how can digital technologies drive operational excellence in manufacturing industries
Post on 16-Jul-2015
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Digital tools help overcome Information Paucity
How can Digital Technologies Drive Operational
Excellence in Manufacturing Industries
>30% of banking, insurance and telecom companies are digirati.
The manufacturing industy is a ‘beginner’ in digital maturity.
Over 90% of suppliers incur anywherebetween 0-7% of their sales as additionalcosts due to forecast deviations3.
In a Swiss manufacturingcompany, reliable planningreduced the additional transport required because of late deliveries, due to order
Companies can achieve savings
Manufacturing Companies Do Not Fully Leverage Technology
Flow of Digital Data Simplifies Supply Chain Management
Field Service Becomes more effective
using Digital Tools
Research indicates that while manufacturing companies have invested in technologies, they have largely done this in silos.
Only 38% of manufacturing industry executives indicated thatdigital initiatives in their company were coordinated acrossfunctions or regions.
Over 40% of supply chain executives believed that improving supply chainvisibility can result in the organization gaining a competitive advantage2.
58% of organizations treated theservice function as a profit center withclear profit and loss objectives in place5.
65% of incoming service requestsrequire a field visit or a dispatch6.
• point of sales connection and immediate customer order reactivity
• lack of inventory visibility during inbound transit, production and outbound transfer
• absence of integrated supply chain
The 3 major connectivity gaps in Supply Chain Management:
Integrated Businessplanning drives transparency
Similarly, 54% of organizationssee service as a means to rise abovecompetitive pressures from othermanufacturing or service organizations5.
Kinetico cut its service resolution time into half, post the deployment ofa cloud-based service management7.
Digital technologiesprovide multifunctionaltools for field technicians.
03
Digital tools enable effective schedulingof field force.
Digital tools drive overall productivity of service operations.
01
02
AssessMaturity
Define Vision& Mission
Prioritize
Define DigitalProcess &Architecture
Fix Basicsand Lay Foundation
Implement
01
02
03
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Reach out: Interested in reading the full report? Visit http://www.capgemini-consulting.com/operational-excellence-through-digital-in-manufacturing-industries
Follow us on Twitter @capgeminiconsul or email dtri.in@capgemini.com
Sources:
Create reliableorder confirmationstatuses
Form a feasibleproduction order planeliminating humanintervention
Digital Technologies Enhance Visibility
>70% of manufacturersstill use traditional methods of planning1
0102
0304
Preventunreasonabledelivery dates
Takeexisting capacityinto account
Integration of planning and execution tools enable organizations to
of Manufacturing Operations
Digital Manufacturing Processes
1 The Association for Operations Management, “Material Requirements Planning in a Demand-Driven World”, October 2011 Capgemini
Consulting analysis
2 Capgemini Consulting, “The 2013 Supply Chain Agenda”, 2012
3 VDA Study, 2008
4 Capgemini Consulting client
5 Aberdeen Group, “State of Service Management: Outlook for 2013”, January 2013
6 Aberdeen Group, “Field Service 2012”, February 2012
7 ServiceMAX case study
How can organizations achieve operational excellence
through Digital Transformation?
Digital tools bridge connectivity gaps
Order
Digital technologiesenable effective managementof information flow
Levi Strauss & Co. reduced manual trackingand tracing of inbound shipments
by 98% by implementing a supply chain visibility platform.
i
split, by 13% 4.
of over 20% in transport costsby using end-to-end planningsystems and processes4.
can increase the quality of service by 30%
Integrated Digital Supply Chain decreases inventory costs by 20%
Digital Service Function decreases labor call handling costs by 40%
Banking
Insurance
Utilities
Pharmaceuticals
Retail
High Technology
Transformation Management Intensity
Digi
tal I
nten
sity
Fashionistas Digirati
Beginners Conservatives
Packaged GoodsConsumer
Manufacturing
TelecomTraveland Hospitality
Digital intensity measures how advanced digital initiatives are within an organization.
Transformation management intensity measures senior executives’ capability to drive change throughout the organization.
Only12% of manufacturing companies are digirati,companies that fully leverage digital technology.
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