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Why becoming demand driven is crucial for a successful digital transformation
Journal of Supply Chain Management, Logistics and Procurement,
2
(2),
167-180
(2019)
Abstract
As companies are moving aggressively to digitally transform their supply chains, one needs to take a step back and consider the facts. Many digital transformations in supply chain fail to deliver. Operational and financial performance in many manufacturing organisations is not improving. Something is going wrong. This paper explores what it is that is going wrong: namely that supply chains are designed based on a theoretical model that is not matched to reality and that the increase in volatility experienced in today’s environment is bringing supply chains to their breaking points. Digital transformations therefore may often make things worse by accelerating bad practices and the speed at which managers take wrong decisions. To redress things, companies need to redesign and operate their supply chains to reflect how supply chains really work. Then, and only then, can digitisation and automation be successfully used to increase operational performance, cash flow and returns on invested capital (ROIC).
Keywords: digitisation; flow of relevant materials and information; demand driven supply chain; demand driven MRP (DDMRP); complex systems; systemic thinking
The full article is available to subscribers to the journal.
Author's Biography
Patrick Rigoni is a founding partner of SmartChain International LLP. Following a PhD in biochemistry he moved to the pharmaceutical industry, where he filled several roles including production manager, operational excellence leader, lean project manager, strategic capacity manager. All Patrick’s roles had one thing in common — driving operational performance through application of best practices in operations management. In his multidisciplinary career, he used Six Sigma to solve ‘unsolvable’ quality issues in manufacturing, computer modelling to optimise the schedule on multi-constrained manufacturing environments, simulation to optimise end-to-end supply chain for new product launch and developed planning tools for demand driven planning, among others. SmartChain is dedicated to follow this legacy of Operational and Business Excellence with focus on manufacturing and supply chain organisations. This includes supporting clients in their business transformation journey to become demand driven.
Citation
Rigoni, Patrick (2019, December 1). Why becoming demand driven is crucial for a successful digital transformation. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 2, Issue 2. https://doi.org/10.69554/UQGP6821.
© Henry Stewart
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Publications LLP