Augmented resilience, performance, and sustainability

will allow organizations to take a customer-centric focus

#GetTheFutureYouWant
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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

The supply chain is no longer an swan events – such as the COVID-19

Introduction
afterthought in business meetings. pandemic, the war in Ukraine, the recent
Supply-chain leaders are now significant blockage of the Suez Canal, and rising
figures in their respective industries energy shortages – which are becoming
and are at the heart of ongoing more frequent and severe, impacting both
transformation efforts. top and bottom lines. Imperatives arising
from consumer preferences and a societal
Traditionally, supply-chain trade-offs
push for localization are also exacerbating
have been driven by two recognized but
these issues.
nevertheless fast-evolving forces: a more
connected, personalized, and real-time Over half (54%) of organizations
customer experience; and a global value acknowledge that their supply chains have
chain that continuously optimizes the altered significantly in the past two years.
manufacturing and production costs of However, while 51% of organizations
goods and services. have already deployed an omnichannel
Resilience and sustainability are topics

54 %
that must also be considered carefully in
any modern business plan. Sustainability
is a priority for all stakeholders, who
are putting pressure on organizations
to reduce CO₂ emissions and improve of companies acknowledge that their
labor practices all along the supply chain. supply chain has changed significantly
Resilience is essential for organizations in the last two years.
to overcome the external, global black

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

strategy, only 27% are implementing end- In August 2022, we conducted an online
to-end supply-chain transformation that survey of 1,000 organizations across the
Introduction
will integrate front and back offices. consumer products, retail, manufacturing,
and life sciences sectors. We also
Our research found that 45% of
conducted in-depth interviews with
companies absorb a significant portion
organizational leaders. In this research, we
of the cost increase due to resilience,
aim to answer the following key questions:
sustainability, and customer-centricity
efforts, while remaining unaware of their • What is the new supply-chain paradigm?
true end-to-end baseline. Also, 35% find • Are organizations equipped to become
it difficult to balance objectives that may part of an intelligent supply chain?
be ideologically complementary but often • Is the move to an intelligent
compete for resource, particularly in a supply chain a holistic and
period of high inflation. In this context, stepwise transformation?
while supply chains have changed a • What can be learned from the best-in-
lot under the pressure of events, the class intelligent supply chains?
foundations from which to move forward • How can organizations overcome
are not yet in place. Organizations have key challenges on the road
an opportunity to build intelligent supply to transformation?
chains that are more efficient, resilient,
and sustainable, allowing for a focused
customer-centricity.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

One of the cumulative effects of the • The smart and sustainable products to Customer experience : Online
crises of the past three years has been be launched in the next few years will purchasing, faster order fulfilment,
to redefine supply-chain priorities. progressively reshape the whole value hyper-personalization
Operational efficiency/cost reduction, chain, from sourcing through design,
Globalization and resilience : Secured
resilience, and agility to support new production, and recycling, transforming
Executive

market access (suppliers and customers),

business models are the top three the customer experience in parallel.
Summary
relocation, product platforming
priorities, followed (at some distance) by • Greater resilience and sustainability
(hardware and software)
customer experience and sustainability. will also drastically enhance brand
reputation with all stakeholders, Sustainability : CO₂ reduction,
While this seems like a significant burden
facilitating access to different sources sustainable design /sourcing,
on organizations, in practice and to put
of funding; improving working supplier diversity
things in perspective, all these priorities
conditions; such qualities will give
interact with and complement each other;
ethical credibility and a sense of
moreover, progress in this direction will
purpose to organizations – significant
see several benefits down the line:
weapons in the ongoing war for talent.
• Getting supply chains in shape now
will optimize resource consumption The main market trends to be addressed
– particularly important in a period consistently are the following ones:
of high inflation – as well as enhance
resilience, while significantly improving
both sustainability and the customer
experience.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Fewer than 20% of organizations currently Over the next three years, organizations
consider themselves to be equipped to plan to increase their supply-chain
handle those different challenges with transformation investments by 17%
consistent success. on average, and expect to double their

20
business outcomes in terms of growth,
%
Executive

Industrial organizations are fully aware

profitability, and sustainability.
Summary
that moving toward a digital intelligent
supply-chain model will require an holistic A small group of companies – about
and stepwise transformation from 10% of the sample – have already laid
supply-chain design and systemic-risk the foundations, consolidated their of organizations consider they are
management, through forecasting and investments, and begun to realize at least equipped in handling supply chain
planning to execution and control as well 20% higher benefits. Organizations could challenges consistently.
as governance. learn from the best practices of these
front-runners.
Achieving this will entail constructing
composable IS/IT architecture that
combines a transactional backbone;
best-of-breed solutions by industry; and
data-sharing and collaborative platforms
to break siloes and provide end-to-end
visibility and traceability. In addition to
technology, governance, capabilities,
extended ecosystems, and collaboration
will be key to progress, as well as a viable
economic model.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

ORGANIZATIONS ARE
STRUGGLING TO EMBRACE THE
NEW SUPPLY-CHAIN PARADIGM

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

The crises of the last three Fig.1

years have produced a new Efficiency and continuous cost optimization, resilience, and agility are the highest
supply-chain priorities among organizations
paradigm and set of priorities
for the supply chain
Supply-chain trade-offs are no longer Highest ranked supply-chain priorities among organizations
driven purely by the traditional forces
of customer experience and the global
value chain. Organizations must now
consider two new forces: resilience Efficiency and continuous cost optimization 58%
and sustainability. In our survey, 45% of
organizations state that their supply-
chain cost base has increased over the
Resilience 53%
past three years to accommodate the
push to improve resilience, sustainability,
and customer-centricity. However, these
businesses do not feel in control of their Agility to support new business models 49%
end-to-end baselines.

Sustainability 26%

Customer experience 22%

Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022,
and Supply Chain Survey, August–September 2020; N=1,000 organizations for each.
Note: Survey respondents were asked to rank the top five priorities of their organization’s supply chain, from 11 options.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

CONSUMER PRODUCTS RETAIL

• The top two supply chain priorities of the consumer products organizations are • The top two priorities of the retailers are localization/regionalization (which includes
efficiency and cost optimization and agility to support new business models. the agility to adapt to severe disruption resulting from events such as, geopolitical
• Unilever’s eCommerce sales in India saw double-digit growth in 2021. Through crises) and resilience (including diversification, contingency planning, etc.).
direct-to-consumer platforms, Unilever is expanding its digital footprint. In 2021, • Walmart has introduced automation to its existing facilities, improving the efficiency
Lakme, the most-followed Indian beauty brand on Instagram, earned 30% of its of transportation of products from distribution centers to outlets facilitating
revenue through digital channels. freight-handling at its regional distribution centers.

MANUFACTURING LIFE SCIENCES

• The top two priorities of the manufacturing supply chain are localization/ • The top two priorities of the life sciences supply chain are supporting new business
regionalization and resilience. models and localization/regionalization.
• Tesla has a dedicated responsible-sourcing program for three priority minerals in its • Pfizer operates one of the most sophisticated supply chains in the industry, with
battery supply chain, allowing it to engage directly with local suppliers, rather than over 40 owned sites and 200 suppliers globally, providing capacity as required. It
relying on midstream companies. In addition, Tesla builds its own cells in its successfully manufactured more than 3 billion doses of the Pfizer/BioNTech
“gigafactories” and recently launched its 4680 battery in collaboration with Panasonic. Covid-19 vaccine in 2021 and expects to manufacture 4 billion doses in 2022.

Source: Unilever Annual Report 2021; Walmart Group, “Chain Reaction: We’re Partnering with Symbotic to Bring High-Tech Automation to Our Supply Chain,”
July 2021; Tesla Group, Impact report 2021; Pfizer Group, “Expanding COVID-19 Manufacturing Efforts to Increase Global Vaccine Access,” 2021.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Thirty-five percent of organizations Fig.2

find balancing these (often conflicting)
Customer experience trends across regions, and by industry.
objectives difficult and only one in six
considers itself well-equipped to handle this
new paradigm in practice. Below, we unpack
the trends making an impact on supply Customer experience trends
chains and make our own assessment of
how well-equipped organizations are to
manage them. 90%
Growth in frequency of online ordering
16%
Five in six organizations All Industries 74%
Faster order fulfilment time
feel ill-equipped to 11%
accommodate the new 63%
Personalized products and services
supply-chain paradigm 9%
76%
Organizations are poorly prepared Move from products to services
13%
to offer a more connected, B2B
hyper-personalized real-time Customer collaboration (Product development, 73%
forecasting, and planning) 11%
customer experience
74%
Overall, 90 percent of organizations say Enriched customer experience
13%
growth in the volume of online purchases
B2C/B2B2C 71%
will impact them, but only 16 percent are
Hyper-personalization
well equipped to handle this (see Figure 9%
2). Two related factors – shorter order-
fulfillment times and more personalized High business impact Ability to address
products and services – are also impacting
the supply chain. Seventy-four percent of
organizations agree that shortening order Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.
fulfillment times will impact them but only

