advantage of Accessible and Actionable Data is at the very heart of Supply Chain Management As-a-Service operations. Although there are substantial transactional processes within SCM, the heart of the valueproposition for most service providers comes from aggregating data across a process and then deriving insightsthat either the service provider and/or the enterprise can act upon to improve the business. This Ideal isExtensive in its application within the current Supply Chain Management As-a-Servicemarket.
Examples: Service providers such as EXL employ a two-pronged strategy for making data accessible and actionable for
clients. The first prong is to embed analytical team members in all supply chain engagements whose role is tocapture relevant data and then to make it effective for clients. The second prong is to identify services built onpreviously inaccessible or un-actionable data in the supply chain and then make that data available in focusedservice offerings, suchas fuel optimization, lane optimization and more.
WNS employs a similar model and uses analytical dashboards similar to other service providers to highlight thekey data sets that drivemeaningful insights that either the service provider or the client can take action to driveimmediate business outcomes.
Proprietary Page162016 HfSResearch Ltd. Excerpt for Accenture
Analytics in Supply Chain Management As-a-Service
OrderAnalytics
Forecasting&DemandPlanning
PromotionalAnalytics
OrderFillAnalytics
CosttoServeAnalytics
ServiceLevelOptimization
RevenueLeakageorFraudAnalytics
AllcomponentsoftheSCMvaluechain haveananalytics capability orsub-process. MasterDataManagementis anenabler foranalytics inSupplyChainManagementAs-a-Service.
InventoryAnalytics
InventoryCostOptimization
SafetyStockRecommendation
SKULevelInventoryOptimization
InventoryDeploymentOptimization
WorkingCapitalAnalytics
Write-OffModeling
Aged&SlowMovingAnalytics
ManufacturingAnalytics
CapacityOptimization
ProductionPlanning&Scheduling
LineLoading&LineBalancing
AssetOptimization&Disposition
PredictiveMaintenanceAnalytics
MaterialPlanning CosttoManufactureAnalytics
TransportationAnalytics
ShipmentSchedulingOptimization
RouteOptimization
FreightCostOptimization
WarehouseAnalytics
FleetModelling FreightMeasurementAnalytics
PredictiveFleetMaintenanceAnalytics
DistributionAnalytics
AftermarketAnalytics
PredictivePartsForecasting
StockingStrategy WarrantyAnalytics
CustomerSatisfactionAnalytics
ForwardLocation ServicesPlanning ReliabilityAnalytics&PartFailureRateModeling
ReturnLogisticAnalysis
FieldForceAnalytics
SustainabilityAnalytics
EnergyOptimization&Analytics
CarbonFootprintAnalytics
GreenHouseGas(GHG)EmissionAnalytics
GreenRouting LifecycleWaterUsageAnalytics
Regulatory&EnvironmentalComplianceAnalytics
OrderManagement
InventoryManagement
ManufacturingManagement
TransportationManagement
AftermarketServices
SustainabilityServices
MasterDataManagement
Proprietary Page172016 HfSResearch Ltd. Excerpt for Accenture
How As-a-Service Is Taking Shape in SCM: Holistic Security
Respondingreactivelywithpost-eventfixes.Little focusonend-to-endprocess
valuechains
Proactivelymanagingdigitaldataacrossservicechainofpeople,systemsandprocesses
Holistic Security is the most over-looked or ignored As-a-Service Ideal today in supply chain management. Inmany cases, just building a view of an end-to-end supply chain has proven (or is proving) to be a challengingundertaking. Thus, stepping back to think about how to surround that supply chain and the processes withholistic data security is largely nonexistent from HfSs perspective. That does not mean there is no data securityin Supply Chain Management As-a-Service; instead, the approach is siloed and sub-optimal, and there is much tobe done toput in place a security environment forsupply chain data and insights that works forall participants.
Example: Perhaps because of arvatos greater exposure to the fulfillment management elements of Supply Chain
Management As-a-Service, HfS saw from arvato more of an awareness of what the opportunities and issues arefor holistic and physical security management than from other service providers. With a view to the needs ofmanaging physical and data security for supply chain processes, arvato is showing how significant thesecapabilities will be and how it should increasingly form a central part in a Supply Chain Management As-a-Service offering vision.
Proprietary Page182016 HfSResearch Ltd. Excerpt for Accenture
How As-a-Service Is Taking Shape in SCM: Plug and Play Digital Business Services
Undertakingcomplexandoftenpainfultechnologytransitionstoreachasteady
state
Pluggingintoreadytogobusinessoutcomefocused,people,processandtechnologywithsecuritymeasures
Supply Chain Management service providers are just beginning to become partners with their clients indeveloping and deploying Plug and Play Digital Business Services. Typically, they have taken the form of controltowers or analytical applications. We see these services as being at the Initial stage of development withsignificant progress forecasted over the next few years as service providers become more comfortable withbeing platformdevelopers.
Example: Capgemini has used the Supply Chain As a Stack solution approach including control tower services and
partnered ERP platforms to offer end-to-end services for clients who wish to plug into this stack and avoid theirown additional capital or operational expenditures. This model can be used to address client concerns regardingTCO and ensure access to leading application sets that are refreshed on an ongoing basis.
