Deloitte and the Association for Supply Chain Management (ASCM) has released the Digital Capabilities Model (DCM) for Supply Networks. The program is designed to help transform supply chain management for the interconnected and digital world.
DCM is compatible with the Supply Chain Operations Reference (SCOR) Digital Standard, helping companies advance their capabilities from traditional linear supply chains to digital supply networks, the dynamic, interconnected systems that simultaneously plan, execute and enable digital supply chains.
"Traditional supply chain objectives are becoming harder to achieve, given increased market volatility and complexity, digital disruption and shifting consumer expectations," says Chris Richard, principal, high tech sector lead for supply chain and network operations, Deloitte Consulting LLP. "Through our collaboration with ASCM, we are setting a new standard for supply networks management and helping businesses and nonprofits update and adapt practices to increase efficiency, drive results, and innovatively enhance performance in a rapidly changing world."
According to a recent survey by Deloitte, 76% of respondents said developing digital and analytics capabilities was the most or very important to delivering the overall supply chain strategy. However, 56% of respondents said they spend $5 million or less on digital and analytics capabilities annually, demonstrating a need for a more strategic investment.
DCM helps organizations understand the complexity of digital supply networks and assess their company's process maturity. For those that have adopted SCOR, each DCM capability is mapped to relevant elements in the SCOR Digital Standard. This compatibility enables immediate application without having to redo process, metrics or practices.
"For more than two decades, the SCOR model has successfully served as the supply chain profession's global, cross-industry standard," said ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE. "The Digital Capabilities Model for Supply Networks extends SCOR to the digital era, providing businesses with guidance that will carry them into future decades. We are proud to collaborate with Deloitte to develop this next-generation, industry-leading supply chain standard."
With the DCM, Deloitte and ASCM are launching a readiness assessment for business interested in evolving their supply chains for the digital age. The assessment will help practitioners understand how their organization's digital capabilities measure up. In addition, it will also provide each respondent with a set of guidelines and best practices for introducing capabilities into their supply chains and throughout their organization across various lines of business.
The Digital Capabilities Model for Supply Networks will continue to evolve over time. It will adapt alongside the organizations it advises to keep pace with emerging technologies and larger industry trends, with the ultimate goal of the new model being continuous education. By responding rapidly and effectively to the latest technological advances, supply chain practitioners and business leaders can work toward creating a competitive edge in increasingly competitive marketplaces.