CONSULTANCY INSIGHT : MCKINSEY & CO
SUPPLY CHAIN
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CONSULTANCY INSIGHT : MCKINSEY & CO
In its article ‘ Digital transformation : Raising supply-chain performance to new levels ’, McKinsey identifies SCM software and associated digital technologies as the driving forces which will lead to improved supply chains . “ A supply-chain digital transformation , then , is about establishing a vision for how digital applications can improve service , cost , agility , and inventory levels and consistently implementing process and organisational changes that use these technologies to drive operational excellence ,” says the article .
Importantly , however , McKinsey notes that whether a supply chain is augmented by installing new software and system isn ’ t wholly dependent on the tech itself , but rather how it is used cooperatively . Calling SCM a collaborative endeavour , the company further notes that “ efforts to improve supplychain performance should , therefore , involve changes to the ways that employees and teams share information , consider problems and opportunities , reach decisions , and carry out actions they agree on .” Therefore , a company ’ s vision should include :
The SAP-Oxford Economics study referenced by Howells provides several enlightening statistics on the development of SCM :
• 47 % of supply chain leader regard ‘ automation for routine tasks ’ as their prime strategic goal .
• 76 % are deploying IoT across several areas .
• 64 % are leveraging Big Data and predictive analytics software .
• 48 % are utilising robotic process automation ( RPA ).
JULY 2020