how can digital technologies drive operational excellence in manufacturing industries

Digital tools help overcome Information Paucity

How can Digital Technologies Drive Operational

Excellence in Manufacturing Industries

>30% of banking, insurance and telecom companies are digirati.

The manufacturing industy is a ‘beginner’ in digital maturity.

Over 90% of suppliers incur anywherebetween 0-7% of their sales as additionalcosts due to forecast deviations3.

In a Swiss manufacturingcompany, reliable planningreduced the additional transport required because of late deliveries, due to order

Companies can achieve savings

Manufacturing Companies Do Not Fully Leverage Technology

Flow of Digital Data Simplifies Supply Chain Management

Field Service Becomes more effective

using Digital Tools

Research indicates that while manufacturing companies have invested in technologies, they have largely done this in silos.

Only 38% of manufacturing industry executives indicated thatdigital initiatives in their company were coordinated acrossfunctions or regions.

Over 40% of supply chain executives believed that improving supply chainvisibility can result in the organization gaining a competitive advantage2.

58% of organizations treated theservice function as a profit center withclear profit and loss objectives in place5.

65% of incoming service requestsrequire a field visit or a dispatch6.

• point of sales connection and immediate customer order reactivity

• lack of inventory visibility during inbound transit, production and outbound transfer

• absence of integrated supply chain

The 3 major connectivity gaps in Supply Chain Management:

Integrated Businessplanning drives transparency

Similarly, 54% of organizationssee service as a means to rise abovecompetitive pressures from othermanufacturing or service organizations5.

Kinetico cut its service resolution time into half, post the deployment ofa cloud-based service management7.

Digital technologiesprovide multifunctionaltools for field technicians.

03

Digital tools enable effective schedulingof field force.

Digital tools drive overall productivity of service operations.

01

02

AssessMaturity

Define Vision& Mission

Prioritize

Define DigitalProcess &Architecture

Fix Basicsand Lay Foundation

Implement

01

02

03

04

05

06

Reach out: Interested in reading the full report? Visit http://www.capgemini-consulting.com/operational-excellence-through-digital-in-manufacturing-industries

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Sources:

Create reliableorder confirmationstatuses

Form a feasibleproduction order planeliminating humanintervention

Digital Technologies Enhance Visibility

>70% of manufacturersstill use traditional methods of planning1

0102

0304

Preventunreasonabledelivery dates

Takeexisting capacityinto account

Integration of planning and execution tools enable organizations to

of Manufacturing Operations

Digital Manufacturing Processes

1 The Association for Operations Management, “Material Requirements Planning in a Demand-Driven World”, October 2011 Capgemini

Consulting analysis

2 Capgemini Consulting, “The 2013 Supply Chain Agenda”, 2012

3 VDA Study, 2008

4 Capgemini Consulting client

5 Aberdeen Group, “State of Service Management: Outlook for 2013”, January 2013

6 Aberdeen Group, “Field Service 2012”, February 2012

7 ServiceMAX case study

How can organizations achieve operational excellence

through Digital Transformation?

Digital tools bridge connectivity gaps

Order

Digital technologiesenable effective managementof information flow

Levi Strauss & Co. reduced manual trackingand tracing of inbound shipments

by 98% by implementing a supply chain visibility platform.

i

split, by 13% 4.

of over 20% in transport costsby using end-to-end planningsystems and processes4.

can increase the quality of service by 30%

Integrated Digital Supply Chain decreases inventory costs by 20%

Digital Service Function decreases labor call handling costs by 40%

Banking

Insurance

Utilities

Pharmaceuticals

Retail

High Technology

Transformation Management Intensity

Digi

tal I

nten

sity

Fashionistas Digirati

Beginners Conservatives

Packaged GoodsConsumer

Manufacturing

TelecomTraveland Hospitality

Digital intensity measures how advanced digital initiatives are within an organization.

Transformation management intensity measures senior executives’ capability to drive change throughout the organization.

Only12% of manufacturing companies are digirati,companies that fully leverage digital technology.