the connected supply chain - apics€¦ · apply agile methodologies to learn fast and deliver...
TRANSCRIPT
APICS Chicago Executive Night
The Connected Supply Chain How technology is enabling an intelligent and digital ecosystem
May 21st, 2019
© 2019 PricewaterhouseCoopers LLP, a Delaware limited liability partnership.
Presenters Rob DeNardo, PwC
Principal
Consumer Markets
Chicago, IL
Managing Director
Consumer Markets
Chicago, IL
Ash Uchil, PwC
3
Business models Expectations
Digital technology
Future
Supply
Chain
Supply chains are being disrupted by
an onslaught of changes
4
“Amazon-ification”
→ 100%
Custom for me
Anywhere, AnytimeMarket
expectations are racing higher
Lead Time
Delivery Points
Portfolio
Service Levels
5
Information complexity is
exploding
6
“Netflix-ification”
“Uber-ization”
“Dynamic” and “predictive” is no longer an option
?
?
More Regulation
Supply chain leaders are being tasked to address the disruptors and to achieve performance levels well beyond past expectations
7
Real-Time
Better Decisions
More Consistency
Cheaper!
More Volatility
More Complexity
Faster!More
Information
8
Traditional supply chains suffer from lag and siloing of information
RetailerProduction
Order & confirm
Plan
Order & confirm
Plan
Order & confirm
Plan
Goods
Info
Flow Types
Promote
Monitor
Track & trace
9
Retailer
Goods
Info
Flow Types
The objective is the Connected Supply
Chain - faster, more agile and dynamic -leveraging data and predictive analytics
Distribution
Production
Consumer
Supplier
What benefits do you expect from your digital technology investments cumulatively over the next 5 years?
10
Operations executives are expecting big things from digital technology, and it is not just about cost reduction
Revenue increase
Base: 1,155 companies Q. What benefits do you expect from your digital technology investments cumulatively over the next 5 years?
Source: PwC Strategy&’s Global Digital Operations Study 2018, Gartner, 2017, Strategy& analysis, 2018
Average: 15%
Cumulative revenue gain over 5 years
0 to
9%
10 to
19%
20 to
29%
30%+
9%
29%22%
Cumulative efficiency gain over 5 years
0 to
9%
10 to
19%
20 to
29%
30%+
8%
29%35%
Average: 12%
23%15%
Efficiency gain/cost reduction
● Digital Champions expect 25%
incremental revenue gains and 21%
efficiency gains over 5 years, from
investing in digital technology
● This compares to 15% and 12%
average expectations, respectively
● Digital Novices only expect 9% and 7%
Predictive maintenance of assets / products
Manufacturing Execution Systems
Integrated E2E supply chain planning
Connectivity/Industrial Internet of Things
Digital twin of products / manufacturing line
Collaborative/ smart robots, RPA
Artificial Intelligence
Virtual/augmented reality
Companies are implementing advanced technology across the supply chain, with some sectors playing catch-up to those who drove I4.0
8%
9%
48%
45%
44%
42%
33%
28%
Base: 1,155 companies DC = Digital Champions Q. To what extent have you implemented the following technologies within your company?
Source: PwC Strategy&’s Global Digital Operations Study 2018
Industry
Average
26%
35%
42%
34%
29%
27%
70%
75%
87%
78%
68%
72%
34%
40%
DCsAll Companies% of
To what extent have you implemented the following technologies within your company?
11
Evolving the Digital Journey
12
NowEmerging technologies
that organizations should focus on today
NextEmerging technologies that
will be relevant to organizations in the near
term
Emerging technologies considered as part of an organization’s long-term
strategy
Nascent
Strategy through Execution- with horizontal and vertical integration- to build and sustain the digital ecosystem
13
IT Architecture & Systems
W W
W
Data Analytics & Prescriptive Supply Chain
External data
(e.g., weather,
social listening)
8
Stores & Last mileSupplier ProductionWarehouse Distribution site
Procurement 4.03 Smart Warehousing 4 Smart Logistics6
W W W
Customer
W W
W
W W
W
Digital Transformation Organization & Culture (Enabler)
Customer Access and Order Management
7
Integrated SC Planning and Execution
Transparency and Visibility (including Product & Logistics)
1
2
Digital Aftermarket Services
Digital Product Development and Product Lifecycle Management
Digital Operations Strategy
Smart Factory 5
Defining your strategy- to executing it - with Digital
14
Take Action and AutomateIntelligence
Insights
Integration
Strategy
Draw Meaning from Data
Gather and Share
Information in Real-Time
Define the Principles to
Operate By
● AI
● RPA
● Workflow integration
● ML
● Prescriptive analytics
● Scenario analyses
● Visibility
● Traceability
● Cyber-security
● Tailored supply chains
● Operating model
‘Experience’ is at the heart of designing a Connected Supply Chain -
Tie the user experience to the strategic and take an agile approach to development
15
B X TDefine digital vision and
target state to drive
implementation focus and
prioritization
Implement pragmatic
solutions backed by a solid
business case with tangible
financial results
Learn from others and apply
best practices and proven
frameworks
Co-create in catalyst
workshops to secure full
alignment of key stakeholders
Apply agile methodologies
to learn fast and deliver early,
creating momentum with
first pilots
Adopt a user-centric
perspective to come up with
solutions driven by user
requirements
Incorporate AI and data &
analytics for smarter
decision-making
Bring in leading technology
providers to implement fitting
solutions
Use rapid prototyping to fail
fast and improve rapidly
Meeting the business needs Creating optimal user experience Defining the technology requirements
Q&A
16
Contact Information and Relevant Links
17
● Connected Supply Chain Website
● Industry 4.0: Global Digital Operations Study 2018
● Fit for Growth
● 2019 AI Predictions: Six AI priorities you can’t afford to ignore
● PwC Operations
● Next in Tech: Manufacturing
Principal
Consumer Markets
Chicago, IL
+1 (630) 842-0959
Rob DeNardoManaging Director
Consumer Markets
Chicago, IL
+1 (312) 286 0059
Ash Uchil
Thank you
© 2019 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the
PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes
only, and should not be used as a substitute for consultation with professional advisors.
PwC.com