Capgemini has launched the findings of its supply chain digitization report, which identifies the UK as leader in regards to implementation, despite the damaging lack of strategic focus felt globally amongst organisations.
Key findings from the report by the Capgemini Research Institute reveal:
- Organisations are struggling to move their digital supply chain projects beyond the testing stage: While exactly half of the organizations surveyed consider supply chain digitization to be one of their top three corporate priorities, most are still struggling to get projects beyond the testing stage (86%);
- Most organizations have spread their investments too thinly and are struggling to scale pilot initiatives: The organizations surveyed have an average of 29 digital supply chain projects at the ideation, proof-of-concept or pilot stage. Just 14% have succeeded in scaling even one of their initiatives to multi-site or full-scale deployment. However, for those that have achieved scale, 94% report that these efforts have led directly to an uplift in revenue;
- Supply chain projects that lack strategic focus are less likely to be successful: The evidence from those who have moved to implementation suggests that companies are taking on too much, and not focusing enough on strategic priorities. The organizations who successfully scaled initiatives had an average of 6 projects at proof-of-concept stage while those who failed to scale averaged 11 projects.
“Our research shows that the UK is starting to realise the value in investing in supply chain digitization, with 58% of our UK respondents identifying this as one of their top three organisational priorities. It is positive to see momentum building in the UK as its understanding of the business values of these type of digital initiatives grows as traditionally, the region has tended to be more risk-averse than its global counterparts when implementing digital initiatives,” said Simon Mardle, Retail Supply Chain Principal at Capgemini.
“However, in order to convert these significant supply chain opportunities into reality, UK organisations must ensure that their digital projects are bound by strategic focus rather than implementation for implementations sake,” he concluded.