Digitalisation of Supply Chains aims to utilize digital technologies and processes to enable more effective and efficient management of supply chains. This creates business networks and increases overall supply chain visibility. Key drivers of digital transformation include new technologies, customers, employees, and business partners. Research shows 75% see digital transformation as important/very important, with 50% saying it is very important. 33% have started digitalizing supply chains and 72% expect to be fully digitalized within 5 years. Benefits include improved efficiencies, boosted revenues, lower costs, faster delivery, and improved service levels. Eight key components of a digital supply chain are integrated planning/execution, logistics visibility, procurement 4.0, smart warehousing, efficient spare parts

1. Digitalisation of Supply Chains
By Michael Lynham
HND BA [Hons.] MSc. MSc. MMII

2. Michael Lynham
HND BA [Hons.] MSc. MSc. MMII
Immediate Past Marketing & Business Development Manager with the Chartered
Institute of Logistics & Transport Ireland [CILT]
Currently in the Office of Vice President for Global Relation at Trinity College Dublin
Email: micklynham@gmail.com
ie.linkedin.com/pub/micheal-lynham-mmii/82/b69/594/
• @MickLynham

3. Content
1. Supply Chain Ecosystem
2. The Evolution of the Supply Chain
3. Drivers of Digital Transformation
4. Industry Research
5. Digital Supply Chain - 8 Key Components
6. Case Study - Nespresso

4. Supply Chain Ecosystem
• Standardised Process – Product – Customer
• Next few years – Changes within Supply Chain
• Advent of Digital Supply Chain
• Information available in real-time
• Objective of Digital Supply Chains – Built a new
supply network = Resilient & Responsive
• Digital Supply Chain Ecosystem =REALITY

5. What is Digitalisation of Supply Chain ?
Utilising digital technologies and processes to
enable supply chains to be more effectively and
efficiently managed, creating business networks
and increasing the overall supply chain visibility
within the network.

6. The
Digitalisation
of every
aspect of
business..

7. The Present State of Digital Transformation in
the Supply Chain
Key focus areas
1. Inside a single organisation
2. Between organisations and their
customers
3. Between organisations and all of their
partners across the value chain

8. Digitally Enabled Supply Ecosystems
vs. Traditional Linear Supply Chain

9. Drivers of Digital
Transformation
1. New Technologies
2. Customers
3. Employees
4. Business Partners

10. Industry Research
75% of organisations say that digital
transformation of the supply chain is
“important or very important”
50% say that Digital Transformation is
“very important”
[The study surveyed 337 executives from some of the largest global
manufacturing and retail organizations from over
20 different countries around the world]

11. Industry Research
33% of companies have started digitalising their
supply chains
72% of companies expect to
be fully digitalised within
5 years
[The study surveyed 2,000 supply chain respondents – PWC, 2016]

12. Digital Supply Chain –
Economic Benefits
• Improved Efficiencies by 4.1% annually
• Boosted Revenues by 2.9% annually

13. Digital Supply Chain - 8 Key Components
Integrated
Planning &
Execution
01
Logistics
Visibility
02
Procurement
4.0
03
Smart
Warehousing
04
Efficient Spare
Parts
Management
05
Autonomous
& B2C
Logistics
06
Prescriptive
Supply Chain
Analytics
07
Digital Supply
Chain Enables
08
The Supply
Chain at the
centre of the
digital
enterprise

14. • Business Goals of Digital Supply Chain
Full Integration
Core Elements & New Technologies -
Integrated Planning & execution

15. Core elements & new Technologies
Logistics visibility – seeing the network
B2C networks – More information in real time
B2B networks – Expectations on timely status information which are linked to
production plans
Requirements for Transparency – Technical & Intelligent human invention

16. Single platform
Consolidated & enriched
with cross referenced
information
[Social media]
Linked within the platform
& put through additional
analytics and simulation
runs
Logistics visibility – seeing the network

17. Digitalising the Procurement
Function – Procurement 4.0
• Radically change the tools and
talent required, add new categories
to be sourced, and transform the
value proposition
• Critical building blocks – Efficient
Integration & Management of
suppliers of raw materials
• Change is taking place –Utilisation
of a variety of big data tools and
techniques to connect more closely
with suppliers, aid the planning
process, improve sourcing, actively
manager supplier risk, and boost
collaboration.

18. Procurement 4.0
Benefits
• Lower Costs
• Faster Delivery
• Improved Level of Service
• Increase Automated processes

19. Core elements & new Technologies
Smart warehousing – robots at work
- Strategic Tool
- Improve efficiently & safety
- Inbound logistics
- RFID sensors – Information about what has been delivered
- Management system – Automatically allots storage space
- Inside the warehouse – Management software will constantly update in real time
- Flying Drones – Potential ?
- Wearables & augmented reality systems

20. Core elements & new Technologies
Smart warehousing – robots at work
DHL & Ricoh
Augmented Reality System
Employees navigate routes via glasses graphic displays
RESULTS
- 10 order pickers
- 9,000 orders fulfilled
- 20,000 items
- Overall picking efficiency increased by 25%
- Orders packed by Robots

21. Core elements & new
Technologies
Efficient spare parts
management – with 3D printing
- Spare parts can be
manufactured as needed
- Printers , software blueprint
& materials
BENEFITS
- Reduction in spare parts
inventories
- Reduction in associated
costs

22. Core elements & new Technologies
Autonomous & B2C logistics – robotic transport
- Driverless vehicles - mapping software
- Other robotics innovations
- Autonomous truck convoys – Reduce need for humans drivers
- Internal sensors – Access fleet damage to cargo & maintenance requirements
BENEFITS
- Reduced human error
- Reduced emissions [more efficient operations, routing and convoying of trucks]
- Lower labour costs
- More reliable delivery times

23. Core elements & new Technologies
Prescriptive supply chain analytics
- Big data analytics
- Sophisticated signals from market [s]
- Optimise any factors within the entire chain
- Actively modify the chain
- Prescriptive data – Scenario planning

24. Core elements & new Technologies
Smart supply chain enablers
Processes
01
Organisational
and skills
02
Performance
management
03
Partnering
04
Technology
05

25. Case Study - Nespresso
• Goal – Provide customers with the perfect coffee
experience
• Incorporated Technology to achieve this goal
• Trigger – Deeper understanding of customers and
manage complex buying processes
• Utilised – Customer Engagement Solutions [Cloud], Full-
fledged sales solution [entire buying cycle; pricing,
quotes and orders], external data sources like; social
media
• Benefits – Greater penetration of markets, higher sales
and user adoption and greater visibility. Enhanced
business processes. Shorter delivery times [4 weeks].
Single optimised view of their supply chain

26. Thank You!