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

11 percent are well equipped connected products and remote Fig.3

to do so. At the same time, 63 services; use of digital apps
and handheld devices to collect Organizations are not equipped to address globalization trends
percent of organizations agree
that personalized products and usage data.
services will impact them but Globalization trends – impact and preparedness
only 9 percent are well equipped Globalization and resilience:
to handle this. Distributed supply chain
92%
is the next frontier Relocation of global trade
Additional trends that business- 15%
to-business (B2B) organizations Over the past three years, the 67%
All Industries Connected and secure supply chain
cited as likely to impact them but COVID-19 crisis has drastically 9%
for which they are not prepared exacerbated supply-chain
Under-capacity situations or de-risking 69%
include: fragility: three-quarters of of mono-sourcing 11%
organizations globally have been
• The pivot from products to impacted by the closing down 77%
Data-driven supply chain
services (76 percent versus 13 of facilities, supply disruptions, 10%
percent) employee absences, and the 75%
• Collaboration with customers imperative for remote work, B2B Collaboration across all tiers
16%
to improve product while less than 20 percent are 73%
development, forecasting, well equipped to handle these End-to-end systemic-risk management
17%
and planning (73 percent changes. As many as 92 percent
versus 11 percent) Supply chain for mass product 73%
of organizations say the ongoing
• Supply chain for mass product personalization 12%
relocation of the global B2C/B2B2C
personalization (73% versus supply chain will impact them, Direct online and convenience 71%
12%) but only 15 percent are well storage points 12%
equipped to handle it (see Figure
New digital services will drive 3). Apart from under-capacity High business impact Ability to address
servitization and value creation, and mono-sourcing, de-risking
while impacting the supply is also an issue that 69 percent Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.
chain in the following areas: of organizations said will impact
development of digital apps them but for which only 11
to monitor personal goals; percent are prepared.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Organizations are shifting

their supply chains to
use more local suppliers
and manufacturers.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Fig.4 Organizations are pivoting their supply

chains towards more local regional and
25% of global trade will relocate in the next three years
suppliers and manufacturers: between
2022 and 2025 the share of regional or
local suppliers is set to increase from 43
Geographical distribution of Geographical distribution of percent to 57 percent and manufacturers
supplier base manufacturing base
from 43 percent to 56 percent. Houssam
57% 57% Hage, Senior VP of Supply Chain, Stellantis,
57% 56% adds: “Strategic sourcing may be considered
as local, to ensure there is no dependence on
any war-constrained countries or vulnerability
43% 43% 44% 43% to supply-chain disruptions, such as the recent
blockage of the Suez Canal.”

Global Regional or Local Global Regional or Local

Current In three years' time Current In three years' time

Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

90 %

of organizations say growth in the

volume of online purchase will
impact them

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Resilience: A multi- time, sustainability will reshape Fig.5

dimensional and entire business models, from
Organizations are poorly equipped to handle the impact of
long-term investment design though operations
to product manufacturing resilience on the global supply chain
Resilience will impact operating and service delivery. This
models and improve proximity, will require significant effort
reducing carbon footprints and investment. Resilience trends – impact and preparedness
and non-cost competitiveness
metrics such as quality levels Ninety-five percent of
organizations say the push to Secure customer and supplier 94%
and delays. market access
reduce CO₂ emissions across 11%
Overall, 94% of organizations all tiers of the supply chain will Balance just-in-case resilience with 64%
say securing market access to All Industries
impact them, but only 13% are just-in-time efficiency 6%
withstand more frequent or well equipped to accommodate
severe disruptions will impact Deploy pandemic-proof, agile planning 66%
this. The move from a linear to and execution
them but only 11% are well- a circular supply chain is also a 11%
equipped to handle this (Figure key area of impact for 68% of Develop hardware and software platforms 82%
5). While balancing ‘just-in- organizations, but only 10% are and the circular economy 9%
time’ and ‘just-in-case' supply ready to implement it. Among B2B
strategies was cited as a key area Anticipate end-market distortions 73%
B2B organizations, critical areas
of impact, only 6% are well- 14%
of impact include sustainable
equipped to do so. product development and Anticipate ecosystem members moving up and 75%
end-to-end transparency down the value chain 10%
Transition to a sustainable B2C/B2B2C
and visibility; however, very Enable interoperability between 69%
supply chain is not
few can manage this. Two stock locations 11%
obstacle-free other significantly affected
Organizations are implementing areas are sustainable product
development (77% affected High business impact Ability to address
multiple sustainability initiatives,
including carbon-footprint versus 18% prepared) and end-
mapping and reduction, of-life product management Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.
sustainable design, and (72% versus 13%).
sustainability metrics. Over

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Fig.6
The transition to sustainable supply chain will be a long journey
“Strategic sourcing should
be local to ensure there
Sustainability trends – impact and preparedness is no dependence on any
war-constrained country or
CO2 reduction across all supply-chain tiers
13%
95% vulnerability to supply-chain
Supplier diversity 73%
disruptions, such as the recent
10% blockage of the
All Industries
Circular supply chains 68% Suez Canal”
10%

End-to-end transparency and visibility 68%

8% Houssam Hage
Senior VP of Supply Chain,
Sustainable products development 77%
18% Stellantis
B2B End-of-life Product Management 72%
13%
Eco-sourcing 73%
13%
B2C/B2B2C Returns and management of 70%
second life of product 10%

High business impact Ability to address

Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Fig.7

MAKING SUPPLY CHAINS THE More organizations are optimizing social sustainability costs in
2022 than in 2020

FOCUS OF GREEN INITIATIVES

% of organizations optimizing the following costs
Organizations are committing to greater is driven by the organizational goal of 56%
sustainability of products and services as a carbon neutrality.2 However, much of the
central strategic imperative. However, such supply chain’s carbon footprint is generated
ambitions cannot be achieved without a under scopes 2 and 3, especially within
44% 44%
strong focus on supply-chain sustainability, as manufacturing organizations. Moreover,
supply chains account for over 90 percent of most organizations lack reliable scope-3
37%
organizations’ GHG emissions. emissions data.
Historically, organizations have placed Most scope-3 emissions arise from activities
greatest emphasis (38 percent) on scope-1 related to customers and the supply chain.
emissions, which are from sources that the Working with a wide range of suppliers and
organization owns or controls directly. Less contractors makes it difficult to identify the
attention (22 percent) is given to scope-2 discrete impact of the carbon footprint of
emissions (which are indirect, such as those each of these, but this task can be made
created in generating electricity used by easier through collaboration between
the organization) and scope-3 emissions (27 supply-chain members.
percent). Emphasis on scope-1 emissions
Social sustainability ( labor conditions, health Carbon footprint
and safety of workers )

2020 2022

Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022, and Supply
Chain Survey, August–September 2020, N=1,000 organizations each.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Only one in four organizations Fig.8

is scaling sustainability Fewer than one in four organizations is deploying sustainability
supply-chain initiatives use cases at scale

In our research, we found that organizations

are learning to optimize sustainability- Sustainability use cases in supply chain
related costs in their cost structure. While (% of organizations deploying at multiple sites)
56 percent of organizations were able to Identify emerging sustainability trends

Strategy
(such as product circularity, micro-plastics, 22%
optimize costs on social sustainability in divestment of carbon-intensive assets, etc.)
2022 compared to 37% in 2020, this figure
has remained the same, at 44 percent, for Measure sustainability credentials of products/services 17%
carbon footprints. Mechanism to measure impact of technology
25%
adoption (green AI)

Design
One in four organizations has started scaling
sustainability initiatives in their supply Sustainable design (green product/process) 19%
chains, most commonly in procurement and
Measure carbon footprint from purchased

Procurement &
logistics. However, the most implemented goods/services, as well as end-customer 24%

Logistics
use case of measuring the carbon footprint usage/disposal
of purchased goods/services as well as Closely collaborate with suppliers to improve their 21%
sustainability ratings
customer usage is at only 24 percent.
Robust supply chain for returns
Similarly, only 18 percent of organizations 18%
(including scarce materials)

Returns
have implemented a robust supply chain Embed sustainability metrics and action plan (such as
for returns, and just 15 percent have returnable packaging, reverse supply chain for return 15%
embedded sustainability metrics and action of EV battery components, etc.)
plans for returnable packaging and reverse
supply chains.
Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022, and Supply Chain
Survey, August–September 2020, N=1,000 organizations each.1. CDP. Transparency to transformation: A chain reaction.
2020 Global Supply Chain Report, February 2021. 2. Capgemini Research Institute, Sustainability in Manufacturing
Operations, Business executives survey, February–March 2021, N=480 businesses.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

In the past two years, organizations In the past two days, owing to volatility
have focused on survival, in labor and commodity markets, cost-
neglecting cost reduction optimization has come under pressure. The
number of organizations optimizing raw-
Supply-chain complexity has increased material costs has declined drastically in this
in recent years. An end-to-end supply time, from 61 percent in 2020 to 38 percent
chain can involve thousands of suppliers, in 2022. Transportation and labor costs
while customers demand more tailored, have spiraled out of control. A new focus
sustainable products and more efficient on social sustainability is evident, as more
order fulfillment. Disruptions of the kind organizations (56 percent) are optimizing
the business world has seen in recent times these costs compared with those in 2020
can affect the most robust systems. (37 percent).
Furthermore, we found that, while failing to
get to grips with their end-to-end baselines,
45 percent of organizations are absorbing a
significant portion of increased supply-chain
costs due to resilience and sustainability,

45 % with manufacturing (48 percent) suffering

most in this respect, while life sciences (35
percent) organizations fare best.

of organizations are absorbing a Supply-chain changes happen slowly

significant portion of increased Organizations understand that emerging
supply-chain costs trends and drivers could have a long-
lasting, transformative impact on supply
chains, which, for 68 percent of them, are

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Fig.9 “We have to increase the amount

Cost-optimization has fallen away in recent times of data that we provide to our
suppliers, as well as the data
our suppliers provide to us,
Share of organizations optimizing the following costs
including long-term forecasting,
production data, scheduling,
38%
Raw materials
stocktaking, etc. Currently, we
61%
have some information from
32% suppliers, but we are not aware
Transportation
57% of what is behind that supplier.
41%
We need to share the problem
Maintenance
56% and find the solution together.”
45% Federico Baiocco
Inventory
56% Head of Supply Chain, Iveco
53%
Operations (Warehouse+Production)
55%

37%
Labor
54%

2022 2020

Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022,

and Supply Chain Survey, August–September 2020, N=1,000 organizations each.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

a key priority. Yet the pace of change is Fig.10

slow due to the multiple challenges faced
Foundations of intelligent supply-chain transformation are not
by organizations. Only around half (54
yet in place
percent) stated that their supply chains
have changed significantly over the past
few years. Even fewer (27 percent) are
implementing comprehensive supply-chain % of organizations making significant changes to the below aspects of supply chain
transformation programs. Less than 40
percent of organizations have adapted their
IT infrastructures, adopted a data-driven Sustainability-driven practices/cultures 53%
culture, and established collaboration
systems for suppliers, customers, and other
Business and IT Collaboration 46%
partners (Figure 10).
Organizations have reported lower maturity End-to-end risk management 42%
in several different aspects of their supply
chains than in the previous survey, due to
shifting priorities during COVID-19. In 2020, Data governance 42%
for example, 54 percent of organizations
reported having a mature IT infrastructure End-to-end cybersecurity 41%
to support digitalization, compared with
31 percent currently. Data-sharing-culture Ecosystem empowerment and extended
39%
and data-governance maturity fell from 64 collaboration with customers,suppliers, and partners
percent and 54 percent to 41 percent and
35 percent, respectively. Some underlying Data-driven practices and culture 38%
reasons for this are greater localization and
fragmentation of supply chains; ad-hoc Transformation governance and benefits tracking 30%

Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.