Entercoms control tower services are designed to run plug and play on the cloud with little disruption to back-end IT systems. This approach of avoiding hard-wired solutions deploys applications rapidly and speeds upoutcomes.
2016 HfSResearch Ltd. Excerpt for Accenture Proprietary Page19
HfS Believes that Control Towers Are Integral to the Effective Delivery of Supply Chain Management As-a-Service
OrdersPOtoShipment
LogisticsandTransportation
AftermarketServices
ControltowersinSCMBPOcanprovidevisibilityintoorders,manufacturing,inventory,logisticsandaftermarketservicesandarecriticaltotheabilityofenterprisesandserviceproviderstodeliverSupplyChainManagementAs-a-Service.
DifferentSCMvaluechainfunctionsmayhavetheirowncontroltowers.
SCMserviceprovidersarestillbuildingtheircapabilitiesinthisarea,andseveralserviceprovidersrelyonthirdpartiesforthiscapabilityiftheyofferitatall.
Inventory
2016 HfSResearch Ltd. Excerpt for Accenture Proprietary Page20
However, Control Towers are Often Limited in Functionality Today, Thus Better Described as Visibility Towers
ModelFramework forControl Tower
CloudPlatformwith3Levels:
Level1:Providesend-to-endvisibility acrossextendedsupplychain Level2:Enablesanalyticsofdatacollected acrossextendedsupplychainwiththepossibilitytosuggestpost-eventactions
Level3:Coordinatesexecution,automation,continuousimprovementandprocessorchestrationofsupplychainprocesses
MostActivityToday
2016 HfSResearch Ltd. Excerpt for Accenture Proprietary Page21
Issues for Supply Chain Management As-a-Service Providers Todayn Supply Chain Management Executive Relationships: In 2016, service providers still may not have as developed a
relationship with supply chain executives in the enterprise as they may havewith the leaders of other functions. Asa result, supply chain management offerings may not be top of mind for the sales and account teams that arewalking the client halls each week. This creates an onus on the marketing and offering teams inside the serviceproviders to get their message out internally so that the sales teams understand what is available to address theclients business issues.
n Sole Sourcing: Many of the SCM opportunities today are sole sourced. They often grow out of consulting or SIengagements with the client that open up additional discussions of capabilities and scope. Although there aresome RFPs in the market, growing this offering at scale requires having a sales and account management capabilitythat knows what signals to listen for and how to bring the right team and response to a client that may have urgentand very specific issues in the supply chain.
n Providers and Enterprise Buyers View Offerings with a Different Starting Point: One phenomenon we saw in 2014and that continues today in SCM is that service providers often see this as a high-end offering because of the useof SMEs, transformation, analytics and platforms, but buyers often see the same solution as fitting into the lowerend of their SCM process needs. As a result, service providers need to recognize that the view from the client sidemay be different but equally valid as their own way of thinking and not to get too carried away by how leading-edgethese processes maybe.
n Channel Confusion: One issue for service providers with deep SCM consulting units is that many clientrequirements could be addressable with either BPO-based or consulting-based solutions within the boundaries ofwhat could be defined as As-a-Service. This creates channel confusion (and sometimes client confusion as well) inthe sales and solutioning process and is one of the key reasons why those service providers need to invest in strongoffering skills so that the boundaries of different possible client solutions can be shaped and well communicated toall within this broader umbrella of Supply Chain Management As-a-Service.
2016 HfSResearch Ltd. Excerpt for Accenture Proprietary Page22
More Issues for Service Providers Today
n Consolidating Order Management Capabilities: In some service providers, order management capabilities andcontracts may be found not only in supply chain but also in F&A or in industry vertical specific offerings. This doesntmean that those service providers are less capable than others, but it might mean that potential cross-clientsynergies are harder to find. It may also be true that the service provider doesnt realize the extent to which theyhave a broader order management capability (and client references) which may tell a story to the market of scaleddelivery.
n Partnership Identification andManagement:No Supply Chain Management As-a-Service providers can solve for allthe pain points of an end-to-end client supply chain in-house. In todays market, partnerships, whether fortechnology, 3PL/4PL services, inventory ownership, warehousing management or other, are an integral part ofvalue-creating solutions. SCM service providers need to invest in market intelligence to understand the potentialnew partners that are emerging (especially in digital platforms) and then have an effective program for managingthat potential relationship over time.
n The Service Provider Landscape Is Evolving: In our 2014 Blueprint, we covered 13 service providers in depth. For2016, we added three (arvato, Brightstar and HCL), but Celestica stepped back from themarket, and Tech Mahindradid not participate. This competitive landscape will continue to evolve in the years to come, and the traditionalcompetitors will not alwaysbe the challengers foreach client.
Research Methodology
Proprietary Page242016 HfSResearch Ltd. Excerpt for Accenture
Blueprint Research MethodologyDataSummaryn DatawascollectedinQ42015andQ12016,covering
buyers,providersandadvisors/influencers ofSupplyChainManagementServices.
n Morethan980datapointswerecollected,covering14majorserviceproviders.
