The Journey to Digital Supply Chain Transformation: Insight and Perspectives from IT Leaders

THEJOURNEYTO DIGITAL SUPPLY CHAIN TRANSFORMATION Insight and Perspectives from IT Leaders Like all enterprise applications, supply chain management is being redefined and revolutionized by digital technologies. But that’s not all; the entire supply chain operating model is now reshaped by technologies such as pervasive mobility, item-level RFID, cloud computing, artificial intelligence, big data analytics, blockchain and automation. That revolution has prompted IT and business executives to rethink their organizations’ approach to supply chains, and they are putting a lot of wood behind the arrow. Research indicates that global spending on supply chain solutions will approach $33 billion by 2026, an 11.2% compound annual growth rate.1Naturally, when organizations think about transforming their supply chain systems, there are plenty of issues that must be considered. Today’s technology solutions don’t look or act like legacy systems. Instead of hulking, platform-dependent and siloed systems, supply chain solutions of the future must be sleek, adaptive, intuitive and scalable to business needs. 1 “Global Supply Chain Solutions Market to Hit $32.0B By 2026,” Supply Chain Digital, May 2018.Supply chain management has become a critical business function for organizations across a wide swath of industries. But many supply chain systems are based on aging infrastructure, ill-fitted applications and old processes. This paper focuses on why and how supply chain management systems need to transform, and examines a specific solution aligned for today’s digital-centric supply chains.WHITE PAPERConcerned About Your Organization’s Supply Chain Management System? You’re Not Alone 2And while it’s easy to get caught up in the so-called “Amazon effect” on digital supply chains, it is a fitting metaphor for the need to rethink and overhaul supply chain systems that need to be far more responsive and predictive. Applications like e-commerce that have rocked the traditional retail world are truly 24/7 global operations; next-generation supply chains must mirror that trend. That’s not just limited to the retail industry. Supply chain transformation is taking place across a wide range of vertical industries, such as life sciences/pharmaceuticals, government, health care, and more. In other words, when it comes to digital supply chain transformation, the mantra is clear: evolve or die.YOUR SUPPLY CHAIN SYSTEMS NEED A COMPLETE OVERHAUL — NOWThere’s a growing realization among IT professionals and business leaders that legacy supply chain systems must give way to “digital supply chain systems.” By that term, we mean systems that not only use technology for better tracking and transporting of goods from the factory to the ultimate customer, but also are designed, deployed and managed with today’s digital business processes in mind.There are many drivers for these requirements, ranging from the need to squeeze more cost out of supply chains and improve inventory visibility to heightened cybersecurity risks, stricter compliance rules, and increasing governance and legal demands across supply chain activities.Regardless of the drivers, the result is clear: enterprises readily acknowledge that they need to modernize and transform their supply chain systems in commercial and consumer environments that are changing more rapidly and profoundly than ever.According to research conducted by TechTarget with 310 IT professionals, 90% of respondents agreed that their organizations need to improve, modernize or overhaul their supply chain systems.The study (commissioned by GEP and conducted independently by TechTarget over its audience of IT buyers) sought to get IT professionals’ input on supply chain-related issues in their organizations and what factors are pushing them to re-engineer their supply chains.At the heart of digital supply chain transformation is the need to promote innovation, become more agile and responsive to market dynamics, achieve faster time to economic value and improve operational excellence. But digital supply chain transformation also must address a wide range of other challenges and opportunities, such as improving competitive differentiation, enhancing customer relationships, using business partners’ capabilities more effectively and ensuring secure, compliant handling of goods every step of the way.CONCERNED ABOUT YOUR ORGANIZATION’S SUPPLY CHAIN MANAGEMENT SYSTEM? YOU’RE NOT ALONETo what extent do you agree that your organization needs to improve, modernize or overhaul your SCM systems?Strongly agreeAgreeNeither agree nor disagreeDisagree36%54%7%3% This is no easy task. The TechTarget research pointed out some of the key obstacles respondents say their organizations have faced as they have set out to upgrade and update their supply chain systems. Topping the list: failure to achieve a “single view of the truth” for supply chain-centric data, followed by a lack of global supply chain visibility and compliance/