What are the drivers and success factors for successful supply chain management against the background of digitalization? The SCM experts at CAMELOT get to the bottom of this question in a recent study.

More than 150 supply chain managers from four industry segments were surveyed for the study, entitled “Quantum Leap in Supply Chain Performance.” The survey participants agree: Digital ecosystems and new market requirements will result in the most significant changes to supply change management since the 1970s. The extent of these changes is a quantum leap – in a positive sense.

Companies now have to find an answer to the central question how to use this impending quantum leap most successfully for their benefit. The study has identified six essential levers used by leading industrial companies for the successful digital transformation of their supply chains.

Six levers for success

These include, for example, the “Segmentation and differentiation down to a lot size of one” principle, that is, the customization of supply chains for individual, strategically defined customer, market or product segments. Good practice also includes using real-time demand signals in operational supply chain planning and execution, instead of predicting customer demand. The establishment of a “supply chain flight radar” ensures real-time transparency along the whole supply chain and enables quick decisions – another tried and tested approach for successful companies. The remaining three levers are:

  • Renewing the operating model
  • Linking data analysis, processes and plants through vertical integration
  • Using collaboration platforms to avoid bottlenecks

Whatever approach companies decide to take, there is a lot to be done in the context of digitalization. The practices identified in the study serve as both a benchmark and as guidance.

Race for Value: Towards the Digital Supply Chain

To leverage the full potential of digital supply chains, there are still challenges to overcome. This thought paper provides insights on how to drive the digital transformation of the supply chain.

Download our Thoughtpaper on Digital Supply Chains

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