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Digital Supply Chain Strategy - Digital Supply Networks

Turn your supply chain into an always-on strategic differentiator

Organizations are achieving operational performance breakthroughs as digital supply networks enable supply network visibility—and unprecedented insights.

About our Digital Supply Networks services

The Deloitte Digital Supply Networks offering helps senior executives, including CEOs, CIOs, and supply chain leaders, identify and realize new supply network opportunities while managing their inherent complexities. Together with ecosystem partners, such as Singularity UniversityThe Smart Factory at Wichita State University, and the Mobility Innovation Zone at Alliance Texas, we immerse clients in the most forward-thinking perspectives on the future of supply chain, including artificial intelligence, advanced robotics, additive manufacturing, the future of mobility, and the Internet of Things.

Our practice offers deep industry knowledge in all functional areas of supply chain, coupled with robust end-to-end, cross-functional supply chain experience.

We help organizations transform their supply chains by addressing two key areas:

  1. Strategy. We help companies create supply network strategies and engage with ecosystem partners that allow the realization of their business vision and aspirations These strategies may differ by business unit, product, and trade channel. We also help clients explore the “art of the possible” through digital supply network immersion sessions.
  2. Execution. Once the strategy is in place and/or an accretive digital solution is prioritized and chosen, we build, pilot, and deploy the solution(s) using an agile approach. Digitizing the supply network may involve building digital threads that run through each of the existing supply chain nodes, blurring the lines between traditional functions, products, and divisions. We develop and execute on roadmaps that consist of a series of rightsized, rapid “sprints” to quickly deliver incremental value while we continuously iterate and improve.

View more of our thought leadership

Watch the video | Digital Supply Networks: the digital transformation of supply chains

Explore case studies to learn how we are helping clients imagine, deliver, and run more efficient, profitable supply chain operations.

What are Digital Supply Networks?

Dramatic advances in computing memory and processing are spurring entrepreneurs to develop innovative new digital technologies and capabilities—and ushering in Industry 4.0, the fourth industrial revolution. Disruptive technologies, including new sensors and artificial intelligence (also called machine learning and cognitive computing), create the foundation for analytics and conversion between the physical and digital worlds, transforming traditional, linear supply chains into connected, intelligent, scalable, customizable, and nimble digital supply networks.

Digital supply chain management now includes gathering insights from distributed data, sensors, and connected assets to drive actionable improvements via advanced analytical and digital solutions. The Deloitte Digital Supply Networks offering helps companies and business leaders capitalize on this opportunity, create competitive advantage, and compete to win.

Digital Supply Networks: Traditional, linear supply chain nodes are collapsing into a set of dynamic networks, allowing dramatically increased differentiation:

How do Digital Supply Networks work?

Digital Supply Networks establish a “digital thread” through physical and digital channels, connecting information, goods, and services in powerful ways:

  • Physical to digital: Capture signals and data from the physical world to create a digital record
  • Digital to digital: Exchange and enrich information using advanced analytics, artificial intelligence, and machine learning to drive meaningful insights
  • Digital to physical: Deliver information in automated and more effective ways to generate actions and changes in the physical world

Unlike a traditional supply chain model, digital supply networks are dynamic, integrated, and characterized by a high-velocity, continuous flow of information and analytics.

Internet of Things (IoT) solutions are connecting digital and physical worlds in innovative ways—with breakthrough business results.

Explore our IoT offerings

Learn more about Turnkey IoT, our suite of preconfigured solution accelerators

The Deloitte Digital Supply Networks offering can help your team turn your supply chain into a competitive differentiator with the potential to achieve results such as:

  • Reorders and refills. Smart packaging, applications and data can be combined, either automatically or with minimal intervention, to push reorders and refills.
  • Marketing effectiveness. Targeted marketing, combined with data from inventory and competitive pricing, can facilitate dynamic discounting.
  • Direct connection to customers. Increased access to customers can drive sales at the precise point of consumption, for example ordering groceries directly from the refrigerator.
  • Value of data. Gathering, packaging and selling data from existing customer bases can open up new channels of revenue.
  • Speed to market. Effective use of product lifecycle management accelerates every step from product development to delivery and enables innovative products to reach customers more quickly.
  • Cost of R&D. Rapid prototyping can lower the cost of R&D.
  • Cost of raw materials. Digital advances can help identify substitute materials, or can connect buyers to alternate lower-cost sources.
  • Cost of quality. Increased visibility and monitoring can decrease cost of quality. For example sensors can identify root errors and drive process improvements that dramatically increase first pass yields.
  • Cost of service. Digitally gathering data from products and/or users and sending it to remotely located, skilled technicians decreases the cost of service and the cost of transportation of service technicians.
  • Cost of transportation. Automated warehousing robots and driverless trucks utilize analytics and dynamic routing to improve efficiency and reduce accidents and errors.
  • Idle assets. The sharing economy can be leveraged for high cost and under capacity assets. For example, a company that only operates two shifts per day could sell its third shift to another company.
  • Supply chain downtime. Predictive maintenance can maximize performance and reliability of manufacturing devices.
  • Idle workforce. Sensor-enabled labor monitoring can optimize workforce assignments and scheduling.
  • “Click-to-ship” time. Automated inventory management can dramatically increase supply chain efficiency.
  • Error propagation. Augmented Reality can assist in maintenance and reduce error propagation and rework costs.
  • Geographic responsiveness. Increased connectivity enables rapid responses to unexpected issues, such as natural disasters or supplier shutdowns.
  • Brand responsiveness. Increased insight to customer concerns or issues enables fast responses to events like food contamination outbreaks.
  • Proactive risk mitigation. Increased transparency demands proactive assessment of risks and fast response to customer demands.

Digital Supply Networks and Additive Manufacturing

Additive Manufacturing Services

We think of ‘additive manufacturing’ as the scaled application of 3D printing technology. Deloitte is helping clients adopt—and adapt to—this game-changing driver of Industry 4.0. Our goal is to help customers accelerate product design, speed production, create more flexible supply chains, and optimize the manufacturing lifecycle. Learn how additive manufacturing can transform your organization.

HP Alliance

Deloitte Consulting LLP and HP are working together to accelerate the digital reinvention of global manufacturing and supply chains through additive manufacturing. We combine our leadership in professional services and digital supply chain transformations worldwide with HP’s award-winning Multi Jet Fusion technology. Read more on the key solutions we use to help our clients realize the power of incorporating additive manufacturing into their digital operations.