Digital tools help overcome Information Paucity How can Digital Technologies Drive Operational Excellence in Manufacturing Industries >30% of banking, insurance and telecom companies are digirati. The manufacturing industy is a ‘beginner’ in digital maturity. Over 90% of suppliers incur anywhere between 0-7% of their sales as additional costs due to forecast deviations 3 . In a Swiss manufacturing company, reliable planning reduced the additional transport required because of late deliveries, due to order Companies can achieve savings Manufacturing Companies Do Not Fully Leverage Technology Flow of Digital Data Simplifies Supply Chain Management Field Service Becomes more effective using Digital Tools Research indicates that while manufacturing companies have invested in technologies, they have largely done this in silos. Only 38% of manufacturing industry executives indicated that digital initiatives in their company were coordinated across functions or regions. Over 40% of supply chain executives believed that improving supply chain visibility can result in the organization gaining a competitive advantage 2 . 58% of organizations treated the service function as a profit center with clear profit and loss objectives in place 5 . 65% of incoming service requests require a field visit or a dispatch 6 . • point of sales connection and immediate customer order reactivity • lack of inventory visibility during inbound transit, production and outbound transfer • absence of integrated supply chain The 3 major connectivity gaps in Supply Chain Management: Integrated Business planning drives transparency Similarly, 54% of organizations see service as a means to rise above competitive pressures from other manufacturing or service organizations 5 . Kinetico cut its service resolution time into half, post the deployment of a cloud-based service management 7 . Digital technologies provide multifunctional tools for field technicians. 03 Digital tools enable effective scheduling of field force. Digital tools drive overall productivity of service operations. 01 02 Assess Maturity Define Vision & Mission Prioritize Define Digital Process & Architecture Fix Basics and Lay Foundation Implement 01 02 03 04 05 06 Reach out: Interested in reading the full report? Visit http://www.capgemini-consulting.com/operational-excellence-through-digital-in-manufacturing-industries Follow us on Twitter @capgeminiconsul or email [email protected] Sources: Create reliable order confirmation statuses Form a feasible production order plan eliminating human intervention Digital Technologies Enhance Visibility >70% of manufacturers still use traditional methods of planning 1 01 02 03 04 Prevent unreasonable delivery dates Take existing capacity into account Integration of planning and execution tools enable organizations to of Manufacturing Operations Digital Manufacturing Processes 1 The Association for Operations Management, “Material Requirements Planning in a Demand-Driven World”, October 2011 Capgemini Consulting analysis 2 Capgemini Consulting, “The 2013 Supply Chain Agenda”, 2012 3 VDA Study, 2008 4 Capgemini Consulting client 5 Aberdeen Group, “State of Service Management: Outlook for 2013”, January 2013 6 Aberdeen Group, “Field Service 2012”, February 2012 7 ServiceMAX case study How can organizations achieve operational excellence through Digital Transformation? Digital tools bridge connectivity gaps Order Digital technologies enable effective management of information flow Levi Strauss & Co. reduced manual tracking and tracing of inbound shipments by 98% by implementing a supply chain visibility platform. i split, by 13% 4 . of over 20% in transport costs by using end-to-end planning systems and processes 4 . can increase the quality of service by 30% Integrated Digital Supply Chain decreases inventory costs by 20% Digital Service Function decreases labor call handling costs by 40% Banking Insurance Utilities Pharmaceuticals Retail High Technology Transformation Management Intensity Digital Intensity Fashionistas Digirati Beginners Conservatives Packaged Goods Consumer Manufacturing Telecom Travel and Hospitality Digital intensity measures how advanced digital initiatives are within an organization. Transformation management intensity measures senior executives’ capability to drive change throughout the organization. Only12% of manufacturing companies are digirati, companies that fully leverage digital technology.