ParticipatingServiceProviders
ThisReportIsBasedOn:
n TalesfromtheTrenches:Interviewswereconductedwithbuyerswhohaveevaluatedserviceprovidersandexperiencedtheservices.Someweresupplied byserviceproviders,butmanyinterviewswereconductedbyHfSExecutiveCouncilmembersandparticipantsinourextensivemarketresearch.
n Sell-SideExecutiveBriefings:Structureddiscussions withserviceproviderswereintendedtocollectdatanecessarytoevaluateinnovation,executionandmarketshare,anddealcounts.
n PubliclyAvailableInformation:Financialdata,websiteinformation,presentationsgivenbyseniorexecutivesandothermarketingcollateralwereevaluated.
Proprietary Page252016 HfSResearch Ltd. Excerpt for Accenture
EXECUTION 100%Quality OfServiceProvidersAccountManagementTeam 12%IncorporatingCustomerFeedbackandCollaborativelyEngage 10%WorkingWithClientsToWriteOffLegacy 12%DeliveringActualServices 28%Geographic FootprintAndScale 8%Flexibility ToDeliverEnd-to-EndAndPointSolutions 10%Becoming BrokersOfCapabilityForClients 12%Experience InDelivering Industry-SpecificSolutions 8%
INNOVATION 100%
Vision AndCommittedInvestmentsForTheEvolutionOfSupplyChainManagementServices 25%ApproachToIncreasingValueForClientsOverThe ContractLifecycle 10%ApplicationAndPlatformStrategy ForSupplyChainManagementServices 11%Solutions ForAccessibleAndActionableDataInSupplyChainManagementServices 15%ModelForTheApplicationOfIntelligentAutomationInSupplyChain Management 14%AvailabilityOfPlugAndPlayServices(e.g.,ControlTower) 15%IntegrationOfSupplyChainConsulting,BPOAndTechnologyCapabilities 10%
HfS Blueprint Scoring Percentage Breakdown
Proprietary Page262016 HfSResearch Ltd. Excerpt for Accenture
Execution DefinitionsEXECUTION Howwelldoestheserviceproviderexecuteonitscontractualagreement,andhowwelldoestheprovidermanagetheclient/providerrelationship?
QualityOfServiceProvidersAccountManagementTeam
Howengagedis theexecutiveandmanagementteamindefiningandmanagingthedeliveryofbusinessservices?
IncorporatingCustomerFeedbackAndCollaborativelyEngage
Howhas theserviceprovidertakenfeedbackandincorporateditintothesolutionanddelivery?Howwastheserviceprovidermaintainedacollaborativeengagement?
WorkingWithClients toWriteOffLegacyHow doestheserviceproviderworkwithclientstoimplementsolutionsthateitherreplaceorallowfortheoperationalandfinancialreplacementoflegacyassets,processesandculture/organizationaldesign?
DeliveringActualServices Whatarethe clientsandmarketsoverallimpressionofthequalityofserviceacrossthevaluechainfromthisserviceprovider?
GeographicFootprintAndScale Howdoesthisserviceprovideruseaglobaldeliveryfootprinttomeetclientsneeds?
Flexibility ToDeliverEnd-to-EndAndPointSolutions
Whenlookingata clientsSCM issues,cantheserviceprovideroffervarioussolutions(pointandendtoend)tocreateaflexibleandconfigurable(orcustomized)response?
BecomingBrokersOfCapabilityForClients Istheserviceproviderabletoact asadeeppartnerinmeetingclientsspecificandvariedtalentandtechnologyrequirementsovertime?
Experience InDeliveringIndustry-SpecificSolutions
Howdeep isthedomainexpertise(talentandsolutions)inunderstandingandthenaddressingindustry-specificissues?Isthisdomainexpertiselimitedtoasingleindustryvertical,orisitwidespread?Istheserviceproviderorganizedaroundindustry-specificknowledgedevelopmentanddelivery?
Proprietary Page272016 HfSResearch Ltd. Excerpt for Accenture
Innovation Definitions
INNOVATION Howwelldoestheserviceproviderinnovateitsoffering(s)inresponsetomarketdemand,clientrequirements anditsownvisionforhowtheSCMmarketwillevolve?
VisionAndCommittedInvestmentsForTheEvolutionOfSupply ChainManagementServices
Whatistheserviceprovider svision fortheevolutionofsupplychainmanagementservices?IsthereaclearstrategyfordeliveringSupplyChainManagementAs-a-Service,andarethereidentifiableinvestmentsinplacetorealizethisstrategytoday?
ApproachToIncreasingValue ForClientsOverTheContractLifecycle
Howdoestheserviceproviderviewaclientscontract?Isthereanactiveeffortonthepartoftheserviceprovidertocreatevalueyearonyearbeyondthecontractcommitments?
Application AndPlatformStrategyForSupplyChainManagementServices
Whatistheroleof applicationsandplatformsintheserviceprovider sofferingstrategy?Aretheselectedplatformsdevelopedin-house,oraretheyprovidedbythirdparties?Isthereademonstrableintenttomaintainandenhancethein-houseplatforms?
