ARCHITECTING INTELLIGENT SUPPLY CHAINS

Transcription

1 ARCHITECTING INTELLIGENT SUPPLY CHAINS August 2018

2 WHAT CHANGED? THE RULES CHANGED TODAY CONSUMERS HAVE CHANGED They re increasingly Connected, Informed, Demanding, Engaged and Responsible. THE ATTACK OF THE ANTS Smaller, nimbler CPG players are capturing consumers hearts and minds. SALES GROWTH Top 25 3% BE THERE FOR YOUR CONSUMER Brands need to be omnimodal to be relevant to consumers Smaller Players 97%

3 AND MILLENNIALS ARE RUNNING THE SHOW DESIRE DECIDE DELIGHT Health and Wellness Social Footprint Experiences Fragmentation Switching Peer Influence Personalisation Relevance Authenticity

4 BRAND RELATIONSHIPS AND CONSUMER EXPECTATIONS REDEFINED Surprise Me/ Trend Watch Expert Advice/ Social Commerce Targeting Underserved Segments Green and Clean Pure, Natural and Good for the Earth Made by Me/ Made for Me Keep My House Clean For Me Replenish Now, Replenish for Me Beauty & Personal Care Making Sure I Never Run Out of My Favorites Laundry & Home Care Medicine + Beauty Home On-Demand Beauty Do It for Me Rent a Wardrobe Marketplaces Supply + Demand Priceline for Dentists On-Demand Emerging Markets Pure, Natural and Good for My Family Baby Marketplaces Nourish My Baby Data-Enabled Platforms Easy Replenishment Oral Care Keep Baby Safe/ Take Care of My Baby Baby Care Making Sure I Never Run Out of My Favorites Special Products for Special Needs Natural/ Organic Cool Moms & Dads Source: Accenture Research analysis, CB Insights, Capital IQ

5 BE THERE! OR LOSE. THE CONSUMER IS LESS SKEPTICAL ABOUT NEW TECHNOLOGIES According to a recent survey, the percentage of consumers who said they are likely to at least use this method as an occasional way of purchasing: Replenishment Subscriptions Smart Reordering household products 65% fresh food 61% 58% personal care products Consumers who reported mistrust as the reason they don t use these services is going down: Smart Reordering 49% 34% % 44% Replenishment Subscription

6 RELEASE THE VALUE CHAINS- BECOME A STRING OF PEARLS SOURCE MANUFACTURE DELIVER SELL BUY, USE & RECYCLE Demand-Driven, Real- Time Procurement Open Innovation, Co-Creation Partner for Last Mile Capabilities Transforming Business Models and Experiences Consumer in Control DISRUPTORS

7 IN MARCH 2017, ACCENTURE CONDUCTED RESEARCH TO UNDERSTAND FUTURE TRENDS AND THEIR IMPLICATIONS ACROSS THE SUPPLY CHAIN Supply chain professionals 6Industries Accenture supply chain professionals 6Countries/ markets 30 + One-on-one interviews

8 CUSTOMER EXPECTATIONS ARE CHANGING SWIFTLY 45% of executives are worried about increasing customer expectations impacting businesses by 2025 The increase in customer expectations span multiple considerations 76 % want faster fulfillment 69 % want sustainable products 76 % want more customization 71 % want a wider range of choices 73 % want more reliability Copyright 2018 Accenture. All rights reserved. 8

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10 OVER A NEW NORMAL IS ON THE HORIZON FOR THE SUPPLY CHAIN FUNCTION With customers, competitors and digital technologies becoming disruptors, corporate leaders are paying more attention to the role and design of the supply chain operating model. 70 % 26 % 9:1 95 % 50 % of executives have already invested in AI more supply chain jobs by 2020 demand to supply ratio of jobs of executives will use IoT in next three years of enterprises will create or partner with industrial platforms Copyright 2018 Accenture All rights reserved. 10

11 ORGANIZATIONS WHO BUILD A NEW SUPPLY CHAIN WILL HAVE A COMPETITIVE ADVANTAGE... KEY CHARACTERISTICS: CUSTOMER CENTRIC CONNECTED LEARNING AGILE SERVICE- ORIENTED Copyright 2018 Accenture All rights reserved. 11

