Digital Transformation Of Supply Chains
Best Practices To Make It Real
We had a fabulous Educational Webinar on Tuesday, April 30th with CGN Global CEO, Harsh Koppula led by Steve Banker from ARC Advisory Group and our COO, Nil Durak. We got to the heart of Digital Transformation leaving all the hype and buzz words behind. See below for key takeaways…
#1 - What is Digital Transformation?
- Digital Transformation is NOT like going to an expensive restaurant where you get the menu, order digital products and pay the bill. Instead it is like going to the gym: Takes a lot of sweat and time to get in shape. The transformational journey in changing processes, mindsets, hearts is core to your success.
- Drop the buzz words and craft a clear and internally consistent vision for the end game. Do not ask for full automation and scenario-based planning at the same time or for the same process.
- Hiring a “Chief Digital Officer” gives “Digital” a C-level focus but it also treats it as a silo. Make sure it is not heavy on hype and light on substance. Having a focus on change management should win the transformation journey for you.
#2 - Why It's Important For You
#3 - Supply Chain Transformation Facts
#4 - 5 Critical Pillars of Success
#5 - What are the Quick Wins?
- Big data is the foundation of everything. Internal data (customer transactions) married with external data (competitor prices, weather (believe it or not), social media) provides versatile predictive models.
- Retail – Markdown/seasonal optimization using machine learning algorithms taking into account competitor prices enable the companies to work with dynamic price elasticity values resulting in maximization of lifetime gross margin.
- CPG – automated identification of external factors in forecasting, automated updates of parameters in inventory optimization and master data management
#6 - How do we manage the risk?
- Taking a test & learn approach with a product category or region and sharing results and experiences works better.
- Evaluate the risk, develop mitigation plans due to possible performance loss during transformation, and persevere. Adjust the course when necessary.
- Hire people with a “Learner mindset”, who ask questions, clarify the “why” in status quo and may disagree with you