SolutionsForAccessibleAndActionableDataInSupplyChainManagementServices
How doestheserviceproviderworkwithclientstodevelopacomprehensivesetofsupplychaindataandtheninturnmaketheanalysisofthatdataandthedevelopmentofinsightspossible?Istheserviceprovideranactiveparticipantinthedevelopmentofinsightsorapassivedataprovider?Istheserviceproviderallowedbyclientstoactuponthedevelopeddatatoimprovetheeffectivenessofoverallsupplychain?
ModelForTheApplicationOfIntelligentAutomationInSupplyChainManagement
Whatistheservice provider s approachtousingintelligentautomation platforms(RPA,autonomicsandcognitive)toimprovetheefficiencyandeffectivenessofdeliveringthesupplychainprocess?Howmatureistheserviceprovider sstrategyforintelligentautomation?
AvailabilityOf DigitalPlugAndPlayServices
WhatdigitalplatformsdoestheserviceproviderusetodeliverSupplyChainManagementAs-a-Service?Aretheyintegraltotheserviceprovider soffering(s)oradd-ons?Howpervasiveistheuptakeofthesedigitalplatformsbyclientstoday?Whatistheserviceprovider sfuturedigitalplatformstrategy?
IntegrationOfSupplyChainConsulting,BPOAndTechnologyCapabilities
Howdoestheserviceprovidercombinecapabilities insupplychainconsulting,BPOoroperationaldeliveryandsupportingtechnologyintheformtocreateinnovativeSupplyChainManagementAs-a-Serviceofferings?
Key Market Dynamics
2016 HfSResearch Ltd. Excerpt for Accenture Proprietary Page29
Enterprise Pain Points Addressed by SCM As-a-Service
EnterpriseSupplyChainPainPoint
Reason(s) forPainPoint Business Impact
ProductionandInventoryWrite-offs
Lackof visibility Ineffectiveplanningandforecastingmodels Inabilitytoconvertinsightintoaction
Top- andbottom-linelosses Inventorysell-offsrequired
Lagging Benchmarks Inefficientprocesses Lack ofdataandvisibility
Excessivecostofgoods Delaysinorder managementand
delivery
Transportation Chaos Inefficientprocesses Lackofoverallvisibilityintonetworkand
opportunitiesforoptimization
Excessivetransportationcosts Delaysinorder managementand
delivery
LackofStandardization Uniqueprocessesby unitorgeography Unnecessaryoverhead Inconsistent customerexperience
UnderperformingCSATandNPSScores
Lackofstock andpoorinventoryplanning Slowsupplychainprocesses Ineffective aftermarketprocesses
Top- andbottom-linelosses Negativeonlinereviewsorwordof
mouth Customerchurnincreases
RevenueLeakage Ineffectiveordermanagementprocesses Faultydatasetsthatdontdetecterrors Undetectedfraud,waste andabuse
Top- andbottom-linelosses
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Supply Chain Management Is Beginning to Incorporate the Ideals of the As-a-Service Economy
IDEAL AS-A-SERVICEIDEALDEFINITION
NONEXISTENT INITIAL EXPANSIVE EXTENSIVE ALLPERVASIVE
WriteOffLegacyUsingplatform-basedsolutions,DevOpsandAPIecosystemsformoreagile,fewerexception-orientedsystems 2016
DesignThinkingUnderstandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds 2016
Brokers ofCapability
Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps 2016
CollaborativeEngagement
Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes 2016
IntelligentAutomation
Using automationandcognitivecomputingtoblendanalytics,talentandtechnology 2016
AccessibleandActionableData
Applyinganalyticstechnologies,processesandresourcesonrelevantdatasetstoderiveinsightsthatcanhelpimproveanenterprise 2016
HolisticSecurityProactivelymanagingdigitaldataacrossservicechainofpeople,systemsandprocesses 2016
Plug andPlayDigitalBusinessServices
Pluggingintoreadytogobusiness outcomefocused, people,processandtechnologysolutionswithsecuritymeasures 2016
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The Supply Chain Services Value Chain
Mature Competitivemarketwithexamplesofserviceofferingsandcustomercasestudiesfromalargenumberofserviceproviders
Nascent Marketindevelopmentwithlimitedexamplesofserviceofferingsandcustomercasestudies
OrderManagement
InventoryManagement
ManufacturingManagement
TransportationManagement
AftermarketServices
MasterDataManagement
SustainabilityServices
OrderEntryInventory
StrategyandForecasting
ManagingMaterialsFlow
ShippingandFreightRequests
RMAManagement Creation
CarbonFootprint
Management
OrderMaintenance
InventoryReporting
Long-termCapacityPlanning
TransportationStrategy
ApprovingReturns Cleansing
GreenSupplyChain
Management
OrderReporting ReplenishmentOrderingCarrier
ManagementCustomerService Optimization
Forecasting SparePartsPlanning Operatinga4PLWarranty
Management Reporting
DemandPlanningandPromotion
Management
CFPRAcrossClients
TransportationPlanning
Control TowerServices
Order Analytics InventoryAnalyticsManufacturing
AnalyticsTransportation
AnalyticsAftermarketAnalytics
SustainabilityAnalytics
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The Current Maturity of Service Provider SCM As-a-Service Offerings
OrderManagement
InventoryManagement
ManufacturingManagement
TransportationManagement
AftermarketServices
MasterDataManagement
SustainabilityServices
Accenture
arvato
Brightstar
Capgemini
Entercoms
EXL
Genpact
HAVIGS
HCL
Infosys
OnProcess
TCS
Wipro
WNS
LessMatureServices
MoreMatureServices
MinimalKeytoServicesMaturityontheServiceProviderProfilePages
Service Provider Grid
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TodistinguishserviceprovidersthatshowcompetitivedifferentiationinaparticularlineofdeliverywithprogressinrealizingtheAs-a-ServiceEconomyofbusinessoutcome-oriented,on-demand,talent+technologyservices,HfSawardstheseproviderstheAs-a-ServiceWinnersCircledesignation.
