Supply chain innovation in a digital world

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Even though digital capabilities are recognized as an important driver for the future, today’s supply chain executives are still focused on driving cost savings. While cost savings and cost-efficiency will remain an important part of every senior manager’s performance area, this misplaced emphasis on spend in a digital world has the potential to imperil an entire company.

The increasing availability of information amplifies the impact supply chains have on consumers — and on corporate reputations.

We do not need to look to the future to witness the huge potential impact of digital: a few years ago, one online retailer lost almost US$6 million of sales following a site outage that lasted less than an hour. Examples such as this show that it’s not only digitized products, such as music or video, but also physical ones that will be augmented by information within a digital world. Information will be a key building block for physical products within a digital economy.

The article explores the emergence of a digitally based supply ecosystem across a range of industries. It also seeks an answer to the question of what this means for supply chain leaders, their companies and their careers.

The article was written by:

  • Dr. Mervyn G. Maistry
    Managing Partner, Digital Strategy & Transformation, EY Germany
  • Christian Neumann
    Manager, Digital Strategy & Transformation, EY, Germany

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