40% Organisations With A Turnover Of Less Than $2 Billion Don't Have A Digital Supply chain Strategy: Survey
Digital supply chains functions better when it is under the fold of the CEO or COO
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40% of companies with a turnover of less than $2 billion do not have a digital strategy, according to a survey. About 25% of the respondents had digital strategy without governance, while 30% had a digital strategy with governance, noted the survey jointly conducted by SP Jain School of Global Management and Accenture Strategy on digital supply chain.
However, large organizations with more than $10 billion turnover had a digital strategy in place. In addition, it was found that the organizations performed better when the digital supply chain strategy was owned by Chief Executive Officer or Chief Operating Officer compared to the cases when the ownership of strategy was with Chief Procurement Officer or Chief Information Officer.
The survey was conducted to gauge the maturity of supply chain functions across India, the Middle East and Asia Pacific region. The survey received more than 250 responses from the leading multi-nationals and regional organizations representing consumer goods, energy, logistics services, e-commerce, finance and other sectors.
The survey's release was accompanied by several management gurus sharing their insights on digitisation in Southeast Asia and India at the 2nd Annual Supply Chain Management Conclave of SP Jain Global in Mumbai with a focused agenda on “Measuring Digital Supply Chain Maturity”.
Speaking at the event in Mumbai as a key note speaker, Mr. Naval Sabharwal, Global Head- Supply Chain and Logistics RAMCO systems said “There are far-reaching changes in digitalization in the supply chain sector. Amazon for instance has changed the game of digitization and Tesla, who is now ruling the space in the auto industry”. He added that “The world is becoming increasingly ‘Textless’, and by 2020, 30% of the transactions will be ‘voice’."
Almost all international organisations have set up technology labs in India. “It is a case of innovative solutions being developed in India, while the users are elsewhere in the world,” Dr Rajiv Aserkar, head of global MBA and professor of logistics and supply chain management at SP Jain School of Global Management, said.
"These backyard-based labs, serving the world's leading business houses, will offer the Indians cost-effective innovations and solutions, on the next-door delivery basis. Indian corporations need the support of a robust infrastructure -- airports, railway network, and roads -- to adopt Artificial Intelligence (AI), Blockchain and Internet of Things (IoT),” he emphasized.
Global supply chains are poised for a major transformation in the wake of Industry 4.0, which represents current industrial transformation with automation, data exchanges, cloud, cyber-physical systems, robots, big data, AI, 3D Printing, IoT, and semi-autonomous industrial techniques to achieve smart industry goals
Technology is changing at a fast pace and the organizations must refresh their digital strategy frequently to keep up with the rapid changes. This was proved, when this survey found that the organisations who refreshed their digital strategy quarterly or half-yearly performed better, compared to those who did the same on yearly basis.
India's “demographic dividend” is not just about a higher number of workers but about a massive pool of highly skilled, capable and educated workforce entering the active workforce, This will be the critical driver supporting the global digital industry and will serve India Inc very well in times to come, according to Kumud Jha, a senior executive at Accenture Strategy.
Indian corporations are slower in adopting digitisation due to lack of infrastructure despite the fact that most of the technological innovations and solutions are being developed in the country, experts said.