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Fig.11
arrangements put in place in response to Organizations are more realistic about their supply-chain
unpredictable availability of inventories; or maturity than previously
simply a more realistic self-assessment by
organizations, recognizing vulnerabilities in
their supply chains. All of this has increased % of organizations citing high maturity in the below aspects of the supply chain
pressure for upskilling and reskilling
employees in supply-chain management.
Collaboration with external entities–suppliers, 39%
Only 43 percent of organizations claim distributors, retailers, etc.
to possess a skilled workforce to deal 44%
with the changes, compared with 55 Data governance (managing the availability, use, 35%
percent previously. integrity, and security of data) 54%
Intelligent supply chain: A holistic
IT infrastructure that supports supply-chain 31%
and stepwise transformation digitalization 54%
A successful intelligent supply-chain journey Skilled employees (digital and soft skills, including
must consistently address new business 43%
analytics, technology, tools and applications, data-driven
and technological challenges, from supply- 55%
decision making, adaptive leadership style, etc.)
chain design and systemic-risk management, 41%
A culture of cross-functional collaboration and
through forecasting and planning, to data sharing 64%
execution and control:
Intelligent network design and risk Access to and use of near-real-time data 43%
for decision-making 69%
management: Segment end markets and
channels, differentiate service offerings,
and design and set up an intelligent supply
chain network enabling the best “resilience- 2020 2022
performance-sustainability” compromise,
while monitoring systemic risks over time Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Smart forecasting and integrated business Supply chain as a service: Leverage trusted
planning: Integrate end-customer data, partners to outsource while digitizing and
sense the ecosystem, improve forecast automating supply chain processes and tasks

54 %
accuracy and constantly ensure relevant and to focus on higher levels of arbitration and
consistent planning across all tiers to better innovation
serve customers while improving company
Supply chain control tower and
performance
end-to-end performance management: of organizations reported having a
360° sourcing analysis and supplier Ensure end-to-end visibility, traceability, mature IT infrastructure to support
collaboration: Define and deploy “resilience responsiveness and transparency for end- digitalization
-performance-sustainability” metrics to select customers while deploying a consistent
suppliers and continuously fuel supplier performance management system across all
collaboration and performance improvement stakeholders
Touchless and agile order to delivery: Ensure Composable IS/IT architecture combining a
a seamless, rewarding and efficient end-to- transactional backbone/enterprise resource
end omni-channel and personalized customer planning (ERP), best-of-breed solutions by
experience, including upcycling industry (notably in relation to execution),

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Fig.12
data-sharing and collaborative platforms to Moving towards an intelligent supply chain requires a holistic,
break siloes and provide end-to-end visibility and stepwise transformation
traceability will be required. Smart forecasting
and integrated business planning are priorities
Moving towards an intelligent supply chain requires a holistic
for both original products (79%) and
and stepwise transformation
aftersales (73%).
The shift to an intelligent supply chain requires Intelligent network design and systemic 80%
a holistic, stepwise transformation across risk management 23%
multiple dimensions. Intelligent network design 76%
and systemic-risk management are essential to Smart forecasting and integrated business planning
11%
better balance the supplier network, considering
the requirement for improved resilience and 75%
Data and AI foundation to break siloes
sustainability. Only 23% of organizations 9%
currently believe they have the ability to 74%
address this. Touchless and agile execution
13%
Supply chain control tower and E2E performance 74%
management 14%
73%
Supply-chain-as-a-service
11%
73%
360° sourcing analysis and supplier collaboration
17%

High business impact Ability to address

Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Intelligent supply chain: A holistic and stepwise transformation

The path towards an intelligent supply chain entails addressing critical use-case-driven
challenges while architecting the future:

Key Topics Short-term opportunities and challenges Mid-term opportunities and challenges
12-24 months >24 months

• Micro-segmentation and service offerings differentiation of service offering • Flow simulation and dynamic network configuration
INTELLIGENT NETWORK DESIGN • Intelligent network design balancing resilience, performance, and • End-to-end risk management: mapping, prediction, mitigation
AND RISK MANAGEMENT sustainability • End-to-end critical-sustainability path assessment and optimization
• “What if?” scenarios
• Demand and ecosystem sensing • From supply chain planning to enterprise performance management
SMART FORECASTING AND • Dynamic adjustments of supply-chain parameters (security stock, …)
• Smart forecasting and inventories
INTEGRATED BUSINESS • Integrated business planning and faster S&OP • Continuous, agile, and closed loop planning
PLANNING • Profit-optimized production planning • Yield management
• Green packaging, 3D printing • Supplier collaboration: product design
360° SOURCING ANALYSIS AND • Supplier visibility and collaboration: planning, quality, delivery • Sustainability and resilience monitoring across all tiers
SUPPLIER COLLABORATION • Spend analysis • Quick onboarding of new suppliers
• 360° performance management: resilience, performance, sustainability
• E-commerce and online order tracking • Dynamic routings: picking, delivery
• Touchless order management and available to promise (ATP) • Real-time location and location-based services (track and trace, instructions …)
TOUCHLESS AND AGILE ORDER • Predictive operations: recipes, shipment, …
• Cross-company transport
TO DELIVERY • Augmented worker: AR/VR, Exoskeleton • Smart real-time resource allocation and planning/scheduling
• RPA: Good to person (G2P), existing routines automation • IPA: Flexible automation, IA-based automation
• Procurement: Sourcing and supplier qualification/assessment • Supply-chain control tower, alerting and usual event management
SUPPLY-CHAIN-AS-A-SERVICE • Planning: Inventory management, mid- and short-term planning • End-to-end resilience and sustainability regular assessment
• Execution: Order management, order to cash
• Digital war room and automatic management of usual events • E2E visibility and traceability
SUPPLY CHAIN CONTROL TOWER • Progressive end-to-end visibility of stock, materials, flows, and delivery status • Closed-loop learning/AI-based event monitoring
AND E2E PERFORMANCE • Cross-function KPIs and incentives • Dynamic pricing
MANAGEMENT • Cybersecurity • Blockchain: Traceability, smart contract, …

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

17
Only one-third of organizations panoramic images, floor plans, the least mature. Federico Baiocco,
%
have scaled intelligent supply- and scatter plots for all vehicle Head of Supply Chain at Iveco Group,
chain transformation initiatives plants. Production planning can emphasizes the importance of
integrate the virtual product into ecosystem collaboration: “We have
Two in three organizations are still a virtual factory at an early stage, to further increase the amount of data of organizations plan to increase
in the initial stages of deployment reducing planning effort and that we provide to our suppliers, as their investments in the supply
or are yet to deploy supply-chain capital expenditure, and ensuring well as the data our suppliers provide chain over the next three years
transformation initiatives. On processes are more efficient and to us, including long-term forecasting,
average, organizations have scaled stable production data, scheduling,
only 11 percent of relevant supply- • PepsiCo is working on workflow stocktaking, etc. Currently, we have
chain initiatives across multiple automation2 for managing search- some information from suppliers, but
sites. Supply-chain-as a-service (39 marketing strategies by creating we are not aware of what is behind
percent), followed by 360-degree a sales-intelligence platform. The that supplier. We need to share the
sourcing analysis and supplier platform combines retailer data problem and find the solution together.”
collaboration (36 percent) and with PepsiCo’s supply-chain data
process automation (36 percent) • Unilever improved its partner
to predict when items will go out
are the most commonly deployed experience through a new
of stock and prompt restocking to
(single and multi-site deployment) integrated supplier helpdesk,3
avert supply issues
use cases. Across sectors, the picture with a single point of contact and
is consistent with this overall trend in faster query-resolution times
terms of deployed use cases. When Around half of organizations • BMW and Brilliance Auto Group’s
comparing across regions, we see must attain greater business joint venture4 has established a
EU and UK organizations having the and technical maturity closed loop for the reuse of raw
greatest share of scaled deployments materials from the batteries used
Among business capabilities, in electric vehicles (EVs); a battery-
(38%), while the APAC region took
organizations rate sustainability tracing system enables traceability
the lowest share (30%). Some
monitoring and implementation (50 of batteries throughout their life-
organizations are implementing
percent) and e-commerce and order- cycles
multiple-process automation
management systems (46 percent)
initiatives.
as the areas in which they are most
• The BMW Group’s Mobile 3D laser mature, while they see planning
scanners1 create photorealistic and ecosystem collaboration as

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Fig.13
Looking at technical capabilities, Less than half of companies are well prepared to monitor
organizations are most mature in data and supply-chain improvements over time
artificial intelligence (AI) as well as execution
systems (43+ percent). Organizations
consider the metaverse, digital twins,
Share of organizations prepared to monitor supply chain improvements
and collaborative platforms to be the
least mature areas. Unilever has set up 49% 48% 48%
a Virtual Ocean Control Tower,5 which 46% 46%
provides real-time data related to cargo 42%
location, estimated arrival, etc., helping
the organization to minimize delays and
increase cross-border efficiency
• Johnson & Johnson has harnessed
machine learning (ML)6 and the
technologies that underlie it to create
an engine that can accurately predict
demand in real time

Reinforcing governance and

performance is mandatory to succeed Supply chain Dedicated Sustainability Sustainability Consistent KPIs Supply chain KPIs
Organizations are not well prepared to leader reports supply chain leader inputs KPIs at par and incentives aligned with
directly transformation are considered with other all along the company’s
monitor supply-chain improvements over
to the board office critical business KPIs supply chain broader objectives
time. Only 49% of organizations say their
supply-chain leader reports directly to % of preparation
the board. Just 42% of the organizations
claim that supply-chain key performance Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.
indicators (KPIs) are aligned with the
company’s broader objectives.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Only one-third of organizations

have scaled intelligent supply-
chain transformation initiatives.

