Digital Supply Network

Supply chains in the digital age are becoming shorter, faster and smarter. Traditional, linear supply chain ‘nodes’ – such as develop, plan, source, make, deliver or support – are increasingly being transformed into a set of dynamic networks around a digital core, also known as digital supply network (DSN). The interconnectedness of these DSNs substantially increases responsiveness to change and eventually allows more differentiation in the market.

With DSNs companies can shift their focus away from simply managing functions (for example, sourcing or manufacturing) to driving real value, achieving business objectives and hence fuelling growth. Quality sensing in production, for instance, can feedback into digital development, enabling the tracking of goods, allowing end-to-end visibility and consequently supporting synchronised planning.

Intelligent supply and smart manufacturing can be achieved with many Industry 4.0 technologies, such as analytics-driven sourcing or 3D printing. Cognitive planning and/or smart product sensors can be used for dynamic fulfilment by automatically suggesting replenishment orders. In addition, real-time input from connected customers creates end-to-end transparency across the whole DSN.

Findings from the Deloitte Industry 4.0 Paradox study suggest that the supply chain generally plays a key role in digital organisations. 62% of global C-suite executives see the supply chain as a top priority for digital investment. However, despite these planned investments, the supply chain is still not perceived as a centre of innovation. Only 35% of global C-suite executives see the supply chain function drive digital innovation in their organisation. This is considerably lower than those who view IT (60% of respondents) and operations/production (57%) as the main drivers.

In Switzerland, many supply chains still consist of different and independent functions such as research, procurement, manufacturing and logistics with limited interconnectedness. An end-to-end supply chain view does often not exist, despite some progress in recent years. There is also a lack of knowledge about new technologies as well as investment reservations among many Swiss companies. Often they assess that many supply chains can still be improved more through traditional optimisation measures rather than digitisation.

We invite you to download the study with insights from Deloitte global research and interviews with executives from leading Swiss companies and hope that you get inspired about how DSNs can enable your company to grow.