Drive Digital Growth Through a Focused Supply Chain Organization

How do supply chain leaders succeed in today’s dynamic economy? By increasing their digital footprints.

Emerging technologies – such as the Internet of Things, robotics, blockchain, additive manufacturing and artificial intelligence – are empowering these leaders to establish and operate their supply chains as true competitive differentiators for their businesses. These technologies are at the core of supply chain disruption – and crucial to preparing your company for Industry 4.0. To win, you must have a collaborative mindset designed to capitalize on the digital investments in your supply chain.

As supply chains are transformed into resilient entities, they’re readily able to adapt to today’s hyper-competitive (yet uncertain) environment. The surrounding technologies enhance collaboration, transparency, flexibility, responsiveness and efficiency across an organization, ultimately leading to better decisions. Examples include faster route planning with rapid deliveries fulfillment and better allocation of inventory with agile contingency plans in place.

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A Real-World Example: Electronic Technology Co. Ltd.

‍Electronic Technology Co. Ltd. is an electronic parts manufacturer for cellphones, laptops, consumer devices, automobiles and more. Utilizing fully automated, intelligent and modular production, they were able to:

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• Increase overall production efficiency by 32%

• Reduce costs by 33%

• Reduced data volume

• Obtain 41% faster cycles from R&D to production

• Drive a 51% reduction in defective parts rate – from 3,000 to 1,500 per million

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To fully deliver on the ROI promises of digital supply chain technologies, companies need to increase their coordination not only within their organization, but externally as well. Supply chains touch all areas of the enterprise – and technology implementation must do the same. This approach unlocks institutional knowledge and process value previously hidden in different silos across the enterprise. If supported and utilized correctly, the enterprise approach also reduces costs and competition for funds, carrying immediate and longer-term benefits for all areas of the organization.

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‍Getting Started

‍So, where do companies begin? It starts with establishing an internal organization empowered to create and drive the strategy and vision forward for your digital transformation. And while strategies must be focused on creating a more transparent and resilient supply chain, they must be rooted in enhanced collaboration across the enterprise, too. For successful implementation, a collaborative team should be built with high-performing talent from all divisions within the company. Cross-functional stakeholder involvement is also key to creating buy-in for the overall direction and strategy.

This empowered organization will create the strategic vision, goals and innovation opportunities based on the current and future state, while benchmarking on industry standards and trends. Once the strategic vision and goals are created, they will craft a detailed roadmap that concentrates on bringing the highest ROI gains forward during the process. A framework is established to allow for focused, ongoing refinement and a perpetual evaluation of the current environment. Having this capability, capacity and wiring for success ensures the sustainment of your innovation – and even further, the enhancement of your investment for years to come.

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‍How Collective Insights Can Help

‍Collective Insights works side-by-side with global organizations to develop their digital supply chain strategy, digitize their supply chains, and finetune the design of their supply chain organization to win in Industry 4.0. Our supply chain experts collaborate with clients to determine elements of technology that drive their strategy and promote the greatest value for their needs.

We target opportunities to standardize and simplify coordination across supply chain stakeholders, drive implementation, and create an organizational capability and mindset equipped to capitalize on the new digital environment of Industry 4.0. The ultimate goal? To ensure your organization is aligned with the key elements of your strategic vision – to foster a more robust and resilient supply chain.

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‍References:

‍[1] https://www.scmr.com/article/supply_chain_strategy_reboot

‍[2] https://www.forbes.com/sites/sap/2020/07/08/how-industry-40-helped-a-leading-electronics-manufacturer-balance-efficiency-and-customization/#93c875130928/