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Empowering an extended Challenges around Fig.14

ecosystem is a key success economic models and
Empower an extended ecosystem: top partners
factor moving forward trajectory are sizing for operational excellence
Supply-chain excellence will The drive for sustainability can
also require an empowered, reshape the entire business
extended ecosystem if it is model of an organization, while Top partners for operational excellence
to translate into operational resilience will mainly impact its
excellence. According to operating model. In both cases, 62%
organizations, hyperscalers the degree of effort and size of
for harnessing the full power financial investments will be very
of data and cloud, contract important over time and should 51%
47%
manufacturers and insurance be proportionate to the scope
firms are the top contributors and intended business impacts.
38%
who help transform/improve
• Particularly in periods of 32%
the performance of their
high inflation, optimizing
organization’s supply chain.
the cost of operations is 22%
Insurance and finance companies mandatory to support
could mitigate supply chain sustainability and resilience
losses and implement innovative transformations. Data-driven
financing solutions, while energy operations are the main lever
and utilities companies can for boosting performance,
secure business continuity. deploying a virtual model
Hyperscalers Insurance firms Contract Business services Energy and Third-party
before undertaking physical
manufacturers companies utility providers logistics firms
development; remote work
before in-situ; in-situ but
augmented; and finally % of top 5 ranks
closed-feedback loop. It will
significantly contribute to
Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Fig.15 sustainability objectives by doing right the the most effective economic model and
first time every time while optimizing key trajectory for an industry or a company
Top transformation investments areas will be the key to future success. Such a
resources consumption.
• In addition, specific sustainable projects comprehensive approach and model will
will optimize energy mix and consumption require multi-disciplinary collaboration and
Companies will spread investment across new technologies, capabilities all along the supply chain as well as extensive investment.
and change management, and the ecosystem supplier sustainability
• At the same time, resilience improvement Organizations will increase
54% 53% will usually increase proximity, reduce supply-chain investment to
transport distance and CO₂ emissions.
boost business outcomes
Greater resilience and sustainability will On average, organizations are planning to
also drastically enhance brand reputation increase their investments in the supply chain
with all stakeholders, facilitating access to by 17 percent over the next three years.
different sources of funding and improving Currently, organizations on average invest
19% 18% working conditions. Such qualities will give 2 percent of their revenue in supply-chain
ethical credibility and a sense of purpose to transformation programs. The top areas
11% 10% 9% 9% organizations – significant weapons in the of investment include collaboration with
ongoing war the ecosystem (54%) and skills and change
for talent. management (53%).
Collaboration Digital and cloud IS/IT integration Data and AI
with ecosystem Cost and non-cost competitiveness, The top three broad areas of investment
Skills and change Automation, IoT and New operating sustainability, and resilience will impact are planning, sales and marketing, and
management robotization connectivity model each other more profoundly as operational quality. In terms of specific investment
complexity deepens as well as the customer areas, organizations plan to focus on change
experience. Each individual benefit case management and skills, collaboration with
Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.
must assess the impacts within those ecosystem players (customers, suppliers, and
different specific dimensions. Designing peers), automation and robotization.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Fig.16 Houssam Hage at Stellantis confirms

the importance of collaboration to skills
Business outcomes are projected to double over the
development: “Today, in terms of supply
next three years
chain, we are training ‘à la demande.’ So,
when I have an issue, I train up, I fix the issue,
23.3% 24.0% and I move on. We would need a global
22.0% 22.1% 21.8% plan. An intelligent supply chain is about
21.6%
collaboration with the company, with the
consultant company, or with the internal team,
17.2% 17.0% to define the training plan and implement
it in real time.” Other organizations are
implementing multiple automation
initiatives:
11.4% 11.1% 11.3% 11.3% 11.3% 11.3% 11.7%
• J&J has added capabilities7 such as
9.6% track-and-trace devices with GPS signals
and temperature monitoring to address
issues such as theft and counterfeiting
• BMW has installed an AI application8
that prevents unnecessary movement
of empty containers on conveyor belts.
It also uses image data to recognize
whether a container needs to be lashed
Ease of Reduction Release of Reduction Net promoter Growth in Market share Growth in
access to in CO2 working in operating score operating improvement revenues onto a pallet or if additional securing is
capital emissions capital costs improvement profit required for large and unstable boxes

Business benefits in 2022 Business benefits expected in 2025 As a consequence, expected business
outcomes are projected to double over
the next three years according to the
Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.
organizations we surveyed.

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THE MANY BENEFITS OF

REVISITING SUPPLY-CHAIN
ARCHITECTURE

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Fig.17
Key attributes of Supply-chain Masters
What can organizations learn
from Supply-chain Masters?
In this section, we will discover how certain Aspect Characteristics for scoring
organizations are mastering the new
supply-chain paradigm in practice and Steer and deliver a holistic and stepwise transformation, leadership commitment,
Vision and
investing in capabilities, and communicating the vision across internal and external
gaining higher benefits across dimensions leadership
ecosystems
as a result.
Efficiency and
'Supply-chain Masters' are organizations continuous cost Optimize costs and working capital all along the supply chain and balancing with
that demonstrate the ability to meet optimization priorities such as service offerings differentiation and service levels improvement
multiple demands on their supply chains.
We rated our respondents on the steps they Deploy a powerful omnichannel strategy and seamlessly integrate front and back
Customer- office while managing the end-to-end value chain, due to a customer-centric
had taken to strengthen the six key aspects centricity composable IS/IT architecture
of supply chains.
Organizations with high cumulative Consider sustainability KPIs alongside other business KPIs and collaborate closely
Sustainability with supply-chain partners to improve sustainability all along the product life cycle
implementation scores across all of
the above emerged as Supply-chain
Rebalanced geographical footprint to secure market access, customers and
Masters. Overall, 9.5 percent (95 of 1,000 Resilience and
suppliers, and deploy a just-in-time supply chain within the past three years, and
organizations) satisfied the criteria. globalization
reoriented their supplier base to ensure continuity of supply
In Figure 18, we compare the scores of
Ecosystem Empower an end-to-end and extended ecosystem to securely enrich and
Masters with those of other organizations. personalize products and services at speed. Setup close collaborative
Masters, on average, heavily outperformed empowerment
platforms with customers, suppliers, and other partners in the value chain
the other organizations in vision and
leadership, efficiency, resilience,
customer-centricity, sustainability, and
Source: Capgemini Research Institute analysis.
ecosystem empowerment.

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Fig.18 Fig.19
Supply-chain Masters maturity matrix Supply-chain Masters derive 20% greater benefits compared to
others

Masters vs others across six aspects key of supply chain Change in key supply-chain metrics following implementation of initiatives

Customer-centricity 13.8% 13.7%

13.4% 13.3%
24% 24% 21% 15% 12.8%
4.22 17%
11.1% 11.1% 11.1% 11.5%
10.9% 15%
10.9%
2.10 4.77 9.5%
3.76 Sustainability
Ecosystem empowerment 2.13 2.72

1.85 1.42

4.14 4.22
Vision and leadership 2.10 Efficiency

4.25
Resilience and globalization Net promoter Reduction in Growth in Market share Reduction in Growth in
score improvement operating costs operating profit improvement CO2 emissions revenues

Masters Others Others Supply chain Masters

Source: Capgemini Research Institute, Intelligent Supply Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.
Chain Research, August–September 2022.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

50 %

share of organizations that say

that their business teams are either
not at all equipped or only slightly
equipped to use emissions data to
drive business decisions

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Supply-chain Masters on Fig.20

average garner 20 percent Supply-chain Masters are mature in leveraging the full power of
a composable architecture
greater benefits across
key business metrics
Deployment level of technologies and execution systems
High scores are translating into strong
performance by Masters versus the rest, as
depicted in Figure 19. For example, Masters 68%
Has deployed end-to-end cybersecurity tools and methods
reported incremental revenue growth 42%
nearly 15 percent greater than that of other Uses AI, bots, and process-mining intelligence to construct 74%
'what if?' scenarios 35%
organizations. Similarly, they derive a 15
Uses a robust control-tower solution to manage 76%
percent higher market share, on average.
supply-chain performance 31%
Supply-chain Masters have invested Leverages cloud-enabled collaborative platforms to empower 62%
significantly in overhauling their technology ecosystems: customers, suppliers, third parties 41%
infrastructure. They are already mature Has access to data platforms with consistent, clean datasets 69%
in various technologies, affording them a for decision-making 29%
better understanding of market dynamics, Implements cloud-based solutions to address specific 74%
risks, and vulnerabilities, and providing the supply-chain needs or pain points 41%
flexibility to adjust quickly. 82%
Has an API and microservices-based supply-chain architecture
40%
In terms of specific technologies, Supply- Integrates specialized or industry-specific execution 48%
chain Masters focus on the following systems with ERP platform 23%
five areas: 83%
Leverages the full power of our ERP platform/software provider
32%

Supply-chain Masters Others

Source: Capgemini Research Institute, Intelligent Supply Chain Research, August–September 2022.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

