The Supply Chain Control Tower has been saved
The Supply Chain Control Tower
Orchestrate and drive visibility and valuable right time insights
Across the globe, and across industries, supply chains are full of geopolitical complexity, regulatory challenges, and operational risk. The impacts of COVID-19 only amplify this wide range of challenges, as globalized logistics networks are compromised, customer demand becomes more volatile, and supplier and inventory status are disrupted, requiring a more dynamic response.
- From visibility to value
- Essential elements of a Control Tower
- Potential benefits
- Our Control Tower solutions
- What makes a Deloitte Control Tower special?
From visibility to value
Despite the many targeted technologies available to manage continuously growing data and supply chain complexities, many supply chain leaders feel that they lack the visibility they need to optimize network performance, take a proactive stance on event management, and ensure an agile network that is responsive to changing constraints.
A Control Tower is a dynamic end-to-end capability that enables strategic priorities, solves specific business issues, and delivers measurable benefits by implementing three interwoven components:
- A way of working in the organization and beyond; insight-driven and exception-based.
- An organization that understands business issues and has the analytical capability to generate actionable insights and improve the process.
- A data insight platform that monitors transactional-level data from internal and external sources, automatically separating issues and prompting action by the user.
Working in orchestration with your existing technologies and systems, Control Tower capabilities can help proactively manage supply chains in right time. This allows leaders to focus on the areas that are causing the majority of issues, while the rest of the supply chain can continue functioning, business-as-usual—driving maximum value without a large-scale implementation.
Developing a Control Tower can offer many potential benefits, such as:
- Increased revenue and accelerated speed to market.
- Better margins and increased cost control.
- Improved asset utilization, including inventory.
- Reduced lead times, optimized planning, and faster recovery from disruption.
- Enhanced risk mitigation, increased responsiveness, and improved process controls.
Our Control Tower solutions
We have delivered 20+ control towers across five industries, resulting in $1B+ of value for our clients through increased revenue, improved margins, strengthened risk management, and heightened asset efficiency.
|Voice of customer
Uses natural language processing and machine learning to analyze unstructured data, generating product insights about the quality and customer value.
Proof point: Broadened scope of “consumer listening” by 7X for leading consumer goods.
Enables near-real-time planning by integrating inputs from across supply network pertaining to demand, supply, inventory, and operations.
Proof point: Identified excess inventory of nearly $100M with $5M in quick-win reduction opportunities.
|Sourcing and procurement
Optimizes sourcing and procurement to identify indirect and direct spend reductions across suppliers.
Proof point: Annualized benefits of $75M, with a pipeline to additional savings.
|Supply chain risk
Proactively identifies suppliers and/or commodities that pose elevated levels of supply chain risk.
Proof point: Prioritized more than 6,000 commodity-supplier combinations into an actionable subset of high-risk pairs.
Improves asset efficiency, increases throughput, and provides an integrated and holistic view of plant operations to all stakeholders, from plant operator to line manager.
Proof point: Enabled continuous improvement in asset efficiency and increased throughput by 9 percent.
|Quality and recall management
Detects and prioritizes vehicle safety issues using advanced analytics algorithms to more quickly and accurately scope global recalls.
Proof point: Saved $200M in annual recall-related repair costs.
Enables instant root-cause analysis of out-of-service planes while driving accountability through enhanced performance management.
Proof point: Identified $30M+ opportunity in material cost reduction through effective sourcing and vendor management.
Provides global product visibility across all shipping lanes and inventory levels to streamline material flow and improve availability.
Proof point: Program earned a 212 percent ROI with a payback period of less than one year.
|Global trade and customs
Identifies, prioritizes, and resolves issues to improve the facilitation of compliant cross-border flows (such as missing tariff codes).
Proof point: Resolved $1.7M in purchase orders with missing HS codes in the source system.
Identifies real-time cost reduction and service-level improvement opportunities in a series of user-specific views for immediate action and ongoing accountability.
Proof point: Reduced the time to identify root causes of cost improvement opportunities from two to three weeks to about five minutes.
A suite of high-value, data-driven insights that enable clients to drive revenue growth, achieve inventory excellence, and enhance order management capabilities.
Proof point: Identified and actioned $200M+ in cost savings opportunities without negatively affecting service levels.
Used real data and transactions to reduce and eliminate points of failure across the supply chain.
Proof point: Ensured delivery to internal and external targets, on-time and in-full.
What makes a Deloitte Control Tower special?
- A leader in Enterprise Insights Services by Forrester1
- A leader in Data and Analytics Service Providers by Gartner2
At Deloitte, we ensure that every Control Tower is tailored to specific client needs—no matter where you are in your digital journey—by taking a collaborative, iterative approach emphasizing speed to value.
- Team: Our talent model revolves around “bilingual” teams that bridge the gap between traditional business issues and cutting-edge data science and technology and pulls through the years of experience Deloitte has from serving its clients in this space.
- Speed and scale: Through experience across a broad range of use cases, Deloitte has developed a ready-to-configure platform for any challenge—which can be deployed in weeks, not months—a scalable environment, architecture, and interface that grows with you.
- Advanced analytics: Advanced analytics have evolved exponentially over the past few years, with problems that previously required significant effort to "solve" being addressed by these advanced techniques (such as AI optimization, machine learning).
- Change management: We prioritize change management efforts because we know that people and processes are critical to ensuring technical solutions are successful.
- Self-funding program model: We prioritize and execute use cases with the highest measurable value for our clients, creating a self-funding program whereby the initial use cases help fund future initiatives.
Deloitte is also uniquely positioned to help operate your new capabilities based on insights generated by your Control Tower organization and technology. Our global teams, spanning a variety of functional areas, can be deployed to address the most pressing challenges, combining our experienced professionals and technology to provide you access to accelerated results with economies of scale.
1 The Forrester Wave™: Enterprise Insights Service Providers, Q2 2020: The 13 Providers That Matter Most And How They Stack Up, Forrester Research, Inc., June 8, 2020
2 Magic Quadrant for Data and Analytics Service Providers, by Jorgen Heizenberg, Twiggy Lo, Gareth Herschel, Ehtisham Zaidi, Saul Judah, Robert Thanaraj, February 10, 2020