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Digital Supply Chain

Digital Supply Chain

Digital supply chain management can transform a company’s ability to anticipate and serve customer needs, starting with a focus on world-class demand sensing; controlling product flows; and optimizing customer deliveries.

Digital supply chain technologies are not new; companies have been using them for years to improve service and reduce cost. But now, thanks to the wide availability and adoption of much more powerful digital technologies, including advanced analytics and cloud-based solutions, companies are generating dramatically better returns on their investments. Leaders in digital supply chain management have 40% to 110% higher operating margins and 17% to 64% fewer cash conversion days.

The explosion of digital and data has allowed the emergence of the supply chain of the future, allowing companies to:

  • Understand customer needs and more accurately match them to supply and inventory.
  • Optimize the network to build a virtual supply chain which optimizes the manufacturing, distribution, and logistics footprint.
  • Bring end-to-end visibility to flows enabling performance management and operational interventions.

BCG leverages predictive analytics to power up demand forecasting; optimize distribution with scenario-modeling and geoanalytics; and build a centralized control tower, bringing real-time, end-to-end visibility over the supply chain. In doing so, we support our projects in four dimensions:

  1. Conceptualize and implement supply chain control towers.
  2. Design, execute, and transfer advanced-planning applications.
  3. Create optimized networks and enable clients to implement and maintain them.
  4. Specify and adapt new organizations, processes, and IT infrastructure.

Our Digital Supply Chain program helps clients carry out this transformation, in a self-funded three-step approach:

  • Step one: Ignite. We self-fund the journey through agile design sprints for one or two use cases.
  • Step two: Pilot. We apply use cases to two or three end-to-end “brilliant flows,” while industrializing and adapting processes to new analytics.
  • Step three: Scale. We scale up to all flows in the network while embedding agile and transferring digital capability to client using Build-Operate-Transfer.

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Meet BCG's Expert in Digital Supply Chain

  • Asia-Pacific leader, BCG TURN—turnaround, restructuring, and transformation
  • Leads BCG's global work in supply chain management
  • Leads BCG’s materials and process industries sector in Asia-Pacific
  • Lean manufacturing and production systems
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