Research suggests improved digital supply chains lead to a procurement cost reduction
NEW YORK—The digital supply chain initiative (DSCi), a new line of research conducted by the Center for Global Enterprise (CGE) in partnership with CREATe.org, has published white paper, Digital Supply Chains: A Frontside Flip, a report designed to provide practical steps that companies can take today to prepare for the digital supply chain of the future.
The paper presents evidence from 24 top executives running the world’s largest supply chains the centre said. The subjects believe enterprise supply chains could be the most important transformation for companies over the next five years. The research shows an approach to enterprise supply chain management—focus on the customer and maximize demand. That is, flip the focus to the customer-facing side—the —of the business.
The research suggests improved enterprise Digital Supply Chains (DSC) can lead to a 20-percent reduction of procurement costs, a 50-percent reduction in supply chain costs, and an increase in revenue of 10 percent. This is true across all industries, even some, like financial services, that traditionally don’t include supply chains in revenue generating strategies.
“Successful companies will take advantage of new management practices, a continuously expanding data reservoir and new technologies relevant to DSCs if they are to have future competitive advantage and delighted customers,” said George Bailey, CGE’s DSCi project leader.
The centre said that the report will help CEOs, supply chain executives and anyone interested in leading edge supply chain developments and operational improvement in the following ways:
The Center for Global Enterprise is a nonprofit, nonpartisan research institution devoted to the study of global management best practices, the contemporary corporation, economic integration, and their impact on society.