12 THIS WILL REQUIRE A NEW APPROACH TO SUPPLY CHAINS CONFIGURE the supply chain into a sustainable, asset-light ecosystem. OPERATE the connected ecosystem via a customer serviceoriented liquid workforce. CONNECT with external parties using intelligent technology for real-time E2E visibility. OPTIMIZE day-to-day operations using analytics, performance monitoring and innovation. Copyright 2018 Accenture. All rights reserved. 12

13 ENABLED THROUGH 8 KEY BUILDING BLOCKS LIVING SEGMENTATION ASSET-LIGHT SOLUTIONS CONTINUOUS INNOVATION PARTNERSHIPS & COLLABORATIVE PLATFORMS APPLIED INTELLIGENCE & PERFORMANCE MGMT. REAL-TIME E2E VISIBILITY DATA-LED WORKFORCE SERVICE-ORIENTED OPERATING MODEL Copyright 2018 Accenture All rights reserved. 13 (underpinned by) DIGITAL INFRASTRUCTURE

14 DIGITAL PLATFORMS WILL ENABLE CONNECTIVITY & COLLABORATION WITH EXTERNAL PARTNERS IN THE ECOSYSTEM ILLUSTRATIVE PRODUCT DESIGN The unique value-chain networks used to serve the micro-segments will be based on interconnected digital platforms LAST-MILE COURIER MFG CUSTOMER SHIPPER DC MFG BUYERS TRANSPORT PLANNING REVERSE LOGISTICS Platforms will enable the supply chain to connect in real-time with assets, processes & people, both within & outside their own organization A governance model that manages and monitors the flow of data and goods will be needed, and can be decentralized (like in blockchain) or a centralized entity TRANSPORT RETAIL DC STORE All legs of supply chain will be designed in a way that will give possibility to plug & play Copyright 2018 Accenture All rights reserved. Owned Platform Value-Chain A 14 Partner Platform Value-Chain B

15 A DATA-LED WORKFORCE, COMPRISED OF INTERNAL, EXTERNAL & AUTOMATED TALENT WILL PERFORM REAL-TIME E2E EXECUTION A NEW WORKFORCE MIX NEW SKILLS FOR NEW ROLES SOURCED IN INNOVATIVE WAYS NEXT 3 5 YEARS ROLE SUPPLY CHAIN MANAGERS LOGISTICS MANAGERS PLANNERS PROCESS & SYSTEM ENGINEERS TRANSPORTATION PLANNERS ORDER FILLERS & WAREHOUSE OPERATORS STORAGE & DISTRIBUTION MANAGERS CUSTOMER SERVICE REPS UP TO: 30% 40% 40% 40% 40% 60% 50% 50% Source: Accenture Organizational Insights, 2017 TECHNOLOGY (AI/Robots) AI/RPA HUMAN Adaptive Workforce 70% 60% 60% 60% 60% 40% 50% 50% Fixed workforce NEW ROLES: Value Chain Architects, Orchestrators, Functional Specialists/COE, Segment Specialists, Data Scientists, Digital IT Engineers NEW SKILLS: Advanced problem solving, decision making, analytics, data management, collaboration (across functions & with machines), risk management and interpersonal skills Consumers Publicly Available Talent Partners Company Affiliates Core Workforce (Permanent Employees) Copyright 2018 Accenture All rights reserved. 15 See slide notes for roles descriptions

16 INNOVATION. APPLIED. NOW. STEM A smart, connected ecosystem to link spirit brands directly to their customers Ethnographic research Opportunity identification Business design Industrial design UX design Experience design Technology integration VIDEO AVAILABLE HERE Copyright 2018 Accenture All rights reserved. 16

17 MAKE YOUR FIRST MOVE THERE ARE MANY WAYS TO BEGIN THE PATH TO SUPPLY CHAIN TRANSFORMATION. THE MOST IMPORTANT STEP IS TO GET STARTED. FIND A CHAMPION EMBRACE INNOVATION BUILD THE FRAMEWORK SET PRIORITIES There is no one-size fits all solution. Intelligent Supply Chains building blocks are dynamic and flexible to guide your transformation journey. UNLEASH THE POWER OF INTELLIGENT SUPPLY CHAINS Copyright 2018 Accenture All rights reserved. 17

18 SUDHIR SINGH MANAGING DIRECTOR HEAD, SUPPLY CHAIN & OPERATIONS CONSULTING, UK & IRELAND +44 (0) Executive Assistant: Alice Bracken Pierre OConghaile MANAGER SUPPLY CHAIN & OPERATIONS CONSULTING, IRELAND Copyright 2018 Accenture All rights reserved. 18