How to Build a Supply Chain X.0 Strategy

Recent research has found that traditional processes are limiting segments of the supply chain—and so the processes need to evolve if OEMs are to thrive. Collaborative end-to-end processes must be oriented around outcomes and talent skillsets. A supply chain X.0 strategy suggests achieving this by enabling end-to-end visibility, flexible technology, and efficient fulfillment.

The supply chain of the future combines efficiency, productivity, and profitability. 53% of supply chain executives surveyed by Accenture Consulting believe “stronger alignments of supply chain segments to other functions will further improved end-to-end accountability in the next three years.”

To achieve this goal, the supply chain must follow a strategy to become:

  • Rapid
  • Scalable
  • Intelligent
  • Connected

Today’s agile world, rapid development in digital technology, and changes in demand of talent skillsets urge supply chain leaders to embrace transformation into a digital supply chain. By improving the supply chain new levels of efficiency, agility, profit, and customer loyalty the organization will help create the path toward supply chain X.0. To accomplish this, Accenture’s research suggests:

  • Move toward automation: In the future, as a result of fully automated transactional supply chain activity and the continuous self-learning process of high-performance cognitive computing (HPCC), supply chains will be able to handle more complexity. This will lead to more dynamic, flexible, adaptive, and efficient supply chains. 
  • Pivot to a cross-functional operating model: 89% of supply chain executives report that customers see their current operating models as too complex, and for half of them, “decision making speed” and “flexibility to respond” are key sources of that complexity, according to the report.

Companies need to transition to an integrated model that breaks down silos and connects all functions from planning to execution. The digital era requires structuring processes around the customer outcome, or talent skillset needed.

  • Transition to cross-functional analytical skills: “ 85% of supply chain executives report already considering outsourcing portions of their supply chain. “Logistics and distribution” (52%), and “supply chain analytics” (49%) are the areas considered most.”

Today’s specific supply chain skills does not provide an understanding of cross-functional, end-to-end dependencies. Effective decision making and meaningful insight will arrive from the transition to more analytical skills capable of making sense of the vast amount of data. Insights gathered from prescriptive and predictive analytics can be used to plan and address issues in real-time.

  • Build ecosystems partnerships: The supply chain X.0 will take in-house capabilities toward a network of partnerships. No business will be an island any longer. Collaboration within and outside the organization will lead to resolve problems faster, seize growth opportunities, and enhance the customer value proposition. 

Sharing, discussing, reviewing, and approving scenarios in real-time through social platforms allow colleagues and ecosystems to share quantitative data from supply chain systems. The continuous process in real-time becomes evident in sales and operations planning.

  • Solve for the individual: Individualization takes a front seat as companies shift from solving for volume to solving for individual customers. The one-size-fits-all approach does not work anymore. Its limitations doesn’t address the unique customer, market, product, or channel requirement. The supply chain of the future serves the unique needs of each unique customer.

“97% of supply chain executives surveyed are planning on modifying their supply chain operating model toward more granular segments, and nine in 10 expect to benefit. 52% believe this shift will enable higher customer satisfaction, and higher degrees of flexibility and agility (48%).”

Customer personalization enables improved inventory placement to enable improved sales in an optimized cost structure.

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