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Digital Lemming Or Leader?
This document discusses strategies for companies to become digital leaders in their supply chains. It begins by distinguishing between being a "lemming" and following trends without purpose versus being a leader. The document then discusses how digitization can improve supply chain productivity. Four strategies for digitizing supply chains are presented: 1) optimizing core supply chain processes, 2) optimizing business processes, 3) conducting digital technology pilots, and 4) adopting new business models enabled by technology and trends. The strategies emphasize using data and technology to drive operational excellence, maintain strategic alignment, and create new customer value in order to transform supply chains.
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Digital Lemming Or Leader?
- 1. Digital lemming orleader? Enabling supply chain productivity through digitisation Jan Godsell Professor of Operations & Supply Chain Strategy WMG, University of Warwick
- 2. 1. Lemming orleader? 2. Supply chain productivity 3. 4 strategies to digitise supply chains 3 things…
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- 5. 1. Stick toa plan 2. Know your goals 3. Pick a strategy that aligns with your goals 4. Minimize your risk 5. Don't succumb to greed or fear 6. Understand your SC personality 7. Stay within your SC comfort zone 8. Stick to your SC approach 9. Don't get sucked into the hype of ”SC porn" (media, publicity and advertising) 9 strategies to avoid being a SC lemming… After https://www.investopedia.com/terms/l/lemming.aspAfter
- 7. 1. Drive changeand improvement 2. Increase performance and productivity through change in all areas of the supply chain, from design to processes 3. Help the supply chain adopt new patterns of operation by improving relationships and trust between people, and innovation in processes 4. Overcome the doubt of others through good performance, insight, careful planning, good timing and growing team loyalty 5. Prioritize the mission of the organization 6. Use available resources, talent and opportunity to execute the organization’s mission 7. Are accountable for the vision and its execution 7 roles of supply chain leaders
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- 10. What is thedigital supply chain?
- 11. 4 sub-dimensions with4 levels of digital readiness…
- 12. ＞Level 3 digitalreadiness predicted to more than double to 31% by 2023 Only 13% companies currently at level 3 readiness
- 13. 4 strategies todigitise supply chains…
- 14. 1. SC coreprocess optimisation
- 15. Competing through processexcellence… YOUNGER FAMILIES STRIVING FAMILIES MATURE 50+ Shop Direct to stop Littlewoods catalogue after 80 years Littlewoods to stop printing catalogue and focus on websites due to internet shopping revolution Catalogue circulation Peak: 25 million 2010: 5 million 2015: 300,000 “This is a big step in Shop Direct’s transformation and, importantly, it’s one that’s been led by our customers. They’ve embraced online at a phenomenal pace – this is where they’re browsing and where they’re buying” Alex Baldock, CE, Shop Direct (May 2015) ＞Explosive growth ＞Very largest brand 80.7bn ＞Heritage propositions ＞Limited growth online ＞Huge market potential ＞Double digit growth
- 16. Supply chain comprisesof 5 core processes… Source: Supply chain council (www.supply-chain.org)
- 17. Translate into a seriesof operational processes…
- 19. Most companies arecurrently only leveraging their data infrastructure… ＞Starting to embark on the collection of data from new sources
- 20. 5 steps toSC core process optimisation…
- 21. 2. SC businessprocess optimisation
- 22. Customer relationship managementprocess ⚫ Selecting and qualifying desired suppliers ⚫ Establishing and managing in- bound logistics ⚫ Designing and managing internal logistics ⚫ Establishing and managing out- bound logistics ⚫ Designing work flow in product/ solution assembly ⚫ Running batch manufacturing ⚫ Acquiring, installing and maintain- ing process technology ⚫ Order processing, pricing, billing, rebates, and terms ⚫ Managing (multiple) channels ⚫ Managing customer services such as installation and maintenance to enable product use Product Development Supply Chain Customer Relationship Management Process Management Process Management Process ⚫ Identifying potential new customers ⚫ Determining the needs of existing and potential new customers ⚫ Learning about product usage & application ⚫ Developing brand and positioning strategies ⚫ Developing/executing a & p progs ⚫ Developing/executing service programmes ⚫ Developing/executing sales programmes ⚫ Acquiring/leveraging information technology/system for customer contact ⚫ Managing customer site visit teams ⚫ Enhancing trust and customer loyalty ⚫ Cross-selling and upselling of product service offerings Christopher after Srivastava et al, 1999 ⚫ Ascertaining new customer needs ⚫ Designing tentative new product solutions ⚫ Developing new solution proto- types ⚫ Identifying and managing internal functional/departmental relationships ⚫ Developing and sustaining networks of linkages with external organisations ⚫ Coordinating product design activities to speed up business processes 3 core business processes
- 23. 1. Have customersfor whom they create value 2. Typically cross functional boundaries 3. Draw upon functional resources 4. Are team-based 5. Have strategic goals 5 characteristics of business processes
- 24. A business process orientationis fundamental to maintaining strategic alignment… Source: WMG & JDA Study on SC Segmentation (2016)
- 25. Leveraging bedrock ofoperational excellence
- 26. Functional and regionalorganisational structures inhibit end to end SC thinking… ＞Only 17% respondents had a business process orientation as part of their organisational design Source: WMG & JDA Study on SC Segmentation (2016)
- 27. IBP is thesingle most important governance mechanism to close the gap to strategy ＞S&OP lowest performing current dimension
- 28. 3. SC digitaltechnology pilot
- 30. Rate of AIadoption set to double in next 5 years…
- 31. New technology adoption canbe de-risked… Source: Godsell (2018) after Ansoff (1957)
- 32. 4. New businessmodels
- 33. Underpinned by more substantial andinter-connected trends… ＞Improved productivity
- 34. ＞Dimension where the highest% of respondents (64%) wished to achieve a level 3-4 strategic outcome (purpose) Changing nature of manufacturing footprint reflected in network design result…
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- 40. Use the 4strategies to be a supply chain digital leader…
- 41. @JanGodsell @WMGSupplyChain #SCinPractice j.godsell@warwick.ac.uk Keep in touch… NextSCIP networking event: Tuesday 12th March 2019, 08:30 Skills Readiness for Industry 4.0 http://www2.warwick.ac.uk/fac/sci/wmg/research/scip/networking