The Business World is Transforming
  • By 2025 the worth of the Internet of Things will be $6.2 trillion.
  • The sharing economy will reach $330 billion by 2025.
  • For people starting their education, 65% will enter the workforce into jobs that don’t exist today.
  • The average tenure on the S&P 500 is dropping. Only 25% of the companies in 2012 will remain by 2023.
  • Automation and robotic usage will grow 2,000% from 2015-2030 amounting to $190 Billion market.
  • 86% of global CEO’s are championing digital transformation of their companies.
  • By 2025, half of world’s companies with revenues exceeding $1 billion will be headquartered in today’s emerging markets.
  • By 2018, the data created by the Internet of Things will reach 403 zettabytes a year.
  • By 2030 the population will be over 8 billion people and 50% of Global GDP growth will come 440 cities in emerging markets.
  • By 2030 more than 30% of workforce will be older than 55 in developed countries.

How Adaptive Is Your Supply Chain?

How Adaptive Is Your Supply Chain?
01/15/2018, Angelo Angeleri , in Operational Transformation

Utilizing a Digital Modular Supply Chain to Respond to Change

The outlook for American consumer spending appears to us to be improving, with consumer confidence growing, and a labor market and wages trending higher. Consumers preferences are changing and the fast-paced customer-driven market has raised the bar for speed and quality for new products and customer service.  So how can companies anticipate, adapt, and respond quickly to changes in consumer demand and trends?  Gartner’s 2017 Supply Chain Top 25 identified digital-modular supply chain services as a key trend that is accelerating the ability of supply chains to adapt and respond quickly to different business needs and outcomes.

Digital Supply Chain

Supply chain digitization leverages technology to connect, integrate and manage the end-to-end process and to enable a supply chain infrastructure from which other supply chain capability can be added or combined.

Modularization of Supply Chain

A modular-based supply chain is a set of interchangeable components, that can be combined or re-combined into a system of strategic, planning and executable components.  Each component is designed to contribute to the overall business goal, and integrates and shares information with other components of the business model.

Combining the benefits of a digitized supply chain with modular-based supply chain capabilities enables a connected, integrated adaptive business model that allows companies to move quickly and flexibly to support different business needs and outcomes.

How Adaptive is Your Supply Chain?

Being an adaptive supply chain hinges on your ability to change. Adaptive digital supply chain organizations can quickly add or modify products, add or modify capabilities, or consolidate components to maximize efficiencies or improve customer experience.   Every industry has its own rate of change, depending on its products, processes and customer requirements. Individual capabilities can lose value overnight, driven by shifts in the economy, competition or disruptive technologies, but competitive advantage is directly correlated to your ability to change.

Adaptability is related to how to well a company can continually transform its business to find sources of competitive advantage. The key capability of a digital modular supply chain is that it is strategically aligned, digitally enabled and focused on being adaptable for competitive advantage. Using this approach, allows for a best of breed customized bundle of modular services to be carried out where it is most cost effective and profitable to do.

My next articles will discuss how you can implement a digital modular supply chain to address changes in market demand and achieve cost and profit strategic objectives.

Angelo Angeleri

Contributing Author

Angelo has over 20 years of consulting experience working as a Supply Chain Business Transformation Consultant, Process Consultant and Project Manager. He is a Performance Improvement expert who has reengineered organizations and processes to increase efficiency, enhance productivity, shorten cycle times, lower inventories, improve reporting, strengthen controls and reduce operating expenses. He has orchestrated and led teams that designed and delivered Supply Chain Operations/Strategy Solutions to key accounts including aerospace, defense, and technology icons.

Supply Chain

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