Transitioning to a networked ecosystem means all the data is in the cloud and any event in the supply chain can be seen by all, at the same time, and worked on simultaneously.
6. Revisit the supply chain operating model
Improve overall business structure to create agility, productivity and tax efficiencies by re-evaluating organizational model, business unit locations, job definitions and capabilities.
7. Review tax strategies
Redesign a tax-effective operating model, and analyze indirect tax optimization to reduce customs and duties costs.
8. Implement a control tower
Visualize supply chain end to end, enable “What if” simulations to sense and respond proactively to disruptions. Leverage predictive analytics to identify and activate alternative supply routes rebalance production mix across plants, relocate capacity available, redirect shipments through self-correcting workflows.
9. Create a digital twin
Utilize a digital replica of physical objects and processes to mimic and test related behaviors, or run a parallel version of your supply network containing the same supply entities, parameters and financial targets to sense and respond to problems, and ultimately create a digitally enabled supply chain.
Anne Johnston Weaver, Senior Manager, Ernst & Young LLP contributed to developing this article.
Summary
Organizations will, from now on, expect their supply chains to be much more resilient and adaptable to future disruptions. On top of this, supply chains will increasingly be viewed as drivers of growth and, therefore, a potential competitive advantage. This will raise expectations on CSCOs. The article suggests some recommended actions for CSCOs.