Guide to the Blueprint Grid
EXECUTION INNOVATION
As-a-ServiceWinners Circleshowexcellence recognizedbyclientsinthe8Idealsin executionandinnovation
Collaborative relationshipswithclients,servicesexecutedwithacombinationoftalentandtechnology asappropriate,andflexiblearrangements.
Articulatevisionandanewwayofthinking,haverecognizableinvestments infuturecapabilities and strongclientfeedbackand aredrivingnewinsights andmodels.
HighPerformersdemonstratestrongcapabilitiesyetlackaninnovativevisionormomentuminexecutingthevision
Executesomeofthe followingareaswithexcellence:worthwhilerelationshipswithclients,servicesexecutedwithgreenlightsandflexibilitywhenmeetingclientsneeds.
Typically, describeavisionandplanstoinvestinfuturecapabilitiesandpartnerships forAs-a-Service,andillustratean abilitytoleveragedigitaltechnologiesand/ordevelop newinsightswithclients.
High Potentialsdemonstratevisionandstrategybuthaveyettogainmomentuminexecuting them
Earlyresultsandproof points fromexamplesinnewserviceareasorinnovativeservicemodels,yetlackscale,broad impactandmomentuminthecapabilityunder review.
Well-plotted strategyandthoughtleadership,showcaseduseofnewertechnologiesand/orroadmapandtalentdevelopmentplans.
ExecutionPowerhousesdemonstratesolid,reliableexecution,buthaveyet toshowsignificantinnovation orvision
Evidence ofoperationalexcellence;however, stillmoreofadirectiveengagementbetweenserviceprovider anditsclients.
Lack ofevidentvisionandinvestmentinfuture-oriented capability,suchasskillsdevelopment, intelligentoperationsordigitaltechnologies.
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INNOVA
TION
EXECUTION
ExcellentatInnovationandExecutionInvestinginInnovationtoChange
BuildingAllCapabilities ExecutionIsAheadofInnovation
AS-A-SERVICEWINNERSCIRCLE
EXECUTIONPOWERHOUSES
HIGHPOTENTIALS
HIGHPERFORMERS
HfS Blueprint Grid: Supply Chain Management As-A-Service
Wipro
Genpact
AccentureHAVIGS
InfosysTCSWNS
CapgeminiHCL
Entercoms
Brightstar
OnProcessarvato
EXL
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Major Service Provider Dynamics: Highlights
EXECUTION
ActualDeliveryofServices:Poorlydeliveredsupplychainprocessescandramaticallyimpacttheenterprisestop- andbottom-lineperformance.ThevalueplacedonexcellentservicedeliverywasevengreaterforthisBlueprintthanin2014.FeedbackondeliveryexcellencehasimprovedacrosstheboardbutwasespeciallypositivefortheserviceprovidersintheAs-a-ServiceWinnersCircle.
BrokersofCapability:Enterpriseclientsarebecomingmuchmoredemandinginthetypeofrolesandskillstheywanttoacquirefromserviceprovidersinsupplychainprocesses.Thedaysoflargetransactionalteamsourcingarewaningandarebeingreplacedbyagileskillsourcing.Serviceproviders,includingarvato,InfosysandTCS,areadaptingtothisnewdynamicbydiversifyingtheirskillsofferingandbuildingmoreflexiblecommercialstructurestoprovideaccesstotalenttoleadingclients.
Industry-SpecificCapabilities:Thevalueofdeepindustrydomainexpertiseinsupplychainmanagementiscomingthroughfrominterviewswithclientsandmarketshapers.arvato,BrightstarandHAVIGSleadthewayhere,butEntercoms,OnProcessandothersaresteppingupindustryinvestments,andEXLandWNSarefocusingonlogisticsandtransportationclientneeds.
INNOVATION
CreatingaVisionforSupplyChainManagementAs-a-Service:As-a-Servicehasalwaysbeenapartofthesupplychainmanagementmarket,buttheinvestmentinassetsandchangesincommercialmodelstosupportthissincethelastBlueprinthasbeenpronounced.Accenture,Genpact,HAVIGSandOnProcessstandoutinparticularfortheeffortsthathavebeenmadehereinthelasttwoyears.
IntroducingIntelligentAutomationintoSupplyChain:RPAandcognitivearestillrelativelynewinsupplychainprocesses,butHfSexpectsthemtobecomemuchmoremainstreamcapabilitiesinthenextfewyears.ForthisBlueprint,theeffortsofseveralserviceprovidersstoodoutinparticular,includingCapgemini,Genpact,HCL,Infosys,TCSandWipro.
