Supply Chain 4.0: Managing a Digital Transformation

As digitizing supply chains becomes easier than ever, managing them is becoming harder. To deal with this complexity, organizations should understand not only where and how to digitize, but also who will lead them—balancing the steady wisdom of experienced supply chain professionals with the drive and ambition of new digital talent. A large consumer packaged goods company, for example, used big data and advanced-analytics techniques to dramatically increase its end-to-end supply chain visibility and decision making. By developing and deploying a performance-management engine that tracks supply chain performance—and supports better exception management and root-cause problem solving—the company was able to identify and deliver a 20 percent inventory-reduction opportunity. To be successful in a digital transformation, though, it’s important that your supply chains retain traditional strengths (reliability, predictability, quality) while also allowing for innovation (greater use of automation, quicker responses to changing needs, more transparency across supply chain).

The Blog was originally posted by mckinsey.com, click here to know more in detail.