Capgemini:”The current and future state of digital supply chain transformation”

Barcelona, April 15, 2016.-     AndSoft is very sensitive to the consequences of the current digital business transformation. Our technology platform, e-TMS, is full web and for this reason we are very attentive to any analysis of Internet, big data, digital innovations, and its reflection in the supply chain. Today we bring this report by Capgemini and GT Nexus showing the reaction of managers to the current digital situation.

Executives see a large gap between the current state of digital transformation across their extended global value chains and what they expect to see in just five years from now. Those are the results of a global research study conducted by Capgemini Consulting and GT Nexus. The study surveyed 337 executives from some of the largest global manufacturing and retail organizations from 20 different countries around the world – largely from Europe and North America.

Most research studies conducted on the topic so far have examined Digital Transformation within organizations, or between organizations and their customers. This new research project is the first of its kind that explores the current state and future of Digital Transformation especially between organizations and all of their partners across the extended value chain.The study surveyed 337 executives from some of the largest global manufacturing and retail organizations across Europe and North America. Key findings of the research study include:

Digital Transformation of the Supply Chain is important

• 75% of respondents say Digital Transformation of the supply chain is “important”
• 50% say that Digital Transformation is “very important”
• 70% say they have started a formal Digital Supply Chain Transformation effort

Progress has been slow so far

• >30% of respondents said they are “dissatisfied” with progress so far
• Only 5% are “very satisfied”

Key technology enablers have been identified, but are not widely used yet

• Supply Chain Visibility Platforms/Tools (94%), Big Data Analytics (90%), Simulation Tools (81%) and Cloud (80%) are seen as the biggest technology enablers of Digital Supply Chain Transformation
• But 48% of respondents admit that right now “traditional” methods such as phone, fax, email are still the dominant ways to interact with supply chain partners

Dramatic changes are expected within just five years

• Today only 15% of respondents say that the majority of data from the extended supply chain is accessible to their organization. In five years, that number jumps to 54%
• Today only 23% of respondents say that the majority of data from the extended supply chain is analyzed and used for decision making. In five years, that number jumps to 68%
• Five years from now, 95% of respondents expect more processes with suppliers to be automated
• Five years from now, 94% expect to receive more real-time status updates from across the entire supply chain

The expected benefits of Digital Supply Chain Transformation include, but go well beyond cost reductions for logistics, inventory and maintenance, improvements in customer service and higher overall equipment effectiveness. Perhaps more importantly, Digital Supply Chain Transformation is expected to dramatically improve an organization’s agility. Agility is necessary to respond to changing market conditions, to new market entrants that can threaten existing business models or to unexpected supply chain disruptions. Such disruptions have already caused major harm to the financial performances and reputations of countless organization over the years. Read the full study