NextGen Supply Chain Innovations

Scott Sopher
Principal, Deloitte Consulting LLP
November 14, 2018

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 Digital Revolution and Exploding Customer Expectations

On-Demand Always On

• The digital revolution is fundamentally changing • An astounding array of information is now at the
consumer behavior fingertips of consumers at nearly instantaneous
speeds
• Increased comfort with technology used for online
transactions • The net implication for supply chains is a challenge to
perform flawlessly, efficiently and transparently
• Shorter attention spans, more demanding and expect
shorter service cycles, more visibility • Digital order confirmations, status updates, in-route
shipment and delivery vehicle tracking information, on-
• Customer expectations for faster, better service are demand order fulfillment and proof of delivery
rapidly escalating

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 Supply Chain Challenges

ALWAYS-ON SUPPLY CHAIN

CROSS-CHANNEL SPEED OF DELIVERY

INTEGRATED FULFILLMENT / SEAMLESS CUSTOMER EXPERIENCE

INVENTORY ALIGNMENT AND VISIBILITY

CONTRIBUTION MARGIN INSIGHTS

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 Supply Chain Innovation Survey
The 2018 MHI Annual Industry Report, for the fifth consecutive year, reflects the views of over 1,100
manufacturing and supply chain industry leaders on supply chain innovation
50% of participants are executives holding the 47% reporting annual sales in excess
75% are manufacturers, distributors or service role of CEO, Vice President, or General of $100 million, and 10% reporting
providers.
Manager or Department Head. $10 billion or more.

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 Adoption Rates for 11 Leading Innovations

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 Survey Highlights

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 Key Innovations for NextGen Supply Chains

Robotics and Predictive Wearable and mobile Driverless vehicles

Sensors and Auto ID
automation analytics technology and drones

• The design and use of
computer-controlled
machines to
automatically perform
a series of actions or
tasks traditionally
performed by humans
• The practice of • Technology devices • Technologies to • A computer-guided
extracting information that can be worn or automatically identify, device that can move
from existing data sets carried, either as locate and profile about without a human
in order to determine external accessories supply chain objects being in control, either
patterns and trends to or as part of and to capture and on the ground (a
predict future events clothing, having the communicate vehicle) or in the air (a
or outcomes capability to exchange associated data and drone)
data between the information across the
devices and a network supply chain

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 Attributes of NextGen Supply Chains

1 Digital 6 Transparent

2 Connected 7 Secure and trusted

3 Collaborative 8 Agile and adaptive

4 Always-on 9 Effective and efficient

5 Forward-looking analytics 10 Safe and sustainable

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 Vision of NextGen Supply Chains

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 Actions for Supply Chain Innovators

What Leaders Should Do

1. Embrace the digital supply chain future and

look forward, not backwards
2. Ask: what value can my company bring to the
digital supply chain?
3. Invest in innovation and leverage technology to
bring that value
4. Collaborate with partners…and competitors for
C-change to the industry
5. Get started: Think Big, Start Small, Act Fast!

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Q&A

Download the complete report at MHI.org

11
 Thank you

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