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Signaling the Future for Supply Chain Success
1. Signaling the Future for
Supply Chain Success
BUSINESS FUTURES 2021
From insights to action, the path to extraordinary value starts here.
#BusinessFutures2021
2. Supply chain executives today face a difficult reality. The past year has revealed new opportunities and
led to previously unimaginable transformations—particularly in the supply chain. Now supply chain
leaders must determine how to use the supply chain to help their organization capitalize on today’s
changes and opportunities for future success.
Accenture research has identified six Signals of business change for 2021 that are most critical to
understand and act upon to build a supply chain that enables the business to seize the future and
thrive.
For Business Futures 2021, nearly 250 Chief Supply Chain Officers (CSCO) provided their perspectives
on the importance of these Signals to their organization and when they’ll have the greatest business
impact. CSCOs who understand the Signals and their significance to their operations are best-
positioned to build the capabilities that are critical to driving profitable growth.
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3. Six Signals stood out as essential to the future success of
organizations
Pushed to
the Edge
Sustainable
Purpose
Supply
Unbounded
Real
Virtualities
The New Scientific
Method
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Learning from
the Future
Decentralize
decision-making.
Move from
purpose-focused
to purpose-run.
Break physical
limits of
fulfillment.
Redefine reality
and place.
Become a scientific
company.
See change before
it happens.
4. Rather than focus on the past for insights, leading supply chains
use data analytics and artificial intelligence (AI) to make
decisions and define strategies that better anticipate and “learn
from” the future.
Learning from the future can open up new growth
opportunities. New sources of data and AI-driven models can
be applied across companies’ product development, supply
chain and sales lifecycles to give them greater confidence that
they are on the right path to growth. At the same time, learning
from the future can help companies prepare for risks.
Signal 1:
Learning from
the Future
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83%
of CSCOs said that using more forward-
looking data sets and analytic approaches to
better predict and respond to future events
will be important to their success.
5. Supply chain executives are pushing decision-making authority to people at the “edges,” relying on highly
networked teams to act with speed and agility.
Organizations expect trade to become further regionalized in the years ahead. At the same time, consumer-
loyalty dynamics have shifted. Today, the challenge for the supply chain organization isn’t just that customer
preferences are uncertain; it’s also that preferences are changing differently in different markets. Supply
chains that push decision-making authority to the edges will be best positioned to understand and meet
these ongoing changes in demand.
Signal 2:
Pushed to the Edge
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46%
81%
of CSCOs believe the world is
fragmenting and…
believe that centralized business
governance is outdated.
6. Responding to the call for businesses to serve stakeholders broadly, organizations are
building sustainability into the fabric of their supply chain operations—and making
social responsibility sustainable.
The supply chain has enormous potential to impact sustainability, in terms of both its
operations and its supplier base. Supply chains will be expected to help build a better
business by proactively solving ESG (environmental, social and governance) issues
such as carbon emissions, energy usage, material waste, and child labor across the
value chain.
Signal 3:
Sustainable Purpose
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97%
51%
of CSCOs say one of the biggest
barriers to generating value for
stakeholders is balancing their
interests, but…
will measure and track the impact
of their organization on all
stakeholders within the next three
years.
7. To meet growing customer needs for fast, flexible, cost effective,
and sustainable order fulfillment, companies are restructuring their
supply chains and moving production to the point of demand.
Breaking the physical limits of supply chains enables organizations
to do more with less, and thereby meet customers’ growing
expectations for order fulfillment in a cost-efficient and sustainable
way. Fulfilling more orders traditionally requires covering more
miles, but new technologies—and the business models they
enable—can minimize the impact of distance and borders on
business.
Signal 4:
Supply Unbounded
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91%
of CSCOs are taking steps to move
inventory storage closer to end
customers.
8. As virtual environments enhance our physical worlds and redefine our sense of place, innovative supply chain
organizations create new ways for people to work, consume, and socialize.
Virtual goods are becoming a real source of economic value. Virtual realities can also help companies meet
sustainability targets: Remote experiences mean less travel, less congestion and lower carbon emissions. In
addition, creating realistic 3D images of virtual prototypes could eliminate waste across supply chains and
manufacturing.
Signal 5:
Real Virtualities
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94%
88%
of CSCOs report that their
organizations are investing in
technologies to create virtual
environments and……
plan to invest further.
9. As scientific disruption enables the creation of better, cheaper, and more sustainable
products and services, leading companies will become scientific companies—and apply
science to tackle the world’s fundamental challenges.
The “new scientific method” allows organizations to put breakthroughs into real-world
use much faster by using digital technologies to accelerate the design-build-test-learn
cycle. The next wave of disruption holds the potential for a different outcome—resulting
in products and services that are simultaneously better, cheaper and more sustainable.
Signal 6:
The New Scientific Method
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98%
83%
of CSCOs agree that increased
scientific capability is critical to the
future competitiveness of
organizations, and…
say their organization is using digital
technologies to accelerate scientific
advances.
10. Assess
what the Signals mean for
the business as a whole
and the supply chain in
particular;
Design
a supply chain strategy that
will enable you to effectively
respond to the Signals,
aligning on and
communicating a plan for how
you’ll build your future supply
chain;
Reinforce
by putting in place clear
measurements and
incentives to encourage
change and ensure that it
sticks.
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Respond
to the Signals through swift
execution—and consistent
iteration—of the strategic
plan; and,
Using the Signals
11. The past year has clearly shown how vital the supply chain is—and what can
happen when unforeseen developments completely disrupt it.
Understanding the Signals of change can help supply chain executives build a
more resilient, relevant and responsible supply chain that prepares companies
for what’s next so they can thrive in the future.
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