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Supply Chain Graphic of the Week: No Wonder CEOs Want Digital Supply Chains


McKinsey Says Potential Gains Substantial, though Specifics Remain Fuzzy


May 17, 2019


As we've reported many times, survey after survey has found CEOs and other executives place digitization of the supply chain as a top priority - even if what that really means remains a bit fuzzy.


And it's no wonder that is the case, when influential consultants like those at McKinsey hit execs with analysis such as that shown below, which shows the savings potential from supply chain digtzation when added to functional excellence in various areas:



For example, McKinsey says a company can reduce transportation and distribution costs by 10-15% from achieving functional excellenece - but make that 15-30% if you also add in digitization.


Exactly where those savings come from is not detailed - but we can understand why CEOs want some of this nevertheless.




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