• Execution systems (warehouse- a granular pricing system across its 38 behavior to yield maximum revenue), which
management, transport management, business units, providing some insulation allows teams to improve material efficiency
order management, etc.) against rising inflation and ensuring that (minimizing the amount of materials
• Cloud demand is not affected by generic used) and supplier quality, and ensure
• Cybersecurity price rises. adherence to the standards required to
• Data and AI produce consistent, repeatable products
• Blockchain “We have tools that automatically update our
and minimize waste. Lastly, it is creating
ERP systems. We identified 600,000 SKUs on
dashboards and alerts for its frontline
Supply-chain Masters identify change which we needed to take price action. And
teams and site leadership, to allow them to
management and skills development as we were able to do that across 38 businesses
take timely action on high-priority events.
top investment areas. While technology globally in about two days […] Previously, that
The initiative is expected to deliver $300
upgradation is an ongoing process, Masters would have taken us eight weeks,” states
million in manufacturing savings over the
pinpoint areas where they see maximum Sheila Jordan, Chief Digital Technology
next three years.10
potential incremental value, aligned with Officer, Honeywell International.9
overall business objectives. Conagra Brands is in the process of digitally
connecting its manufacturing operations.
Making the data work harder
The first pillar is connecting all equipment
Corporate supply chains generate huge on production lines to the internet,
amounts of internal and external data. What providing a constant cross-functional flow
differentiates Masters from the rest is how of data. The second pillar is the connected
fast and accurately they aggregate, analyze, worker, who is able to collect data on a
and act upon that data. US-based industrial- mobile device.
products manufacturer Honeywell has
The third pillar is yield management
digitized over 200,000 customer and
(understanding and influencing customer
supplier contracts, allowing it to apply

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Supply-chain Masters
reported incremental revenue growth
nearly 15 percent greater than that of
other organizations

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

AN INTELLIGENT An intelligent supply chain consists

of key factors including an optimized
customer experience, sustainability, global
Organizations will be able to enrich,
personalize, and integrate customer
journeys through the entire product life
SUPPLY CHAIN WILL connectivity, and resilience, which enable
smart forecasts, strong network design,
cycle, improving demand-forecast accuracy
and reducing order-fulfillment times.

DELIVER A integrated business planning, predictive

ability, and timely insights.
Carrefour, a French retailer, is working on
an automated system that will determine

SUSTAINABLE AND
80 percent of the stock assortment in a
Successful organizations will balance
store without human intervention, as well
adjustments to their geographical
as comparing customer buying behaviors

PROFITABLE
footprint with securing and nurturing
across stores.24
an ecosystem of partners that will
increase network resilience; deploy Organizations will be able to make

GROWTH just-in-time efficiency; set up end-to-

end risk management; and centralize
efficiencies and monitor performance
while deploying a circular supply chain
planning and decentralize execution in a and recycling rare resources, bringing
coordinated manner. end-to-end transparency and traceability
to product and material flows, and
Organizations will be able to access
implementing ongoing sustainability
ecosystems to provide end-to-end visibility
metrics. J&J’s MedTech business is
and deploy harmonized performance-
partnering with customers on a program
management and incentives. Fast-food
that allows hospitals to recycle metal
restaurant organization, Yum China
and plastic components from its single-
Holdings, rolled out an application of the
use surgical instruments, while also
Internet of Things (IoT) to its entire value
digitally capturing and communicating
chain, from suppliers to food preparation,
the environmental impact of salvaging
allowing it to track over 90 percent of
materials. The pilot program is now
inventory accurately, in real time. This helps
expanding to hospitals across Germany and
it to monitor in-store and warehouse stock
other European countries.25
levels, reducing wastage.22

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Fig.21
From traditional to intelligent supply chain: complementary challenges

CUSTOMER EXPERIENCE SUSTAINABILITY

• Micro-segment the market and differentiate • Integrate circular supply chain and recycle rare
service offerings resources
• Enrich, personalize, and integrate the • Bring end-to-end transparency and traceability
customer journey along product life cycles to product and material flows
• Sense the ecosystem and improve forecast • Fuel and leverage collaboration with suppliers
accuracy to anticipate and optimize and cross-enterprise synergies
• Reduce order-fulfillment time • Deploy continuous sustainability metrics

INTELLIGENT SUPPLY CHAIN

RESILIENCE GLOBAL SUPPLY CHAIN
• Well balance geographical footprint and secure • Connect ecosystems to provide end-to-end
an ecosystem of partners visibility
• Deploy just-in-time efficiency and just-in-case • Deploy harmonized performance
resilience management and incentives
• Set up E2E risk management and insure supply • Anticipate evolving worldwide regulations
chain losses • Ensure end-to-end cybersecurity
• Deploy pandemic-proof and integrated
planning and operations while centralizing Legend:
planning and decentralizing execution New forces | Traditional forces

Source: Capgemini Research Institute Analysis.

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HOW TO OVERCOME
OBSTACLES ON THE
ROAD TO SUPPLY-CHAIN
TRANSFORMATION

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Fig.22
Organizations will need to Guidelines to move towards an intelligent supply chain
achieve transformation to create
future-ready supply chains.
In the survey, we segregated the REASSESS THE FUTURE READINESS OF YOUR SUPPLY CHAIN TO EMBRACE
organizations into two segments: Supply- THE NEW SUPPLY CHAIN PARADIGM IN ACTION
chain Masters and the rest. We analyzed
the practices of Masters and found they • Start by analyzing the impact of emerging trends on your supply chain and assess your
differentiated themselves across multiple readiness to capture any benefits
• Recognize missed opportunities over the past few years and test areas of vulnerability
dimensions, overcoming challenges in to measure progress
planning and execution through targeted • Embrace technology and automation as part of your organization's operational culture
investments and maintaining long-term
strategic focus. Based on our analysis
BUILD CAPABILITIES AND SCALE TECHNOLOGIES AS A PART OF A
and insights from industry leaders, we
COMPOSABLE AND INTEGRATED ARCHITECTURE
recommend that organizations follow
the guidelines below to enable them to • Incorporate integrated control tower and digital twins into your supply-chain
overcome challenges in implementing management systems
an intelligent supply-chain network • Invest in skills and capability building
(Please refer to Fig.21: From traditional to • Clearly define roles and responsibilities to balance multiple demands
intelligent supply chain: complementary
challenges): BUILD A DATA-DRIVEN AND COLLABORATIVE CULTURE ACROSS BOTH
INTERNAL AND EXTERNAL ECOSYSTEMS
• Create data-driven supplier and customer relationships
• Reassess relationships across the supply chain through both resilience and
sustainability lens

Source: Capgemini Research Institute analysis.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Reassess your organizational To position themselves to cope with future Almost 89 percent of Masters have mature
demand, organizations must start by supply-chain network-design practices,
future-readiness to allow assessing how ready they are to capitalize versus 39 percent of the rest. This
adoption of the new on the emerging trends that have a bearing reflects the Masters’ understanding that
supply-chain paradigm on their supply chains. The Supply-chain it is necessary to balance the traditional
Masters in our survey have done exactly demands of efficiency and high levels of
Supply chains of large global organizations that: 71 percent have stress-tested their customer service with efforts to meet
have undergone numerous changes over the supply chains (using “what if?” scenarios) sustainability requirements, ensure
past 2–3 years. Large retailers, for example, compared with only 35 percent of the business continuity, and nurture resilience
are re-evaluating their distribution and rest. As they reassess their supply chains’ to geopolitical shocks. María Fernanda
manufacturing footprints to personalize resilience to future shocks and design Fornells, Senior Director Supply Chain,
the customer experience and drive new customer experiences, they have Haleon states: “Integrating design, and then
e-commerce profitability through omni- made significant adjustments: 87 percent understanding what changes are expected and
fulfillment (selecting, picking, packing, and of Supply-chain Masters stated that their how those changes could improve the business,
delivering products across various channels, supply chain had changed significantly in the is important. We need a 360-degree approach
involving data-driven synchronization) and past two years. for consumers, our internal stakeholders, and
automated warehouses. the people that will do the job.”

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Organizations can take the following steps processes at each stage of the supply parts by consolidating spend with four
to refashion their supply chains to meet chain. In 2021, the organization introduced high-performing suppliers.12 Organizations
these new demands. a 'design-to-consumer' value approach to should revisit core and non-core activities
realize cost efficiencies, while providing the in their supply chains to increase resiliency.
Start by analyzing the impact of elements that matter most to the consumer. For example, should transportation be
emerging trends on your supply The organization over-delivered by 50 considered as a core competency, given
chain and assessing your readiness percent on its goals for the year and has rising freight costs, freight disruptions, and
to capture any benefits plans to improve on that going forward.11 labor shortages? It should also be noted that
greater localization of products requires
Sixty-four percent of Masters have aligned Recognize missed opportunities over organizations to build relationships with
their supply-chain objectives with broader the past few years and test areas of regional transport providers.
business goals, compared with only 40 vulnerability to measure progress
percent of the rest. María Fernanda Fornells Similarly, organizations need to adapt
comments: “First, determine what you would Masters focus their efforts on improving their operating models in response to new
like to achieve as a business, and the critical quality, planning, and sourcing to trends. Consumer products (42 percent),
success factors. Next, take small steps, trying generate maximum incremental value. retail (39 percent), manufacturing (42
to collect all the required pieces and build up percent), and life sciences (41 percent)
Amid global uncertainties, organizations
an organization-wide scope. Third, ensure the organizations have cited the emergence of
face restrictions on the movement of
solution is appropriate to the company. There new operating models (such as omnichannel
goods across borders. In response to
are a lot of ostensibly attractive solutions, but fulfillment and remote working) as a key
this threat, many have taken steps to
you need to understand what is going to create challenge. María Fernanda Fornells at
strengthen relationships with top suppliers
a competitive advantage, and focus on that.” Haleon confirms: “What we've seen is the
to secure an uninterrupted supply of critical
parts. Rolls-Royce, a UK-based aerospace incredible impact of the e-commerce platforms,
US food company Mondelez is a case in
and defense organization, reduced its where our consumers buy directly. I think
point. The organization revisited its supply-
reliance on titanium supply from Russia Amazon and Netflix have created this mindset
chain network with a view to making it
by securing a long-term agreement with of instantaneous service and gratification.
more customer-centric (as opposed to
a US-based titanium supplier. It also So, customers want products to be delivered
manufacturer-centric). It analyzed the
achieved a 10-percent cost reduction on right now. Customers are also moving towards
implications for the consumer of its

