Digitally integrated supply chains are set to transform the way manufacturers deliver value to their customers, and represent a great opportunity for businesses that “make.” Disconnected links and waste in the supply chain have traditionally caused bottlenecks, late order fulfillment, and missed sales—frustrating manufacturers.
But according to a McKinsey study, companies that achieve a high level of supply chain integration could slash operational costs by up to 30 percent and reduce missed sales opportunities by 75 percent. Meanwhile, some 89 percent of C-suite executives expect a higher level of collaboration with partners over the next 3 to 5 years.
By improving production times, reducing response and transit times, and removing barriers to information exchange with partners, manufacturers will be able to build more responsive and enduring supply lines that produce higher quality, more competitive products.
Manufacturers can pursue the fruits of supply chain integration in four simple steps:
- Double down on core competencies and outsource inefficient processes to take advantage of economies of scale.
- Integrate Internet of Things (IoT) technologies to create a digital twin of machines, processes, and products to gain end-to-end visibility of the supply chain.
- Forge data-share partnerships to integrate external information into internal decision making.
- Adopt the tools for change to make digitally integrated supply chains a reality.