Just 4% of Companies are there Now, Study Finds

Much is expected of chief supply officers. No surprise there.

Supply Chain Digest Says...   The report also argues that “AI positions supply chain leaders to get exponential value out of data.” What do you say? Click here to send us your comments   Click here to see reader feedback

A new survey report from the supply chain practice at consulting firm Accenture puts it this way: “Given that the supply chain is the lifeline of the business, all eyes are on its leaders to transform it to flex with fluctuating demand and redefine resiliency.”

It adds that the new world for CSCMOs revolves around the “three Rs” - relevancy, resiliency and responsibility – a triple mandate.

However, CSCOs are very much constrained by significant “resource, technology and funding limitations,” Accenture notes.

The new report is based global, cross-industry study of over 1,100 senior executives, including 254 supply chain leaders.

The report offers a supply chain maturity model, as shown below, with each of the four levels of maturity assigned attributes across the dimensions of technology, talent, processes and data. The highest level of maturity, or what Accenture calls “Future Ready,” can deliver 5.8 percentage points in increased profitability, and 18.8% efficiency gains, the research says.

Now this is interesting. In this year’s survey, just 4% of companies said their supply chain were at this “future ready” state. But 34% believe their organizations will reach that elevated state by 2023. SCDigest will suggest things just don’t change that fast.

Why aren’t a higher percentage of companies at the future ready state?

“The supply chain function is notoriously siloed,” the report notes. “This can impede leadership’s ability to execute an integrated and centralized supply chain strategy that brings all parts of the value chain together around a shared set of business and customer outcomes.”

Source: Accenture

Many supply chain functions are constrained by aging legacy technology, the report also notes.

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What can CSCO’s do to get to the highest levels of maturity? Accenture offers three recommendations:

1. Know the Ultimate Goal: In part that means CSCOs need to view every area of supply chain operations as a part of a greater whole dedicated to providing value beyond cost savings. It also says that “Supply chain leaders can drive value at the ‘seams’”

2. Know the Key Steps: This seems misnamed, as it is all about technology. The report notes that “As powerful as data is for transforming supply chain operations, most organizations have yet to fully exploit its power. Data is often trapped in silos or left untapped because organizations don’t have the tools they need to extract insights from it.”

The report also argues that “AI positions supply chain leaders to get exponential value out of data.”

3. Know How to Leapfrog Maturity Levels: This is about building ecosystem relationships, Accenture says. That includes leveraging “multi-party” systems to create visibility and enable collaboration.

Now is the time to make your move to intelligent operations, Accenture concludes. While of course there are many challenges, this situation creates “a silver lining - the opportunity for a relevant, resilient and responsible supply chain that delivers for all stakeholders.”

What do you think of Accnture's report or maturity model? Let us know your thoughts at the Feedback section below.