The supply chain function is an area crying out for a digital platform or utility. In fact, I believe it’s ripe for digital disruption. Digital technologies such as automation, advanced analytics, AI, cloud and the IoT can make a huge contribution to rationalizing and managing the supply chain for companies in the North American market and globally, so it’s a prime candidate for transformation. Companies such as Amazon and Walmart are building logistics and supply chain digital platforms for themselves, but they seek to shape the space and disadvantage other companies. So, several vendors are pushing to provide supply chain platforms. It’s clear that especially Accenture and Genpact, also believe in the coming disruption, as they are making very big plays to compete against Amazon in the supply chain space.
Building a platform is a big lever to pull, but it’s difficult to do. To compete with what Amazon and other large companies are putting in place requires persistent specialized expertise, significant investment in digital technologies and a staggering volume of goods moving daily.
Given the depth of talent, technology and scope of supplies necessary for such a utility or platform, I believe we’ll see only a few in the market. Therefore, it’s a natural place for a multi-tenant supply chain platform or utility to emerge. The race is on, as even multinational companies won’t be able to put the expertise and investment against the supply chain after Amazon transforms the industry.
Read more in my Forbes blog: https://www.forbes.com/sites/peterbendorsamuel/2018/07/19/accenture-and-genpact-making-big-plays-in-supply-chain-digital-transformation/#623bf2486507