Capgemini Urges Supply Chain Managers to “Focus” on Digitization

Given the urgency brought on by the current Coronaviris crisis, will supply chain managers may finally be developing the “focus” needed for digitization of their networks and operations?

Cyndi Lago, VP of Supply Chain at Capgemini Invent NA, told SCMR in a recent interview that while most large organizations grasp the importance of supply chain digitization though some companies have spread their investments too thinly and are struggling to scale pilot initiatives.

“Because of that lack of focus, only one in seven organizations successfully scale initiatives from a pilot stage,” she says. “Transformation efforts need to be driven by C-suite leadership and senior management, who advocate and provide strategic focus on objectives and what to prioritize.”

Further more, the recent market disruptions could be motivation for better focus on such key initiatives to deploy them at scale and secure leadership buy-in for this transformation.

“We might start seeing increased investment as leaders realize supply chain digitization is integral to achieving wider business objectives, for example to increase transparency and improve customer satisfaction, that help mitigate disruptions,” concludes Lago.

Even before the current virus emergency, heightened demand for products coupled with unforeseen factory delays was a concern says Capgemini.

An NRF study recently found that as a result of recent events in China, 40% of NRF members are seeing supply chain disruptions and 26% expect to see disruptions.

NRF expects imports to jump 9.3% year-over-year in May as Chinese factories resume most of their production, with June up 9.6%.

A recent Capgemini report surveying 1000 supply chain executives found that while half consider supply chain digitization to be in their top 3 corporate priorities, 86% are still struggling to get projects beyond the testing stage, presenting a clear gap between expectations of what supply chain digitization can deliver and the reality of what companies are currently achieving.

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