Moving from the supply chain to the digital supply network

Real-time, digital information has become critical to the success of both today’s 24/7, business-to-consumer (B2C) and business-to-business (B2B) operations, and to their suppliers, manufacturers and partners. Traditionally, companies have operated supply chains with a linear, sequential paradigm, following a model made popular and accessible by the Supply Chain Operations Reference (SCOR) model. Digital technology capabilities such as artificial intelligence (AI), Internet of Things (IoT), machine learning, robotics, additive manufacturing and advanced analytics are not only driving changes to the SCOR standard, but are also raising a new set of questions regarding the nature and relationship of more complex and tightly integrated supply networks. These dynamic, interconnected systems concurrently plan, execute and enable digital supply ‘chains’ — we refer to this next generation model as a digital supply network (DSN). This paper lays the foundation for this transformational journey, by introducing key disruptions that are enabling organisations to move beyond the limitations of traditional supply chains and explaining the core characteristics of DSNs. With the intent of providing a voice of leadership as supply networks become more digital, Deloitte Consulting and the Association of Supply Chain Management will release an initial version of the DSN Capability Model in September 2019 to provide an overview of DSNs. In subsequent releases, we will expand the body of knowledge, helping organisations to understand and build digitally enabled operational capabilities.