Characterized by end-to-end digitization of both processes and physical assets, the new digital supply chain has been enabled by reliable internet connectivity, big data and emerging technologies like artificial intelligence and intelligent sensors. The result is the onset of a modern industrial revolution—and the business implications are profound.
Even as Technology, Media and Telecom (TMT) companies recognize the need, they have struggled to evolve their supply chains amid a volatile reality. Rapid changes in technological capabilities have resulted in products with shorter life-spans, consumers with higher expectations and more sophisticated tastes and the onslaught of non-traditional competitors. Meanwhile, supply chain networks themselves have become increasingly complex, with global supply sources and longer lead times adding to volatility. These conditions have created a perfect storm, through which TMT companies must learn to navigate skillfully. It will require efficient, intelligent supply chain planning, from top to bottom and across the globe.
Increasing difficulty in forecasting demand across complex product portfolios and multiple supply chains.
Supply chains consisting of ever-increasing variables to support multiple routes to market, product strategies and business models.
A lack of transparency across the supply chain (e.g., transit, suppliers) creates uncertainty and a lack of trust, as well as hindering strategic and tactical decision-making abilities.
Customer demands for shorter fulfillment cycles, aggravated by rapid product innovation resulting in shorter product lifecycles and coupled with competitive pressure to differentiate.
Pressure to drive structural cost reduction, to do more with less and reduce cost to fulfill and serve, exacerbated by pressure from non-traditional competitors.
A digital supply chain cannot be achieved with little tweaks or efficiency wins. Rather, the TMT companies that will thrive in the new economy will be those who adopt—as early as possible—the tech trends that are driving its upheaval.
We see companies exploring new technologies like machine learning (ML), internet of things (IoT) and artificial intelligence (AI). However, companies are still struggling to fully adopt digital technologies and leverage their data assets to develop deeper insights into their supply chain.
The tech trends impacting supply chains vary somewhat by industry. While there is some cross-over, Technology, Media and Telecom companies each have different trends to be aware of and prepare for.
With our connected supply chain and benchmarking experience, PwC can assist TMT clients in solving their most complex supply chain business problems by leveraging the full capabilities of SAP’s Integrated Business Planning and other solutions in SAP’s intelligent suite of applications.
With Integrated Business Planning at the center, we can further help TMT companies extend the solution by leveraging the emerging technologies relevant to TMT industries, such as IoT, ML, AI, blockchain and others.
Director, PwC SAP Technology, PwC US