EnhancingControlTowerSolutions:Controltowersolutionswereoneofthekeydifferentiatorsbetweenserviceprovidersinour2014Blueprint.ThisplatformhasbecomeevenmoresophisticatedoverthelasttwoyearsandisintegraltothestrategiesandofferingsofserviceproviderssuchasAccenture,arvato,Capgemini,Entercoms,GenpactandOnProcess.
CoordinatedTalent:EffectiveSupplyChainManagementAs-a-Servicedeliveryrequiresmorethanjusttransactionallabor.Severalserviceproviders,includingAccenture,arvatoandHCL,areshowinghowtocoordinatedifferenttalentsetsacrossconsulting,operationsandtechnologytoserviceclientsbetter.
Service Provider Profiles
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Accenture MakingsubstantialinvestmentsinSupplyChainManagementServicestodriveanalyticalsolutionsandrespondtotheneedsofglobalclients
Winners Circle
RelevantAcquisitions/Partnerships KeyClients GlobalOperations ProprietaryTechnologies/Platforms
Acquisitions: Gapso (2015) The Javelin Group (2015) EliteLogistics (2015)Partnerships: SAP Oracle Kinaxis GTNexus Maximo Ariba Servigistics Llamasoft Qlik
55+major SCMBPO clients, including:
DigitalMedia Technology Company Global Automobile Manufacturer Global Consumer Food Producer GlobalMobile Phone Manufacturer Communications and ITProvider North American Retailer European Consumer Electronics
Company Japanese Consumer Electronics
Company
Locations: 2,000+ SCM BPO FTEsacross~14 SCMBPO locations withadditionalsupport from 35+ other BPO centersglobally:
North America 300+ FTEs Europe 500+FTEs APAC1200+ FTEs
Accenture operates 2SCM BPO Centersof Excellence where newofferings aredeveloped. They areinBarcelona, Spain,andMumbai, India.
Application Store:platform for accessing 25+supply chainanalytics relatedapplications
Accenture Supply Chain Control Tower: 3-levelframework forintegratingsupply chain datawithprocess executioncapabilities
ASCAF:asupply chain analytics framework i-POT: Inventory planning and optimization tool Warehouse Productivity Tool: forwarehouse network analysis
and optimization Warehouse Reserve Tool: tohelp clients provision warranty
reserves and identify cost claims reduction opportunities Accenture Operations Navigator: one-stop portalfor
operational performance and business process datavisibility
OrderManagement
InventoryManagement
Manufacturing Management
Transportation Management
AftermarketServices
Master DataManagement
SustainabilityServices
Strengths Challenges
Investments inSupply ChainManagement Services: Accenture Operations hasstepped up itsinvestment insupply chainmanagement services considerably sincethe2014 Blueprint inwhich Accenture wasalreadythe leader.The development of across-client analytics application infrastructure isparticularly noteworthy asitreplicates best practices intools and insights atscale. Clientswespokewithareimpressed by theseinvestments and see thedirect business impact of these tools onprocess operations.
Expanding RoleIn Client Supply Chain Operations: HfS has seen theoffering evolveoverthe lastsevenyears from acollection of smallforecasting contracts withafewlarge-scale ordermanagement deals toone thattakeson on comprehensive scopefrom clients across the SCMvaluechain. Accenture isexpanding itsroleinclientsacross processes inawaythatHfS hasnot seenwithmany of the othercompetingservice providers. This isespecially evident intherelationship withakeyNorthAmerican retailer.Accenture isnow attheverycoreof daily operations versushavingstartedin aniche support roleyears ago.
Integration ofConsulting, BPO and Technology inSCM: Inthe 2014 Blueprint, wehighlighted some of the channel and deliveryconflict between BPO and Consulting inSCM. Sincethen,wehave seen substantial progress ineliminating conflict and gettingsynergistic value outof organic investments (e.g., tools) andM&Aactivitybetweenthegroups. Thisintegration is increasingly important intheAs-a-Service evolution ofSCM, andAccenture seems tobe responding as required bythemarket.
Cross Client Intelligent Automation: HfSwould liketoseethesame levelof cross-client capability for intelligentautomation (RPA, autonomics and cognitive) in supply chainthatwehave seen emerge inanalytics insupply chain since2014. Accenture Operations hasdeployed significantnumbers of software bots insupply chain contracts, butthesebots aregenerallyclient specific and atthedesktop level.This isinkeepingwithindustry norms, but asAccenture isaleaderwithvision inthismarket, HfS expects Accenture toalso leadin thisarea.
Integration With IoTOfferings: If theInternet of Things (IoT)takesoff inanyform, which has been predicted bymany, itwillbecome acritical component of future SCMBPO delivery.HfSwould liketohearmore fromAccenture about how theIoT capabilities inside Accenture DigitalwillbeintegratedwithAccenture Operations torespond totheneeds ofthelargestglobal enterprises.
