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www.us-tech.com Production Who is Driving the


Supply Chain Digitalization? By Pierfrancesco Manenti, Vice President of Research, Gartner, Inc.


representative of supply chain strategies sharing a summary of the most rele- vant, ongoing digital initiatives impacting the supply chain. It was an impres- sive list of initiatives touching every corner of the end-to-end supply chain. The CSCO and the supply chain team were impressed, but they were not


I


aware of all those initiatives impacting their supply chain. Individual supply chain functions drove some of the initiatives, while others were driven from outside the supply chain —from IT, sales and marketing and R&D. Lack of or- chestration and coordination among those initiatives was evident. The CSCO was not in the driver’s seat.


Impact of the CSCO This situation is still common across many organizations, but recent sur-


vey results suggest CSCOs are progressively taking the lead on supply chain digitalization. Those who are successful do so by creating an ad hoc center of excellence (COE) for supply chain digital innovation. In our Team of Tomorrow 2018 Survey, we investigated aspects of sup-


ply chain organizational structure and talent requirements in the light of dig- italization strategies. The picture that emerges from the survey results is typ- ical of a transition time, with three different, equally important approaches. First, for 30 percent of organizations, digitalization is not a matter of


supply chain. Even when it is impacting supply chain, it is the chief informa- tion officer (CIO), chief digital officer (CDO), chief technology officer (CTO), or others who are driving it. Roughly a third of businesses take a siloed approach to digitalization, al-


lowing it be driven by the needs of individual functions rather than by an overall digitalization roadmap for the benefits of the end-to-end supply chain. In the largest portion of respondents, or 40 percent, the CSCO drives an


end-to-end supply chain digital roadmap directly, or in partnership with the CDO, CIO or CTO.


By digging further into survey data, a clear trend appears: the more ma-


ture the supply chain digitalization, the more CSCOs are in the driver’s seat. Nearly 50 percent of companies with an advanced level of supply chain digi- talization have their CSCO driving the digital roadmap.


Supply Chain COE CSCOs cannot create a digital roadmap on their own. Survey data show


that CSCOs from the most digitally advanced supply chain set up a COE to support the roadmap. For example, at Cisco, the company’s supply chain transformation team plays a critical role in enabling the supply chain to adapt rapidly to the changing needs of the business. With digitalization becoming one of the core drivers for Cisco’s supply


chain strategy, the team is essential in driving the digital journey. This team’s goal is to ensure that Cisco’s supply chain is able to capture the values that digital technology offers, while the company transforms its products, business model, operations processes, systems, and policies. At Schneider Electric, the company’s global supply chain (GSC) organi-


zation created a multidisciplinary, centralized lab called the “Center of Digi- tal Innovation” (CODI) to incubate new ideas and bring digital technologies to the supply chain team quickly. CODI allows for small, focused teams to ad- dress supply chain digital projects with a minimal amount of bureau- cracy, thereby accelerating digital in- novation. In 2017, CODI identified 111 new digital opportunities, tested and evaluated 45, and ran proof of concept on 25 projects. Successful COEs report to the


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CSCO directly, but members do not have operational supply chain respon- sibilities. They must have the time to create a roadmap, without being caught up in day-to-day issues. This is not any supply chain team. Members must feel comfortable trying things that might fail. They must celebrate learning from failures. Their mindsets must be about seeking innovation rather than optimization. This is a cultural revolution for supply chain and CSCOs must drive by example. Contact: Gartner, Inc., 56 Top


Gallant Road, Stamford, CT 06902 % 203-316-1200 E-mail: inquiry@gartner.com Web: www.gartner.com r


recently conducted a digital supply chain roadmap workshop with a global high-tech organization that was attended by the chief supply chain officer (CSCO) and the supply chain leadership team. The meeting started with a


August, 2018


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