While COVID-19 exposed a lack a supply chain resiliency for many large corporations, resiliency adjustment strategies, which may or may not include re-shoring and nearshoring actions, will be accelerated by digitization. Not only will large corporations’ benefit through being more resilient, suppliers should expect large corporations’ resiliency to be accelerated through digitization, the benefits of which are just too powerful to ignore. According to the US Smart Manufacturing Leadership Coalition (SMLC), the expected benefits of digitization entail:

  • 10%-40% reduction of maintenance cost
  • 2%-5% increase in productivity
  • 30%-50% reduction of total machine downtime
  • 45%-55% increase of productivity in technical professions through automation of knowledge work
  • 20% -50% decrease in cost for inventory holding
  • 10%-20% reduction in the cost of quality
  • 85%+ increase in forecasting accuracy

Manufacturing suppliers expecting to become and attain competitiveness in Digital Supply Networks must have a digitization strategy and enablement. But, the best way to understand digitization is in practical terms:

Today’s dominant Supply Chain Networks (SCNs) are characterized by the end-to-end supply chain processes of:

  • Plan
  • Source
  • Delivery
  • Return
  • Enable

Within which:

  • Processes are usually not connected to each other in real time
  • Information is usually not available and transparent across process areas
  • Data silos usually exist between customers and suppliers as trading partners

While driven by supply chain strategy, emerging Digital Supply Networks (DSNs) entail the six functional pillars of:

  • Digital Development
  • Synchronized Planning
  • Intelligent Supply
  • Smart Factory
  • Dynamic Fulfilment
  • Connected Customer

Within which:

  • Processes are connected to each other in real time
  • Information is always available and transparent across process areas
  • Data silos do not exist between suppliers and customers as trading partners

Digitization is not a walk in the park but a journey that requires a well thought out strategy; and, as a first step, the development of a digitization culture data and performance driven culture inherent in the DMSCA Corporate Mentoring Program (CMP) supplier development program.

The message to diverse small and mid-size manufacturing suppliers is “get dressed for company” by learning more about the “Phase 1” DMSCA Corporate Mentoring Program (CMP) and the “Phase 2” DMSCA Manufacturing Supplier Development Foundation’s emerging “Diverse Manufacturing Digital Acceleration Project” by sending an email to info@dmsca.us for additional information and/or request for a meeting.

 

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