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Deloitte, ASCM Push Digital Supply Networks—Not Chains

Deloitte and the Association for Supply Chain Management (ASCM) released the Digital Capabilities Model (DCM) for Supply Networks, designed to help transform supply chain management in an increasingly interconnected and digital world.

Compatible with the Supply Chain Operations Reference (SCOR) digital standard, the new model helps companies advance their capabilities from traditional linear supply chains to digital supply networks.

“Traditional supply chain objectives are becoming harder to achieve, given increased market volatility and complexity, digital disruption and shifting consumer expectations,” Chris Richard, principal and high tech sector lead for supply chain and network operations at Deloitte Consulting, said. “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.”

In a recent Deloitte survey, 67 percent of respondents said developing digital and analytics capabilities was the most, or very, important to delivering the overall supply chain strategy. However, 56 percent said they spend $5 million or less on digital and analytics capabilities annually.

The organizations said DCM works for any company that has “digital transformation” on its supply chain roadmap. The model helps organizations understand the complexity of digital supply networks and assess their company’s process maturity.

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For companies that have adopted SCOR, each DCM capability 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,” ASCM CEO Abe Eshkenazi said. “The Digital Capabilities Model for Supply Networks extends SCOR to the digital era, providing businesses with guidance that will carry them into future decades.”

In conjunction with the DCM, Deloitte and ASCM are launching a readiness assessment for businesses interested in evolving their supply chains for the digital age. The assessment is aimed at helping companies understand how their digital capabilities measure up. It will also provide each respondent with a set of guidelines and best practices for introducing capabilities into their supply chains and across various areas of their business.

The DCM for Supply Networks will continue to evolve and 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.

Deloitte provides audit, consulting, tax and advisory services to many of the world’s top brands, including nearly 90 percent of the Fortune 500 and more than 5,000 private and middle-market companies. ASCM, the largest non-profit association for supply chain, helps enterprises and empowers people with global standards to optimize their supply chains and secure their competitive advantage.