Digital Supply Chain Management Agenda for the Automotive Supplier Industry
New digital technologies are on their way to disrupt nearly all areas of what we call ‘traditional business processes’. Supply chain management (SCM) as a key business priority of almost every manufacturing company finds itself in the center of this upcom
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Abstract New digital technologies are on their way to disrupt nearly all areas of what we call ‘traditional business processes’. Supply chain management (SCM) as a key business priority of almost every manufacturing company finds itself in the center of this upcoming digital era, where almost everything will be connected to almost everything via the internet. As the world gets connected, in the same way it also gets smarter—thanks to sensors, robotics, 3D printing and artificial intelligence. But how are supply chain executives coping with those new opportunities coming with new technologies? A recent survey identifies, that they are not equipped properly to design a digital strategy for their supply chains, necessarily transforming them into demand-sensitive networks. This chapter will provide a proper recipe for automotive supply chain managers on how to bring new technological innovations on a cohesive agenda. 17 digital SCM use cases, being identified within expert interviews, form the basis for the creation of the digital supply chain management agenda. The use cases will be assessed in terms of value and applicability and therefore be positioned into a value-maturity-portfolio, before being translated into the digital agenda.
1 Introduction Corporate businesses of all industries, and their supply chains, are witnessing an unmatched era of true business innovation. Breakthrough technologies have matured and hit scale together, enabling five defining trends, namely: hyper connectivity, supercomputing, cloud computing, smarter world, and cyber security (see chapter: The Business Consequences of a Digitally Transformed Economy). A recent survey of leading manufacturers from different industry sectors revealed that, despite significant focus on innovation as an important strategic pillar, most global supply chains are still not equipped to cope with the aforementioned changes in their business (Farahani et al. 2015a, b). In the new business era,
P. Farahani • C. Meier (*) • J. Wilke SAP Business Transformation Services (BTS)—Supply Chain Management Practice, SAP Deutschland SE & Co. KG, Walldorf, Germany e-mail: [email protected]; [email protected]; [email protected] © Springer International Publishing Switzerland 2017 G. Oswald, M. Kleinemeier (eds.), Shaping the Digital Enterprise, DOI 10.1007/978-3-319-40967-2_8
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speed is crucial, since product lifecycles are becoming shorter and more fluid. Customers demand quicker development and delivery of new products and services, which translates into the need for improved response times, changing organizational structures, and changing business processes for companies. A key part of this transition includes the transformation of traditional supply chains into demandsensitive networks (Economist 2014). New technologies allow companies to get a better understanding of customer preferences, and they help companies improve their relationships with their customers. To get to a leading position—or to maintain their existing position—su
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