Moving from the supply chain to the digital supply network
Abstract
Real-time, digital information has become critical to the success of both today’s 24/7, business-to-consumer (B2C) and business-to-business (B2B) operations, and to their suppliers, manufacturers and partners. Traditionally, companies have operated supply chains with a linear, sequential paradigm, following a model made popular and accessible by the Supply Chain Operations Reference (SCOR) model. Digital technology capabilities such as artificial intelligence (AI), Internet of Things (IoT), machine learning, robotics, additive manufacturing and advanced analytics are not only driving changes to the SCOR standard, but are also raising a new set of questions regarding the nature and relationship of more complex and tightly integrated supply networks. These dynamic, interconnected systems concurrently plan, execute and enable digital supply ‘chains’ — we refer to this next generation model as a digital supply network (DSN). This paper lays the foundation for this transformational journey, by introducing key disruptions that are enabling organisations to move beyond the limitations of traditional supply chains and explaining the core characteristics of DSNs. With the intent of providing a voice of leadership as supply networks become more digital, Deloitte Consulting and the Association of Supply Chain Management will release an initial version of the DSN Capability Model in September 2019 to provide an overview of DSNs. In subsequent releases, we will expand the body of knowledge, helping organisations to understand and build digitally enabled operational capabilities.
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Author's Biography
Chris Richard is a principal in the Supply Chain and Network Operations practice at Deloitte Consulting LLP, focused on supply chain strategy and product development for the semiconductor industry. He has over 25 years’ professional experience in consulting and industry leadership in the semiconductor and high-tech industry. Prior to Deloitte, Chris served in leadership, operations and engineering roles in the semiconductor industry and the military. This included senior engineering and leadership roles at Intel Corporation, where he worked for ten years after starting his career as an Army Ranger. He holds a MS in electrical engineering from MIT, an MBA from the MIT Sloan School of Management and a BS in electrical engineering from West Point.
Jeroen Kusters is a senior manager in the Supply Chain and Network Operations practice at Deloitte Consulting LLP, focused on supply chain management for the technology sector. Jeroen’s principle area of expertise is helping clients increase revenue and improve margins by building a digital supply chain capability, enabled by cloud-based planning technology. As a thought leader in supply chain management, Jeroen specialises in bringing innovative digital solutions to clients addressing complex business challenges. Jeroen is an active author of various supply chain planning books and a driving force behind the development of the digital supply networks concepts developed by Deloitte Consulting in collaboration with the Association of Supply Chain Management. Jeroen started his career in Deloitte Belgium, focusing on complex global manufacturing companies. Jeroen holds a Master’s in business and engineering with a major in strategic management and innovation from the Catholic University of Leuven (KULeuven).
Citation
Richard, Chris and Kusters, Jeroen (2019, September 1). Moving from the supply chain to the digital supply network. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 2, Issue 1. https://doi.org/10.69554/HMDT3375.
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