The Customer Experience

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Supply Chain Management (SCM) has always embraced new technologies that promised to fundamentally change the way supply chains operate: Sea containers were introduced to efficiently ship goods around the globe; computer-supported planning software improved production schedules beyond imagination; and RFID technology promised to revolutionize processes by identifying products without a direct line of sight.

The accelerating digitization of supply chain in recent years has triggered many new technologies that are now becoming relevant for further investigation. All stages in the supply chain are potentially affected: Planning can benefit from the real-time availability of new data and the automation of processes like demand planning or order management; production can take advantage of additive manufacturing; warehouses are seeing performance improvements due to investments in picking automation and self-driving and platooning fleets of trucks are knocking on transportation’s door. We refer to these massive digital innovations that will transform our supply chains as Supply Chain 4.0, or SC 4.0.

Recent research indicates that most of these technologies have reached their technological prerequisites and many are already in pilot test. Figure 1 illustrates an assessment of SC 4.0 technologies based on a recent McKinsey survey among supply chain professionals on the disruption and impact of 53 innovations like automated planning, 3D printing and SC Cloud to name a few. The results highlight seven game changers (e.g., automation in planning/execution, 3D printing and Cloud/platform applications) and 34 innovations where participants expect high impact like no-touch order management, closed loop planning and the Uberization of cargo.’

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