Think of the evolution of navigational technology as a parallel. Initially, people used stars to guide their way, then transitioned to paper maps, and eventually to digital GPS systems and apps. Guided navigation, which factors in weather and traffic to suggest the best route, came next. The pinnacle of this evolution will be self-driving cars, which will take people where they need to go while they relax or work.

Similarly, capability maturity in the supply chain network evolves from basic, manual practices to more advanced technologies that can handle increasing workloads more efficiently. As we navigate continuous disruption, the ability to enhance capability maturity becomes crucial, especially as generative AI forces companies to rethink operations and redefine “value” in their business. Traditional benchmarks and processes are no longer sufficient; they may even hinder competitive advantage and limit opportunities.

C-suite leaders must focus on developing new capabilities aligned with their key business goals, powered by a robust digital core. This involves integrated, dynamic solutions supported by secure cloud, data, and AI technologies. These next-generation capabilities span supply chain, operations, and technology, allowing companies to continuously reinvent their networks to adapt to changes and seamlessly adopt new technologies.

However, it’s a significant challenge. Our research shows that most companies’ supply chain networks still have a long way to go before reaching next-generation maturity. Only a small fraction, about 10%, of companies we identified as “leaders” are already implementing the most advanced, technology-driven capabilities to deliver multidimensional business value.

These leaders are accelerating their investments in sophisticated capabilities, especially those enhanced by generative AI, to surpass existing best practices. In fact, they are investing in next-generation capabilities at four times the rate of other companies, positioning themselves to quickly outpace the competition. The gap between leaders and others will only widen as these capabilities drive rapid business transformation, making it imperative for all companies to act now to avoid falling behind.

The first step is to establish key enablers of greater maturity, which are essential for maximizing the potential of both existing and new technologies. These enablers include a modern, connected IT landscape, an advanced data platform, a localized sourcing and production footprint, and organizational agility.

As our research indicates, companies with more mature supply chain capabilities will be better equipped to survive and thrive in today’s dynamic environment. They will be able to anticipate and manage future challenges, becoming more agile, resilient, sustainable, and efficient through the use of AI and other emerging technologies, which are both a catalyst for change and a solution to pressing challenges.

Continue reading to explore how to reinvent your supply chain network and download our comprehensive report for actionable insights.

The Table of Contents of “Next stop, next-gen: Tap into new value with advanced supply chain capabilities” Report:

• A new context supports a new performance frontier
• Are companies ready for the next generation of supply chain capabilities?
• The case for greater maturity
• Four key enablers of higher maturity
• Accelerating transformation to keep pace

Number of Pages:

• 37 pages

Pricing: 

• Free

Methodology

Supply chain key capabilities’ framework

Accenture applied the concept of evolving maturity, and its four stages (Past, Now, Near & Next), to 29 key capabilities across seven supply chain themes (Agile design, Smart Procurement, Flexible Manufacturing and Autonomous operations, Fast Logistics, Predictive Services, Sustainability by design and Integrated supply chain) to assess how mature companies are across their supply chain networks and operations.

We surveyed a global panel of ~3,000 senior executives covering 1,000 companies spanning North America, South America, Europe, and Asia Pacific, across 10 industry sectors.

This survey generated around 134,000 data points providing an objective understanding of each company’s standing on various capabilities. Based on these responses, we developed a maturity model that combines both the level of maturity and the level of implementation (widely applied, partially deployed, deployment within 2 years, and deployment beyond 2 years) to generate a composite supply chain maturity score.

See below an example of the four different levels of maturity applied in our study:

Past

Operating with legacy technology, limited data visibility, and a high reliance on manual, human-involved tasks and decision-making.

Now

Using some digital tools to facilitate basic operational tasks and featuring partial digitalization in routine tasks.

Near

Scaling up digitization across operations, with contextualized, high-quality data integrated from various sources, eco-friendly practices, and strong ecosystem relationships.

Next

Employing generative AI and advanced machine learning for autonomous decision-making, advanced simulations and continuous improvement through data analytics and AI-driven insights.