Building a Resilient Supply Chain for Better Performance

1. Intelligent visibility
Building a resilient
supply chain
for better performance

2. Supply chains need to be more resilient
than ever before. But companies are no
longer limited to keeping more
inventory and building redundant
capacity to guard against disruptions.
There’s a better path to resiliency:
2
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3. is the combination of structural
and dynamic visibility, supported
by analytical techniques and
artificial intelligence.
Our analysis shows that companies with more
mature intelligent visibility perform better in
terms of revenue, profitability, and share price
performance.
3
Intelligent visibility
Accenture research:
We interviewed 30 leading supply chain
executives representing a cross-section of
geographies and industries to explore the
extent to which companies are using
“structural” and “dynamic” visibility and the
impact that’s having on their supply chain’s
performance.
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4. 4
The building blocks of intelligent visibility
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5. 5
Structural visibility: Dynamic visibility:
Whatdoesoursupplychainlooklike? What’shappeningacrossoursupply
chainright now?
Provides a snapshot of a company’s
operations at a point in time or over a certain
period and helps uncover hidden issues. It
helps companies understand such things as:
Enables a company to monitor and respond
to events in real time. It’s a progression of
increasingly mature capabilities that help
companies see:
Where their suppliers are
Where their points of manufacturing are
What logistics routes they use, including those
of their partners
Interrelationships across the broader supply chain
network
Potential supply chain risks and weaknesses
Where products are across the
supply chain
How plants and warehouses are running
When and where disruptions are occurring
What disruptions are affecting, and how
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6. 6
regularly perform
classic risk
management
regularly perform
network
mapping
perform network
simulation/
optimization/
modeling
I think we can at least reach a
rough 85% to 90% of
[structural] visibility, but only
covering tier one suppliers.”
An advanced level of
structural maturity is
common
Most companies employ regular network
mapping, classic risk management, and
network.
But structural visibility isn’t necessarily available for
the entire supply base.
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7. 7
Dynamic visibility is less
common, especially the
higher-level stages
Most companies are strong in the first two
stages of dynamic visibility: monitoring
and using data predictively.
Far fewer employ the third stage of prescribing actions. And
the final stage of autonomous execution has yet to be tapped.
monitor
(collect and
observe data)
Use data
predictively
use data
prescriptively
In very random cases we use
robotic process automation…
to send some email to some
people. But that is just a starter,
not fully automated.”
use autonomous
execution
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8. 8
Four key takeaways
Our research analysis reveals four key takeaways for
companies looking to use visibility to drive greater supply
chain resiliency:
When it comes
to resiliency, visibility
delivers.
Good enough is,
usually, good
enough.
Structural
visibility is a
requirement.
More advanced
dynamic visibility
should be the target.
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9. 9
When it comes
to resiliency,
visibility delivers
Our analysis shows that
companies with greater
visibility are better
positioned to weather all
kinds of disruptions.
01
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10. 10
Good enough
is, usually, good
enough
Full visibility across the
supply chain isn’t
necessary, or economically
feasible. Focus on the
really important areas of
the business.
02
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11. 11
Structural visibility
is a requirement
Every company should, with the
help
of digital twins, have the
basics such as network mapping,
risk management, network
assessments, and modeling in
place.
03
Leverage advanced analytics to go to the
next level—especially around end-to-end
visibility and simulation.
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12. 12
More advanced
dynamic visibility
should be the target
Predictive visibility and
autonomous execution,
achieved with a sophisticated
control tower, are the keys
to maximizing resiliency.
04
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13. Supply chain executives know how critical visibility
is to resilience and will continue to build the
capabilities they need to make their operations as
transparent as possible.That transparency speeds
informed decision-making so companies are
prepared for disruption—and provides the visibility
that delivers operational and financial performance
investors, customers, and the bottom line will
appreciate.
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It’s time to build
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14. Authors
Stéphane Crosnier
Managing Director
Strategy & Consulting
Supply Chain & Operations
Resilience Global Lead
UK and Ireland Lead
Maria Rey-Marston, PhD
Managing Director
Strategy & Consulting
Supply Chain & Operations
Innovation Global Lead
Researchers
Stephen Meyer
Senior Principal
Strategy & Consulting
Supply Chain & Operations
Research Lead
Contributors
Keith Walker
Managing Director
Strategy & Consulting
Supply Chain & Operations
North America Resilience Lead
Deepak Tantry
Research Associate Manager
Strategy & Consulting
Supply Chain & Operations
Suresh Veeraraghavan
Managing Director
Strategy & Consulting
Supply Chain & Operations West
Lead
To learn more, read the research POV.
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15. About Accenture
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