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

“What we've seen is the incredible impact of the

e-commerce platforms, where our consumers
buy directly. Customers want products to be
delivered right now. Customers are also moving
towards self-service patterns. They don't want to
call anyone and want quick answers. So,
omnichannel communication is key.” María Fernanda Fornells
Senior Director Supply Chain, Haleon

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self-service patterns. They don't want to suppliers in the area, gauging potential (outbound logistics, for example) of their
call anyone and want quick answers. So, impact, and sourcing alternatives. Within supply chain. There is a need to upgrade the
omnichannel communication is key.” days, the organization had secured orders control-tower model into an integrated and
for components with suppliers outside the connected solution that provides improved
Embrace technology and impacted region.26 visibility for the entire supply chain.
automation as part of your
organization's operational culture Build capabilities and Yum China Holdings has developed a supply-
chain control tower to link data from its
Organizations should automate processes scale technologies as otherwise siloed system to allow integrated
to generate efficiencies and redeploy part of a composable and management reporting and intelligent
resources to value-adding aspects such decision support. It created various
as customer interactions, analysis, and integrated architecture dashboards, including: 1) details of supplier
decision-making. Organizations in retail Build and deploy a composable, integrated, performance and food-safety sampling test
(52 percent), manufacturing (45 percent), and customer-centric architecture,
life sciences (44 percent), and consumer combining a transactional backbone, ERP,
products (40 percent) have cited federated best-of-breed industry solutions (notably
and siloed data lakes as a current challenge. for execution), as well as data-sharing and 77 percent of Supply-chain Masters
Organizations that lead in terms of
technology uptake report less downtime,
collaborative platforms to break down siloes
and enable end-to-end management, from
collaborate with external entities versus
even during severe disruptions. Automotive simulation to AI-based event monitoring. 35 percent of others.
supplier Aptiv built a digital twin of its Build and deploy a composable
supply chain, allowing it to plan scenarios customer-centric architecture,
and respond to change quickly. In 2021, results; 2) supply and demand planning, with
control tower, and digital twins details of demand and inventory forecast
flooding in Belgium and Germany impacted
the organization’s connector business and Although control towers have been around accuracy by segment and by brand; 3) for
movement of some of its raw-materials for more than a decade, implementation logistics centers, with details of inventory
supplies. Using real-time information has been patchy. Often, organizations have level by product category. The organization
the organization was able to work with different control towers for different parts is customizing this report for mobile devices

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

to increase accessibility and connectivity, as improve them, but also predict how they decision-making, adaptive leadership
well as faster decision-making.22 will perform in different scenarios. skills, etc.) who can respond to a dynamic
environment, compared with only 39
At Kraft Heinz, a control-tower solution For instance, home-improvement retailer
percent of others.
provides real-time visibility of plant Lowe’s created a digital twin of one of
operations and automation of supply- its stores to help its associates improve Attaining consistently game-changing levels
chain distribution across its 85 product efficiency of operations and better of execution in the supply chain requires
categories. Kraft Heinz will also create serve customers through accessing and masterful use of digital technologies at the
digital twins for its 34 manufacturing interacting with the store’s digital data. grassroots level, backed up by organization-
facilities in North America, to help test In the future, the digital twin will enable wide understanding and commitment. For
and refine solutions and processes before new ways of viewing sales performance example, organizations treating demand-
implementing them on the plant floor. For and customer traffic; for example, it can planning as a strategic priority can prioritize
example, the technology will help predict simulate the act of customers or associates investment in continued upskilling of
optimal product capacity and reduce picking up items often bought together to demand planners and foster a knowledge-
mechanical interruptions by proactively enable time-saving proximate positioning of sharing community across different
addressing issues before they occur, those products in stores.14
ensuring only the highest-quality products
reach the consumer.13 Invest in skills and capability building

A digital twin is a virtual replica of a physical Supply-chain Masters plug capability gaps

81
system that can model, simulate, monitor, by developing in-house talent (82 percent);
analyze, and constantly optimize its adding new talent through mergers and %
counterpart in the physical world. Through acquisitions (76 percent); and partnering
its ability to answer questions such as “what with business or IT service providers (74
is best?”, “what if…?”, and “what next?”, a percent). The future-fit supply chain needs
of Masters have skilled employees who can respond to a dynamic
digital twin can not only provide visibility future-fit people. Eighty-one percent
environment, compared with only 39% of the others.
on how dynamic, real-world systems are of Masters have skilled employees (with
currently performing and propose how to digital and soft skills, including analytics,
technology, tools, applications, data-driven

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

geographies or products. The objective is We found that Supply-chain Masters are

to equip employees to compile their own significantly ahead in monitoring supply-
datasets, which they can then analyze chain improvements over time:
for purpose.
• Around 78 percent of Supply-chain
Clearly define roles and Masters have a dedicated supply-chain
responsibilities to balance transformation office versus only 45
multiple demands percent of the rest
• At 66 percent of Supply-chain Masters,
Organizations in the consumer products the supply-chain head reports directly to
(46 percent), life sciences (51 percent), and the board on the progress of supply-chain
retail (43 percent) sectors state that lack transformation initiatives, compared with
of clarity on roles and responsibilities is 48 percent of other organizations
the most common hindrance to successful • At 77 percent of Supply-chain Masters,
transformation of the supply chain. the sustainability leader’s inputs are
Dr. Dirk Holbach, Chief Supply Chain Officer, considered critical compared with only 48
Henkel Global Laundry & Home Care, adds: percent of the rest of the organizations
“What we have learned is the main challenge Build a data-driven and collaborative
is not the technology – which is out there, culture across both internal
and you can buy it – it is much more the
and external ecosystems
soft factors, such as change management.
You have to get both right, and involve your Consumer products (38 percent), retail (40
teams in the transformation journey.” 16 In percent), manufacturing (36 percent), and
the manufacturing sector, 43 percent of life sciences (38 percent) organizations have
organizations have cited inability to balance stated that cultural pushback to change is
multiple demands as a major challenge. the most common tactical hindrance.
According to Lidia Fonseca, Executive
Vice-President and Chief Digital and

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Technology Officer at Pfizer: “Pfizer’s move of its supply chain. This also translated • The imperative to secure supply and
toward supply-chain analytics has helped into higher customer satisfaction, even enhance visibility of critical-parts supply
it transform into a leaner, more science- during component shortages, serving new chains, with organizations requiring
driven, more patient-focused organization. customers and reducing the cost of visibility of supplier operations at tier-2,
To succeed, we have had to communicate the quality failure due to lower volumes of tier-3, and other levels
company’s digital strategy clearly, in order to product scrap.17 • The requirement to establish traceability
inspire employees’ support and participation. of parts to guarantee authenticity and
Similarly, retailer Kroger set up cross-
Our culture was instrumental in encouraging track the movement of products
functional and collaborative in-stock
our employees to be courageous and think • Improving resilience to external shocks
teams dedicated to solving supply-chain
differently in order to accomplish what we • Nurturing agility in responding to trends
issues, working with its supplier partners
previously would not have imagined possible.”17 • Increase diversity and inclusion criteria for
to produce detailed plans to free up
supply-chain vendors (such as sourcing
Seventy-three percent of Masters have set constrained product lines.18
agri-commodities from small farmers)
up a cross-functional risk-management team
for supply-chain operations, compared with Create data-driven supplier
and customer relationships Organizations that integrate their systems
41 percent of the rest. At Schneider Electric,
externally see the benefits. Our research
strong collaboration between sustainability, Supply chains are increasingly driven by revealed that 77 percent of Supply-chain
global supply chain, lines of business, and geopolitical events impacting the flow of Masters collaborate with external entities
customer satisfaction and quality teams materials. Moreover, growing demand for (suppliers, distributors, retailers, etc.),
has given rise to new processes, enabling sustainable products and more frequent versus 35 percent of others. Eighty-two
the organization to revalorize customer weather-related disruptions require percent of Masters have scaled deployment
returns. Through the reuse of components organizations to predict and prepare, rather of integrated and collaborative planning via
or remanufacturing of new products in the than simply react. the cloud, compared with only 32 percent of
organization’s local adaptation centers, it
New demands on supply chains to connect the rest.
is able to accelerate progress towards its
sustainability ambitions. For instance, it was to external ecosystems are driven by: Often, organizations have deployed
able to comply with the upcoming anti- • Vendor accountability for sustainable various off-the-shelf solutions, such as
waste law and reduce the carbon footprint sourcing and procurement procurement, demand-supply matching,

