In a digital transformation, an important development step is the transformation of the supply chain into a digital network. The current basic assumption of a linear and sequential chain with a static sequence of the phases Design, Plan, Source, Make and Deliver is no longer up-to-date…. What is the best way to describe a digital supply network?
– It is an open system with many cross-connections in the value creation stages.
– Companies control multiple supply networks. This means, for example, that there is one network each for castings, plastic elements, technical assemblies and the like.
– The links between the value creation stages are held together by a Digital Core.
– Within the digital core, data is collected, analyzed and recommendations for action are designed.
– Complete transparency down to the last stage of the supply chain is provided in real time and made measurable.
A digital delivery network exists, according to Deloitte, when the following 5 characteristics have been realized:
1. “Always on” agility: Digital delivery networks are continuously pulling data – traditional and those based on sensors and other location-based tools. This data foundation enables an integrated view of the network and rapid responses to changing situations without latency. Connected Community: Seamless and multimodal real-time communication improves collaboration with suppliers, partners and customers. The entire value chain benefits from centralized, standardized and synchronized data. 3. intelligent optimization: people and machines not only work together smoothly, but also learn from each other. This goes hand-in-hand with data-driven analytics that optimize decision-making and results. 4. complete transparency: sensors and location-based services provide instant visibility even of critical aspects. This makes it possible to track the flow of materials, synchronize schedules, balance supply and demand, and achieve financial benefits. 5. holistic decisions: Better-informed decisions become possible because there is information transparency across all functional silos.
The advantages for the companies are obvious:
– Companies can achieve new levels of performance through greater operational efficiency and effectiveness
– A more customer-focused network can create new revenue opportunities
– When companies leverage their entire supply network, traditional barriers shrink
– By means of information assessment throughout the network, risks or weaknesses can be eliminated more clearly and quickly
– Global effects such as pandemics can be anticipated earlier and networks can be redirected
The creation of a digital supply network is thus not only a business advantage, but also to be implemented in the short or long term in order to remain competitive. What’s more, supply chain transparency is even becoming a regulatory necessity. The effects of the new Due Diligence Act must be included here (see Due Diligence Act – Regulatory vs. Competitive Advantage, Sustaining Values (pwc.de)).
