Explore with JDA strategy to evaluate your Supply Chain in digital innovation era
Fred Baumann, GVP, JDA Software, in the "Inteligent CIO" explains key strategies to consider when taking steps to increase supply chain readiness in the manufacturing industry as companies prepare for digital innovation.
Manufacturing a truly digital supply chain in four steps
Read the whole INTELLIGENT CIO article here>>
Manufacturing supply chains are at an inflection point. Optimisation is moving from node to network, planning and decision frequency is changing from periodic to real-time and the supply chain itself is evolving from ‘one‑size-fits-all’ to a market segment size of one. The rules of the game are changing and with it, supply chains are becoming centre stage in developing the next stage of competitive advantage.
JDA recently worked with Warwick Manufacturing Group (WMG), The University of Warwick, to create the Supply Chain Digital Readiness Report where 180 major manufacturing companies in Europe took part. The report defines digital readiness across four key levels. So just how close are manufacturers to digital supply chains?
The journey is underway
The research reveals that European manufacturers are at an early stage of the journey – see figure below. Only 13% have so far reached level three readiness: dynamic end-to-end supply chain optimisation supported by an advanced analytics capability, starting to leverage ML and AI. 52% were at level two readiness: leveraging some specialist analytics tools to support functional optimisation. 35% were still trying to get visibility of data and were using simple analytics tools (e.g. spread sheets) predominantly for reporting. By 2023, level three readiness is predicted to more than double to 31%. However, the average level of readiness is only predicted to increase by half a level from 2.3 to 2.8.
While there’s no silver bullet to increase supply chain readiness, there are four key strategies to consider:
1. Enhance visibility and optimise core supply chain processes
2. Adopt a supply chain business process orientation
3. Proactively mitigate risk to the supply chain by leveraging new digital innovations
4. Explore new business models
Find out more about strategies here>>
Start your journey now
We are in the midst of massive change; a change that will see supply chains become the core of how organisations compete. Moreover, the intelligent use of digital technologies will enable new models of economic growth and productivity. To achieve this, manufacturers should be making more effective use of their data – especially to support end-to-end-to-ecosystem visibility alongside an increasing use of AI to get ahead of disruption and opportunity. Ultimately, to keep customers happy, manufacturers need to find the appropriate blend of digital innovation to achieve a new generation of profitable and personalised efficiency.