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Supply chains are increasingly

driven by geopolitical events
impacting the flow of materials.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

and supplier collaboration, leading to siloed platform, which provides a single digital Organizations can better harness
data systems. They need to reset their data point of engagement. It enables customers technology and knowhow to reduce
architectures to connect to these platforms (including bars and restaurants) to view emissions at the supplier’s end through the
and tap into external ecosystems. Diageo’s portfolio of SKUs, place new following steps:
orders, review historical orders, and view
Alcoholic beverages organization • Invest in supplier training and education:
invoices and billing information. Customers
Diageo has kicked off several initiatives Suppliers in most sectors lack the training
have access to tools and data that help them
to encourage close collaboration with and conditioning to tackle emissions-
generate value and accelerate decision-
suppliers and customers. With real-time reduction. Furthermore, expectations
making. As a result, Diageo was ranked top
shipment tracking, the organization could are rising to include other social
for supply chain and customer service in the
determine the status of all global customer commitments, such as sourcing from
UK and 4th globally, up nine places from
shipments during the Suez Canal blockage, minority groups, women entrepreneurs,
2019 and seven places above its nearest
for instance. It determined that the ship etc. Large organizations can extend their
spirits competitor, in the Advantage Group
blocking the canal did not contain Diageo
International UK Beer, Wines and Spirits
products, but that the organization would
report.19
be impacted by the resulting backlog
of vessels. This insight allowed the Reassess relationships across the
organization to communicate proactively supply chain through both resilience
with shipping lines and customers. Diageo and sustainability lenses: As supply-chain
created a virtual incident room, prioritizing emissions are the greatest contributor to
its own shipments and putting contingency organizational emissions, organizations
plans into action. The organization is in the can ill afford to ignore sustainability
process of integrating its system with those considerations across supplier relationships.
of its customers to unify trade terms and More than 50 percent of clients at DHL, a
cost-to-serve initiatives, as well as real-time leading logistics services provider, request
transport-performance visibility. information on responsible business
practices as part of their tender processes.21
The organization facilitated customer
connectivity through the Diageo One

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

support to identify the correct starting Sustainability is as much about diversity

points for their suppliers’ sustainability of supplier base, traceability of source
journeys. materials, and workforce wellbeing and
• Set clear metrics for measurement: safety, as it is about emissions. Many

68%
Sustainability could mean different organizations feel they are impacted by
things to different supplier and customer these trends but are not ready to deliver on
groups. For each supplier group, set them in the near term. Sixty-eight percent
up transparent indicators by which of organizations recognized the importance
their sustainability ratings will be of developing end-to-end transparency and
assessed. Ideally, sustainability will be traceability of products but less than 10
of organizations implemented across suppliers’ value percent are able to deliver on these.
recognized the importance chains. Focal metrics will help suppliers
A similar number of organizations were able
prioritize initiatives such as sourcing
of developing end-to- sustainable raw materials, packaging,
to ensure supplier diversity (sourcing from
end transparency and route optimization, green power, green
small businesses or ones which are owned/
operated by minorities, members of the
traceability of products. warehousing, waste management, labor
LGBTQ+ community, etc.), while almost 73
policy, etc.
percent of them cited it as an important
• Implement real-time tracking systems
emerging trend. Pivoting towards more
for sustainability: Collaboration not only
equitable sourcing opportunities requires
enhances sustainability but also helps
educating procurement teams about
organizations obtain real-time data on
how they can positively impact business
supplier operations to ensure quality,
performance by improving innovation,
speed, and accountability. Yum China
quality of sourcing, and cost-effectiveness.
has built end-to-end connectivity from
It also entails challenging leaders to think
the supplier’s plant to its systems. The
differently about how to include a more
system helps it obtain instant deviation
diverse set of suppliers. Recognizing this,
notifications, trend analysis, and risk
companies are committing more spend to
warnings, allowing it to take immediate
action to mitigate risk.22

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

diverse sourcing. For example, Mondelez set – Elevator engineering organization • End-to-end risk management: Set tiers, energy and utility providers). Close
a goal to spend $1 billion with minority and Kone is adopting multi-sourcing, up a cross-functional end-to-end risk- collaboration through real-time data sharing
women-owned businesses globally meaning it will have an alternative management team enabled by methods and setting up integrated systems will add
by 2024.23 supplier in place not just at elevator- and tools; develop real-time visibility of value to the entire industry value chain.
module level but also at components stocks/flows with suppliers and partners
As uncertainty in supply networks increases, Organizations can start with identifying
and parts level, a policy it will enforce through a shared-data approach.
more organizations are prioritizing resilient their role in the value chain, finding common
across its supply chain. It is also • Pandemic-proof planning and
operations that show the following corporate objectives and opportunities to
harmonizing supply-chain processes operations: Tap into customer/
characteristics: achieve them jointly. For instance, to achieve
and IT systems among suppliers to supplier and delivery data to improve
its sustainability goals, J&J, together with
• Network resilience: Well balance the ensure products and components logistical and post-sale efficiency. Use
nine other pharmaceutical organizations,
end-to-end geographical footprint; can be manufactured identically in an integrated collaborative platform
launched Energize, a platform to educate
secure an ecosystem of third-party different locations.2 for planning. Implement automated
industry suppliers on renewable-electricity
logistics and contract manufacturers; operations and goods-to-person
– Stanley Black & Decker, a US industrial procurement opportunities and to help
ensure end-to-end cybersecurity; technologies to improve the efficiency
tools and household hardware them transition to renewable energy.22
Integrate agility cost in cost to serve of operations and mitigate unexpected
manufacturer, is standardizing
model. Nike, for example, has a fully labor shortages.
components across its product range
outsourced and diversified supply chain
with manufacturing contracted out
to create economies of scale with its Empower an extended ecosystem
key suppliers. It is simplifying product
across over 500 factories.27 As supply chain complexity grows, an
design and consolidating its supplier
• Just-in-case resilience: Increase extended ecosystem (third-party logistics
base, and reducing time to market on
flexibility and interoperability within the firms, business consultancies, software
innovation by sharing design initiatives.
supply chain; build up stocks of critical vendors, hyperscalers, etc.) becomes
The organization aims to reduce the
parts/products; Enable omni-channel important to realize overall business
number of stock keeping units (SKUs)
model to balance stock availability across objectives. It helps not only in efficient and
in its system by over 40 percent and
markets and geographies ; develop multi- integrated operations, but in managing risks
deliver cost savings of approximately
sourcing strategies by engaging multiple and access to capital (insurance providers,
$300 million over the next three years.1
procurement partners investment bankers) and improving
sustainable operations (suppliers across all

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

CONCLUSION
Businesses have scrambled to navigate value chain, from design and procurement, industry or a company will be key to moving
disruption to supply chains, often caused through to product manufacture and forward successfully. Such a comprehensive
by factors out of their control. This has service provision and recycling, as well approach and model will require multi-
resulted in several ad-hoc implementations as having a profound effect on the disciplinary collaboration and investments
to maintain service levels. customer experience. in technology and automation, change
management, skills, collaboration, and
In parallel, new dimensions of supply- Resilience and sustainability will also
data governance. Changes are happening;
chain performance have emerged. A new drastically increase brand value to all
now things need to accelerate, and a
supply chain paradigm is already in action; stakeholders while facilitating access to
faster-moving, smarter supply chain will be
Supply chain trade-offs are now driven different sources of funding, improving
integral to this.
by four complementary forces: customer working conditions and giving employees
experience , global value chain , resilience a greater sense of purpose, with
and sustainability. knock-on positive effects on recruitment
and retention.
Moving toward an intelligent supply chain
is an holistic and stepwise transformation Cost and non-cost competitiveness,
that will require significant and consistent sustainability, and resilience will impact
investments and efforts over time. each other as well as the customer
experience. Each individual benefit case
New smart and sustainable products to be
must assess the impacts in those different
launched on the market in the next few
dimensions. Globally, defining the right
years will progressively reshape the whole
economic model and trajectory for an

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RESEARCH METHODOLOGY
To understand the maturity of intelligent
supply chains across sectors, we carried
out extensive research using both Organizations by country
qualitative and quantitative methods. The
study findings reflect the views of the 12% 12%
respondents to our online questionnaire
and are intended to provide directional
guidance. Please refer to the methodology 10% 10%
for details of respondents and get in touch
with a Capgemini expert to understand
8%
specific implications.
7% 7% 7% 7%
In-depth interviews
We conducted 10 in-depth interviews with 5% 5% 5% 5%
experts from large organizations who are
involved in the supply-chain domain.

Executive survey
We surveyed 1,000 supply-chain
executives from large organizations
across sectors. The global survey took
place in August and September 2022. The Australia France India Japan Netherlands Sweden United States
distribution of selected respondents and China Germany Italy South Korea Spain United Kingdom
their organizations is provided below.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Organizations by sector Executives by role

27% 1%
15%

Consumer General Manager

products of sites (plant,
distribution
Retail center, etc.)

Manufacturing Director / Senior

Director
Life sciences
VP / SVP / EVP
45%
32% 26% 54%

Research Methodology

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Organizations by annual revenue Executives by function

11%
11% 7% Between $1 billion 10% 10%
and $5 billion 9%
8%
18% Between $5 billion
and $10 billion 7% 7%
6% 6%
Between $10 5%
billion and $20 4% 4% 4%
billion 3% 3%
Between $20
32% billion and $50 1%
billion
Corporate Procurement/ Demand E-commerce Customer Quality Information Sustainability
More than $50 strategy sourcing and supply support services/
planning and services Information
32% billion (including technology(IT)
after-sales)
End-to- Manufacturing Distribution Sales and Operational Finance- Digital Engineering/
end supply production and logistics order excellence controlling design/
chain management development/
technical services

Research Methodology

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APPENDIX Axis Score Statement

Customer 5 – Strongly agree 4 – Agree We’ve already deployed a powerful omnichannel strategy
The following are the questions used centricity 3 – Neutral 2 – Disagree Is leveraging IoT and connectivity for location-based services, real-time tracking and tracing
to identify the Supply-chain Masters
1 – Strongly disagree
for our research. (Figure x) Integrates specialized e-commerce platforms with planning and execution systems

We can implement quick and cost-effective means to adjust to short-term disruptions/fluctuations in our supply
chain
We have an automated order-entry process for all our customers
We have an API and microservices-based supply chain architecture
Sustainability 5 – Very high level of preparation 4 – Maturity of initiatives
High level of preparation 3 – Medium Sustainability KPIs are considered alongside other business KPIs
level of preparation 2 – Low level of
preparation 1 – Very low level of
preparation
Efficiency 5 – Strongly agree 4 – Agree Our inventory levels (or inventory turnover) are comparable to the best in the industry
3 – Neutral 2– Disagree 1 –Strongly Cost optimization
disagree Automated or robotized processes in the supply chain, where possible
We can run continuous improvements of service levels for each node of the supply chain