BlueprintLeadingHighlights
Actual DeliveryOf Services Flexibility InDelivering End-to-End
and Point Solutions Vision ForEvolutionOf Supply
ChainManagement As-a-Service Solutions ForAccessible And
Actionable Data Integration of Consulting, BPO And
Technology
Market Wrap-Up and Recommendations
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Where to Next for SCM As-a-Service
n Analyticsofferingswillevolvefrombeingbasedlargelyonaccesstodatasciencetalentanduniquealgorithmsandwillincludespecificanalyticalapplicationsdeliveredbyserviceproviders thatdeeplyunderstandaclientsenterpriseandmarketplace
n Intelligentautomationand,inparticular,roboticprocessautomation (RPA)willbecomedeeplyintegratedintoordermanagementprocessesreducingthesizeofcurrentlaborarbitragecentriccontracts
n Enterprisesandserviceproviderswillallowsupplychainprocessestobeadaptedtoallowactiveintervention insupplychaintransactionsasaresultoftheinsightsandvisibilityprovidedbymorewidelyimplementedcontroltowersolutions
n TheincreasingadoptionoftheIoTwillresultinnewdatasetsforSCMcontrol towerstoincorporateandwillforceafundamental re-thinkingoftheaftermarketservicesindustryandwhatcapabilitiesamanufacturer(andtheserviceproviders) shouldoffertoendcustomers
n 3Dprintingwillbecomemorewidelyadoptedallowingenterprisestorethinktheirsupplychainsandputoriginalandaftermarketproductsclosertothecustomerwithknock-onimpactsoncurrentsupplychainprocesses
WeseethefollowingasthemajortrendsthatwillfosterthefutureevolutionofSupplyChainManagementAs-a-Serviceoverthenext23years:
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Supply Chain Management Will More Extensively Incorporate the Ideals of the As-a-Service Economy
IDEAL AS-A-SERVICEIDEALDEFINITION
NONEXISTENT INITIAL EXPANSIVE EXTENSIVE ALLPERVASIVE
WriteOffLegacyUsingplatform-basedsolutions,DevOpsandAPIecosystemsformoreagile,fewerexception-orientedsystems 2016 2019
DesignThinkingUnderstandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds 2016 2019
Brokers ofCapability
Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps
20162019
CollaborativeEngagement
Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes 2016 2019
IntelligentAutomation
Using automationandcognitivecomputingtoblendanalytics,talentandtechnology 2016 2019
AccessibleandActionableData
Applyinganalyticstechnologies,processesandresourcesonrelevantdatasetstoderiveinsightsthatcanhelpimproveanenterprise 2016 2019
HolisticSecurityProactivelymanagingdigitaldataacrossservicechainofpeople,systemsandprocesses 2016 2019
Plug andPlayDigitalBusinessServices
Pluggingintoreadytogobusiness outcomefocused, people,processandtechnologysolutionswithsecuritymeasures 2016 2019
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2016-17 Recommendations: Enterprise Buyers
n MoveFasterandDeepertoAs-a-ServiceOfferingsfromServiceProviders.Asanenterprise buyerkeeppushingyourservice provider(s)tomovetoanAs-a-Service model thatgoesbeyondlaborarbitrage toinclude andofferyouabroadersetofchoices forwhatsolutionsyouadoptandhowtheyinteract withyourownretained organization.Dontsettle foralong-term fixedmodelofsolutiondelivery forsupplychainservices, butpushyourservice provider(s)tobeflexible andagile sothatfutureservices offeringsbetteralign toyourownpotential futureneeds.
n AdoptDesignThinking. Dontdismissdesignthinking assomething thatisafadwithlittle benefit foryourownoperations.Theopportunities tositdownwithyourservice provider(s)tobetterunderstand thebusinesscontext inwhichyourcurrentprocessesoperateandwhatcanbedonetorealign orreimaginetheseprocesses toachieve differentand/orbetter results isalwaysanexercise worthundertaking.
n Test3DPrintingand IoTImplications. Askyourservice provider(s)forinsight intohow3Dprinting, theIoTandother innovationsare likely toimpact thesupplychainprocessesyouhaveinplace todaywhether theservice providerdelivers themornot.Usequarterly businessreviews (QBRs)andotherinteractions withyourservice provider(s)toreviewtheirvisionfortheevolutionofsupplychainmanagement.
n IncreasetheTrust.Pushyourservice provider(s)tobemorecollaborative, morevisionary,moreinclusive andsharewithyou.Inturn,provide thatsameapproach totheservice provider(s).Extend thissamenewmindset tohowyouthinkofdataandphysical security tomakesurethatyourpolicies onsecurity arentcomingwithunnecessary coststoyoursupplychain.Addresstheenterprise painpointsofsupplychainandrealize theresulting businessoutcomesiseasier inaclosepartnership thaninaclosed-offzero-summindsetrelationship. So,workwithyourservice provider(s)inamanner thatfacilitates long-termsuccessaswellandaskforitinreturn.
