Achieving rapid value and ROI from supply chain visibility while building long-term capabilities

Nick Bonny and Rafael Lander
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Nick Bonny: Pharmaceuticals and Life Sciences Operations, USA
Rafael Lander: Pharmaceuticals and Life Sciences Operations, USA

Journal of Supply Chain Management, Logistics and Procurement, 2023, vol. 6, issue 2, 102-111

Abstract: With the recent rapid advances in digital supply chain technologies, companies are investing significant capital in these solutions. So far, however, the results and benefits are falling short of expectations. The current authors have discovered through multiple post-implementation assessments and a detailed survey of senior operations leaders that only 20 per cent of digital supply chain investments return the expected result. By looking deeper into the root causes of these value traps, this paper describes how the authors uncovered ways to improve the probability of successful digital transformation. The paper also examines which technologies are being implemented by companies and discuss how those technologies can help improve supply chain management. In our experience, companies can enhance returns on supply chain investments by adhering to four crucial mantras as part of their digital transformations: 1) quantify the benefit opportunity; 2) build a sustainable digital-focused operating model; 3) align across the enterprise and partners; and 4) prepare the organisation for the needed change. The paper also provides examples of how PwC uses these steps to help increase probability of success and return on investment.

Keywords: return on investment; digital supply chain; digital operating model; digital upskilling; cloud enabled analytics; control tower; supply chain visibility; automation; artificial intelligence; machine learning; robotic process automation; digital twin/simulations; peer benchmarking; digital maturity assessments; digital roadmap; change management (search for similar items in EconPapers)
JEL-codes: L23 M11 (search for similar items in EconPapers)
Date: 2023
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