Change is happening at an unprecedented rate. Empowered by technological advancements, the demands of customers and ways to serve them have evolved so rapidly that “adapt or die” has become the mantra for corporate senior managers across the globe.With the average lifespan of companies in the Fortune 500 now under 20 years, today’s leading organizations need to be customer-centric, capability- and platform-driven, and have a strong focus on ease of engagement, coupled with relentless innovation.
Supply chains that leverage digital technology and grow and evolve at a rapid pace are foundational to supporting enterprises in the Transformative Age. At EY, we wanted to better understand the current state of digital supply chain transformation and whether companies are keeping up with shifting consumer preferences. We surveyed 500 C-suite and senior level executives at organizations greater than $1 billion in revenue in North, Central and South America,and across multiple sectors.
What we found was interesting,though not surprising —most companies identified themselves in a state of transformation. A resounding 86% of companies are building digital supply chains, and those who are more advanced in digitally networking with suppliers are seeing a direct impact on increasing market share. However, those at the lower end of the spectrum are seeing market share decrease.
Our survey discovered the two most important success factors in building a successful supply chain: end-to-end visibility (51%) and real-time responsiveness (46%). This makes sense as the market rewards those who can respond the quickest to changes in demand and supply, which in turn requires visibility to quality information from across supplier networks. Underpinning these capabilities are the latest technologies, such as data analytics, Internet of Things, control towers and artificial intelligence to capture, analyze and respond to the information and support people with “smarter” decision-making.