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2016-17 Recommendations: Service Providers
n MoveFurthertoAs-a-ServiceOfferingDesignandExecution.AtHfS, wearestrongbelievers intherapidmoveofBPOawayfromlegacyliftandshiftmodels towardanAs-a-Service solutiondesignanddeliveryworld.This isespecially trueforsupplychain,whichhasalwayshadsomeembodiment ofthe8IdealsofAs-a-Service inhowservice providershavesoldanddelivered theoffering.Thatsaid,there isstill significantopportunity tomovethis furtherforwardandbringamoremodularyetend-to-endsolutionstackforsupplychain intotheenterprise client sothatthere istighter integration between theservice providercapabilitiesandthoseofthe retainedorganization thanwehaveseenthusfar.
n AskforControl.Service providershavebeenimplementing controltowersolutionsnowforseveralyears, butinmanycases,these toolsarebeingusedforgreater visibility insteadofasameans tointervene inerrantsupplychainprocesses. Itstime tostepupandmoveinthese instances fromvisibility toactive intervention,andthatrequiresasking forthiscontrolandadapting theprocessesandgovernance tosupportthischange.
n ImplementRoboticProcessAutomation intheSupplyChain.Roboticprocessautomation (RPA)iscertainlythetopicofthemoment inprocessdelivery circles,butoutsidesomeordermanagement andaftermarketprocesses, theapplication ofRPAinsideend-to-endsupplychainprocesses remains limited. HfSbelieves thatRPAisameans toanendforsupplychaindelivery bydecoupling laborandgrowth,especially intransactional support,andservice providers thatadoptthese technologies extensively willhavealegupforthenext fewyears.
n PreparefortheRiseoftheIoTand3DPrinting.Theymightnotbemainstream technologies atthestartof2016,but3DprintingandtheIoTarebecoming thatway.Research labs, consulting teamsandSIunitsinsideeachmajorservice providerareworkingwithclients aroundthese technologies today.However,the lessonslearnedmaynotyethavemadetheirwayovertothesupplychainmanagement grouprunningday-to-dayoperations.Putaside investment fundsthisyeartoencourage thatcollaboration sothatasaservice provideryoucansharethesesame insightswithclientsandimplement design thinkingsessionstounderstandwhatthepositive (andnegative) impactswillbeforclientoperations.
About the Author
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Charles SutherlandChiefResearchOfficer,HfSResearch Dallas,TX
Overview Overseestheresearchagenda andtheanalystteamforHfSacrosstheAs-a-Service
Economy Personallycoverstheareasofdigitalservices, intelligent automation andbusiness
platforms,aswellasthesupplychainandprocurement businessfunctions. Overamorethan25-yearcareerhasfocusedonhispersonalskillsinauthoringthought
leadership,developing implementable strategies, executing onacquisitions, drivingbusinessdevelopment effortsandmanaging long-terminvestment planning.
SincejoiningHfSin2013,Charlesspokenwidelyat industryforums,includingNASSCOM,ABSLandSIG,andhashadhisresearchcoveredwidelyinthebusinessandoutsourcingpress.
PreviousExperience Charleshasbeeninthebusinessservicesmarketfor20years.Previousrolesinclude:
- Growth&StrategyMDforAccentures multi-billion-dollarOperationsGrowthPlatform
- ChiefStrategyOfficerfora$500MBPOServiceProvider- Growth&StrategyforApplicationandInfrastructureOutsourcing,Accenture- Growth&StrategyforCommunications, MediaandHighTechOG,Accenture- Media&Entertainment StrategyConsultant,Accenture- MarketingDirector,Olivetti
Education MBAfromINSEADinFontainebleau, France HonorsBAinEconomics andPoliticalScience fromtheUniversityofToronto
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About HfS ResearchWecoinedthe As-a-ServiceEconomy termbecauseweseeaprofoundchangeunderwaythatismoreall-encompassingthanasimplebusinessmodelorproductline.Itsaglobalshiftthatwillleavefewsectorsofbusinessorsocietyuntouched.
TohelpourclientsandthemarketgettotheAs-a-ServiceEconomy,weservethestrategyneedsofbusinessoperationsandITleadersacrossfinance,supplychain,humanresources,marketingandcoreindustryfunctionsinorganizationsaroundtheworld.HfSprovidesinsightfulandmeaningfulanalystcoverageofbestbusinesspracticesandinnovationsthatimpactsuccessfulbusinessoutcomes,suchasthedigitaltransformationofoperations,cloud-basedbusinessplatforms,servicestalentdevelopmentstrategies,processautomationandoutsourcing,mobility,analyticsandsocialcollaboration.HfSappliesitsacclaimed BlueprintMethodology toevaluatetheperformanceofserviceandtechnologyintermsofinnovatingandexecutingagainstthosebusinessoutcomes.
HfSeducatesandfacilitatesdiscussionsamongtheworldslargestknowledgecommunityofenterpriseservicesprofessionals,currentlycomprising100,000+subscribersandmembers.HfSResearchfacilitatestheHfSSourcingExecutiveCouncil,theacclaimedelitegroupofsourcingpractitionersfromleadingorganizationsthatmeetsbi-annuallytosharethefuturedirectionoftheglobalservicesindustryandtodiscussthefutureenterpriseoperationsframework.HfSprovidessourcingexecutivecouncilmemberswiththeHfSGovernanceAcademyandCertificationProgramtohelpitsclientsimprovethegovernanceoftheirglobalbusinessservicesandvendorrelationships.
HfSblazedthetrailforthefreemiumresearchmodel.Morethan75%ofourpublishedresearchrequiresjustafewcheckboxesinoursimpleregistrationtodownloadnosubscription,nohassles.
TolearnmoreaboutHfSResearch,[email protected].