Resilience 5– Strongly agree 4 – Agree Rebalanced our geographical footprint to secure market access, customers, and suppliers, in the past 2–3 three
3 – Neutral 2– Disagree 1– Strongly years
disagree Evaluated partners’/suppliers' capacity to fulfill our requirements to ensure business continuity
Systematically deployed multi- as opposed to mono-sourcing strategies
Set up an ecosystem of contract manufacturers and global third-party logistics organizations
Continuously integrated external data (political risks, market surveys, social-media crawling, etc.) to aid decision
making

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Axis Score Statement

Vision and 5 – Very high level of preparation 4 – We have mastered agile methodologies for working cross-functionally function working within business and
leadership High level of preparation 3 – Medium IT teams
level of preparation 2 – Low level of Ability to digitally integrate the plan, make, source and deliver functions of your organization
preparation 1 – Very low level of A culture of cross-functional collaboration and data sharing
preparation
Skilled employees (with digital and soft skills, including analytics, technology, tools, and applications,
data-driven decision-making, adaptive leadership style, etc.)
Data governance (managing the availability, use, integrity, and security of data)
Change management, it’s communication and implementation
Ecosystem 5 – Very high level of preparation 4 – Deployed at scale integrated and collaborative planning, leveraging cloud platforms
empowerment High level of preparation 3 – Medium Maturity in ecosystem collaboration
level of preparation 2 – Low level of Strong collaboration with ecosystem players (customers, suppliers, peers, etc.) – one of the top investment
preparation 1 – Very low level of areas
preparation

Score level of preparedness to be a Supply-chain Master

Greater than 100: Very high level of preparation
75-100: High level of preparation
50-75: Medium level of preparation
25-50: Low level of preparation
<25: Very low levels of preparation

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REFERENCES
1. Earnings call transcript, "Stanley Black its supply chain,” 4 August 2022. 19. Diageo plc - Analyst/Investor Day transcript,
& Decker, Inc," 27 October 2022 11. Mondelez International, Inc. - Analyst/ 16 November 2021. DHL, The logistics
2. Call transcript, "KONE Oyj - Analyst/ Investor Day, 10 May 2022 trend radar – 5th edition, May 2022.
Investor Day," 2 June 2022 12. Rolls-Royce Holdings plc, H1 2022 20. Johnson & Johnson, Special Call
3. Unilever, Annual Report 2021. Earnings Call, 4 August 2022 transcript, 21 June 2022.
4. Marketline, “BMW creates closed 13. “Kraft Heinz and Microsoft join forces 21. Novartis website, Novartis Green
recycling loop for battery raw to accelerate supply chain innovation as Expectations from Suppliers 2022.
materials in China,” May 2022. part of broader digital transformation,” 22. Yum China Holdings analyst/investor
5. Unilever, Annual Report 2021. PR Newswire, 21 April 2022 day transcript, 23 September 2021.
6. Microsoft, “Johnson & Johnson 14. “Lowe's unveils industry-first digital 23. Mondelez International 2021 ESG report
advances global health and avoids twin, giving associates 'superpowers' 24. Transcript, Carrefour SA - Special Call,
supply chain disruptions,” Nov 2021. to better serve customers,” PR 9 Nov 2021
Newswire, 20 September 2022
7. Microsoft, “Johnson & Johnson advances 25. Event transcript, "Johnson & Johnson
global health and avoids supply chain 15. [Link] - Special Call", 21 June 2022
disruptions,” November 2021. henkels-factories-are-unlocking-
26. Event transcript, "Aptiv plc Presents
value-through-data-sharing/
8. Analytics Steps, “How BMW uses at BofA Securities Global Automotive
artificial intelligence AI,” June 2021. 16. [Link], “Supply chain analytics: 3 Summit 2022", 12 April 2022
success stories,” 22 February 2022.
9. Honeywell International Inc. - Special 27. Nike website, [Link]
Call transcript, 3 March 2022. 17. Schneider Electric, Annual Report 2021. [Link]/, accessed 13 December 2022
10. Food Business News, “Conagra 18. The Kroger Co. - Special Call
Brands reimagining and renovating transcript, 4 March 2022.

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KEY CONTRIBUTORS
Jean-Pierre Petit Frédéric Berne Mayank Sharma
Digital Engineering and Head of Intelligent Supply Vice President | Supply Chain
Operations Group Offer Leader Chain CoE Capgemini
Capgemini Capgemini France, [Link]@[Link]
[Link]@[Link] [Link]@[Link]

Susan Davies Idriss Elasri Clément Falquet

Vice President, Capgemini Invent Managing Director, Capgemini Global Supply Chain Transformation
[Link]@[Link] Engineering Morocco Lead, Capgemini Invent
[Link]@[Link] [Link]@[Link]

Lindsey Mazza
Global Retail Lead, Capgemini
[Link]@[Link]

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KEY CONTRIBUTORS
Jerome Buvat Sumit Cherian
Global Head of Research and Head Senior Manager, Capgemini Research
of Capgemini Research Institute Institute
[Link]@[Link] [Link]@[Link]

Subrahmanyam Kanakadandi Gaurav Aggarwal

Senior Director, Capgemini Senior Manager, Capgemini Research
Research Institute Institute
[Link]@[Link] [Link]@[Link]

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

The authors would also like to thank Sven Dahlmeier,

Dharmendra Patwardhan, Michael Becker, Delphy Amarat,
Michael Cook, Sébastien Neyme, Brian Eden, Mike
McCullough, Nouha En-Nabty, Andrew Stainsby, Louise FOR MORE INFORMATION,
PLEASE CONTACT:
Barbolosi, Moise Tignon, Marie-Neige Couriaut, Azfar
Mallick, Jatinder Kautish, Courtney Holm, Ralph Schneider-
Maul, Sergey Patsko, Christian Michalak, Daniel Evers,
Sandip Sharma, James Robey, Ozlem Bozyurt, Sophie Pantel,
Pratyush Dubey, Manisha Dash, Kristin Morris, Manish Saha
and Ashwani Kumar for their contribution to this research.
Global contacts Regional Contacts
Jean-Pierre Petit Frédéric Dispa
About the Digital Engineering and Intelligent Industry Leader -
Capgemini Research Institute Operations Group Offer Leader Southern & Central Europe
The Capgemini Research Institute is Capgemini’s in-house Capgemini [Link]@[Link]
think tank on all things digital. The Institute publishes [Link]@[Link]
research on the impact of digital technologies on large
traditional businesses. The team draws on the worldwide
network of Capgemini experts and works closely with
Mayank Sharma Mark Landry
academic and technology partners. The Institute has
dedicated research centers in India, Singapore, the United Vice President | Supply Chain Intelligent Industry Leader
Kingdom, and the United States. It was recently ranked Capgemini - Americas
number one in the world for the quality of its research by [Link]@[Link] [Link]@[Link]
independent analysts.

Visit us at [Link]/researchinstitute/
Clément Falquet Vikas Kumar
Global Supply Chain Intelligent Industry Leader - APAC
Transformation Lead, [Link]@[Link]
Capgemini Invent
[Link]@[Link]

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From traditional to Intelligent supply chain

CAPGEMINI CAN Our service offerings address the new business and technological challenges …

HELP ACCELERATE 06
SUPPLY CHAIN CONTROL
TOWER AND E2E
Design, integrate and deploy cloud–based supply chain platforms, to
progressively provide end-to-end visibility, traceability and advanced event
monitoring capabilities while driving end-to-end performance
YOUR SUPPLY CHAIN
PERFORMANCE MANAGEMENT

Network monitoring Planning Procurement Execution

TRANSFORMATION
01 02 03 04
INTELLIGENT NETWORK SMART FORECASTING 360° SOURCING TOUCHLESS AND
DESIGN AND RISK AND INTEGRATED ANALYSIS AND SUPPLIER AGILE ORDER
MANAGEMENT BUSINESS PLANNING COLLABORATION TO DELIVERY
Segment end-markets and Design, build and deploy Design, build and deploy Architect, integrate and
channels, differentiate smart forecasting and supplier scorecards - deploy IS solutions and
service offerings and integrated business planning resilience, performance automation, from smart
design intelligent supply to better anticipate and sustainability - and order management to
chain networks* all along customer demand while collaborative platforms to agile warehousing and
product life cycle, while optimizing service, stock constantly improve transportation, to optimize
monitoring systemic risks levels and enterprise overall supplier effective- customer experiences and
over time performance management ness operations

Network reconfiguration Planning Procurement Execution

Provide externalized business services all along the supply chain while
05 SUPPLY CHAIN AS A
SERVICE progressively applying best practices and digitalization

… across: resilience, customer experience, globalization and sustainability

Capgemini Research Institute 2022

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

Delivering such a vision requires a composable architecture …

PLAN

SOURCE MAKE STORE DELIVER SERVER

Years

Strategic
Network Design Sales & Distribution
Channels

Month APS (Advanced Planning System)

S&OP and IBP
Purchase Planning Production planning Demand Driven Planning Distribution Res. Planning Forecasting
Tactical
Supplier Collaboration

Collaborative Planning
Enterprise
Weeks E2E performance powered by Analytics Performance
Supplier

Management

Operational ERP
Procurement Management Production Inventory Delivery Ordering
Days
Control Tower
Execution MES* WMS TMS OMS
(Warehouse Management (Transport (Order Management E-commerce
360° Sourcing visibility Manufacturing execution
System) Management System) System)

Real time Process automation

External data providers Third Party
* Out of Scope
… combining transactional backbones, best of breed solutions, data and collaborative platforms

Capgemini Research Institute 2022

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

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How greater intelligence could supercharge supply chains. Augmented resilience, performance, and sustainability will allow organizations to take on a customer-centric focus.

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