How can retail organizations scale their supply chain initiatives?
A detailed report from Capgemini shed lights on key strategies to help organization in scaling up their supply chain initiatives.BY Indian Retailer Bureau | Dec 15, 2018 | comments ( 0 ) |
The digitization of the supply chain is one of the most important aspects of overall growth strategy of the business. To address the issue, Capgemini is come up with a report titled The Digital Supply Chain’s Missing Link: Focus. In this report the company has surveyed supply chain executives at more than 1,000 organizations across consumer products, manufacturing, and retail.
The main objective is here to understand digital initiatives followed by the key organizations, the benefits they are deriving, and the ways in which they are transforming their supply chains.
Strategize and plan for the digitization of your supply chain
Involvement from top management
As per the Capgemini report, 57% of executives who participated in the report felt that lack of commitment from leadership is a key challenge since it is lengthy process and requires multiple functions such as planning, procurement, IT, and HR, among others.
Underlining the importance of top management Bastiaan Westhoff, global RCS & Wayside supply chain director at Bombardier, an aerospace and Transportation Company stated (also mentioned in the report) “The most difficult part in such a program is the change management. We needed to get buy-in from the regions. To get the buy-in, you need to reach out to the people directly impacted and you need to ensure you have the full commitment from top management. Without the buy-in you should not even start.”28 Senior leadership should also guide the program leaders on what is critical by setting goals for the digitization. If a supply chain needs to be more consumers centric, the objective and the drive to deliver will need to come from the senior leadership.
Build an ecosystem to support the digitization of your supply chain
Onboard your partners to realize the maximum benefits
More than 78% organization which was the part of the survey informed that they do not see much responsiveness from their supply chain partners. Majority of them felt that they require greater data sharing among partners. Interestingly, the data is most relevant with organization those have not successfully scaled.
However, partnerships can be resource intensive. One approach is to collaborate with a smaller segment of critical suppliers and distributors or retailers. For example, distributors could be segmented according to their logistics needs, and suppliers could be segmented based on their willingness to collaborate, their technology infrastructure, their service level agreements, or other factors.
Work toward establishing a data-driven organization
Lack of end to end visibility is yet another issue that most organizations have pointed out which is quintessential part of mitigating supply chain redundancies and to improve customer experience. For example, Brian Kesseler – co-CEO of Tenneco Inc., a US-based automotive company – highlighted the importance of data in on-time delivery.
As per the company the accurate data with right granularity drives effective data-driven decision. To accomplish this, organizations should focus on creating and developing a data ecosystem – the infrastructure for capturing data, an understanding of data flow across processes and systems, applications to analyze captured data, policies to govern the access, and security measures to protect this data. For example, supply chain control towers – which are central hubs with the required technology, and processes – capture and use supply chain data and provide enhanced visibility for short- and long-term decision making.
The above article has been extracted from a report titled The Digital Supply Chain’s Missing Link: Focus published by Capgemini.
- Back End
These human-like qualities can generate significant goodwill and drive a greater propensity to spend
How BSNLís new internet
This development came right after Reliance launched Reliance Jio to map the entire country through
- Logistics & Supply Chain
ITC optimises supply
ITC wanted to ensure that the company's supply chain is operating at the lowest possible cost of