By 2020, there will be a 30-fold increase in Internet-connected physical devices In fact, Gartner, the world's leading information technology research and advisory company, writes, “The Internet of Things (IoT) is forecast to reach 26 billion installed units by 2020, up from 0.9 billion just five years ago, and will impact the information available to supply chain leaders and how the supply chain operates.”
Organizational leaders must strategize and advance their efforts to take advantage of the new digital transformation in supply chains.
According to Center for Global Enterprise (CGE), a digital supply chain can lower procurement costs by 20 percent, reduce supply chain process costs by 50 percent, and increase revenue by 10 percent.
Digital Enablers for Supply Chain Management
From the Internet of Things (IoT) and big data to supply chain visibility and simulation tools, digital transformation is driven by a myriad of digital trends (see Figure 1). According to GT Nexus, “communication between organizations is at the heart of supply chain transformation, and supply chain visibility platforms, big data analytics and the cloud all work together to provide better communication into global processes and events.”
Organizations must reimagine supply chain operations as a “more connected, intelligent, scalable and rapid” system than traditional supply chains. To do this, organizations must derive insights from all these technologies and apply them to business decisions. No matter how big or small an organization is, its ability to harness the power of its data is fundamental to the success of its supply chain.
Succeeding at Digital Transformation with LMI
For organizations to survive and obtain a competitive edge in today’s ever changing business environment, they must remain agile, innovative, people-oriented, and leverage the benefits of technological evolutions to enhance the overall customer experience. To do this, organizations must develop a clear, yet impactful, supply chain strategy.
While a digital supply chain has its benefits, many organizations do not know how to strategize to realize value from their investments or even where to begin. We augment our expertise with industry prevailing practices and LMI-developed tools to optimize supply chain processes.
LMI has helped many clients improve their supply chain efficiency and effectiveness, enhancing both operations and outcomes. Some examples of our work:
- We provided an end-to-end assessment of Amtrak’s supply chain, looking at the organization’s procurement processes, finance practices, material management, and maintenance against railway best-practice benchmarks. The recommendations we proposed have improved Amtrak’s inventory management decision-making and the day-to-day operational effectiveness of its procurement organization.
- We helped the Centers for Disease Control and Prevention (CDC) develop the Strategic National Stockpile of vaccines and helped the U.S. Department of Agriculture (USDA) develop the National Veterinary Stockpile. We determined which products to store, developed processes for product rotation, and identified processes for stockpile deployment that accounted for limited logistics capabilities at the local government level. Our support helped CDC and USDA successfully establish and operate their medical stockpiles.
At LMI, our supply chain management experts take a comprehensive, end-to-end look at logistics functions and their component parts to ensure they run optimally. Whether our clients need an overall alignment of their supply chain with industry best practices or a “deep dive” into an underperforming element, we have the experts, tools, and the unique methods to assess performance and devise strategies for delivering tangible improvements.