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

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