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Moving to an Autonomous Supply Chain

Market Analysis

by John Willmott

published on Jan 22, 2021

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Report Overview:

NelsonHall's "Moving to an Autonomous Supply Chain" whitepaper is designed to assist supply chain leaders in major manufacturing and CPG enterprises in understanding and benchmarking their supply chain issues and approaches to supply chain transformation.

NelsonHall carried out this whitepaper on behalf of Capgemini’s Digital Supply Chain Practice in conjunction with Joerg Junghanna, Vice President Europe – Digital Supply Chain, Capgemini Business Services.

Who is this Report for:

NelsonHall's "Moving to an Autonomous Supply Chain" whitepaper is designed to assist supply chain leaders in major manufacturing and CPG enterprises in understanding and benchmarking their supply chain issues and approaches to supply chain transformation.

NelsonHall carried out this whitepaper on behalf of Capgemini’s Digital Supply Chain Practice in conjunction with Joerg Junghanna, Vice President Europe – Digital Supply Chain, Capgemini Business Services.

Scope of this Report:

The study is based on interviews with 50 supply chain leaders in major enterprises across North America, U.K., and Europe and identifies:

  • The key challenges faced by supply chain organizations
  • The suitability of current supply chain processes
  • The key benefits sought from and the characteristics of autonomous supply chains
  • The pattern of autonomous supply chain initiatives planned
  • The key technologies within a reimagined autonomous supply chain capability
  • The extent of vendor involvement and the key selection criteria in choosing a services partner to assist in autonomous supply chain adoption
  • The challenges and key success factors in supply chain transformation.

Key Findings & Highlights:

Supply chains have been under pressure for some time as customer expectations have increased, and the current combination of the pandemic and its aftereffects and the recent trade wars has compounded any frailties in current supply chains.

In particular, supply chain executives need to develop more resilient and agile supply chains that can meet rising customer expectations within a more volatile and complex global trade environment while relieving their operational cost pressures.

Current supply chain processes often lack the flexibility and scalability to adjust to global trade volatility and capacity constraints. These issues are frequently compounded by a high dependence on fragmented legacy systems that are highly dependent on manual processes to achieve an element of end-to-end integration.

The majority of supply chain executives perceive a significant need to improve their supply chain information flow with information flow improvements frequently needed across demand information, supplier information, and logistics information.

Supply chain executives in major enterprises view the introduction of an autonomous supply chain as a means of eliminating many of the day-to-day transactional issues that currently take up much of their time, enabling them to devote an increased proportion of their time to longer-term and more strategic activity.

The key characteristics sought in an autonomous supply chain are improved standardization and integration of the supply chain and enhanced supply chain visibility and forecasting.

Roughly a third of enterprises plan to undertake significant autonomous supply chain initiatives over the next two years. These initiatives can be broadly grouped into three areas: planning & forecasting, supply chain optimization, and supply chain execution.

Enterprises typically need assistance in implementing supply chain transformation, and eighty-four percent of enterprises will involve vendors in co-creation when implementing autonomous supply chain initiatives.

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