Customers now expect more from their purchasing experience, and for retailers to exceed these expectations requires an agile supply value chain made possible through digital supply networks, say researchers for the Deloitte consulting firm.
Before the advent of digital technologies, fulfillment was largely an exercise in sell and replenish, they note. Today technologies such as artificial intelligence (AI), Internet of Things (IoT) sensors, and robotics have given rise to digital supply networks (DSNs).
“Organizations that are able to implement digital fulfillment activities are generally able to differentiate themselves in new, powerful ways,” the Deloitte researchers say. “These often include providing customers and supply chain partners better insights, greater agility, and a more holistic view of cost to serve.”
They claim DSNs are rapidly transforming static, linear supply chains into an interconnected ecosystem of nodes that dynamically shape the planning, production, and distribution of products.
“For every digital solution to fully reach its potential, it typically requires integration across the entire user experience. As such, fulfillment is evolving from a series of siloed functions into a synchronized activity, one that is seamless and transparent, and adjusts in real time, dependent on every facet of the organization getting it right.”
DSNs are said to allow planning functions to make split second decisions based on millions of rapid calculations, which impacts sales, warehousing and transportation management in profound ways.
Supply chain leaders increasingly recognize the need for cross-functional collaboration and integrated decision- making. A Deloitte survey showed that 45% of supply chain executives recognized a greater need to interact with outside suppliers, while 36% also cited the need for improved customer interactions.
“Eliminating silos begins with sharing digitally derived information about what is possible and optimal in terms of digital fulfillment with all relevant functions,” Deloitte says.
“This starts with agreeing on cross-organizational key performance metrics, ensuring proper integration of these metrics with all relevant stakeholders, and putting in place a governance model that reinforces behaviors and incentives aligned to the best interests of the customer and the overarching enterprise.”
Succeeding at end-to-end digital fulfillment often requires leaders to think big, start small, and begin connecting, the Deloitte researchers stress: “Think big and embrace the customer journey.”
“Customer-centricity is at the core of a digital fulfillment business model. Pave the way to a seamless consumer journey by understanding your consumers and their expectations.”
While embarking on the digital fulfillment journey, Deloitte says you should embrace change and technology disruption in the marketplace in order to design state-of-the-art fulfillment capabilities that can meet customers’ expectations and become your company’s competitive differentiator.
Start small with proof-of-concept pilots, the researchers urge. Pick priority digital fulfillment offerings, markets or cities to get started and establish a proof of concept through agile design thinking and a digital factory delivery model.
One option is to pick one of the main attributes that make up digital fulfillment (such as forecasting through the supply chain) and focus on executing in that space first. “This will help identify the trade- offs needed to support fulfillment offerings and adhere to constraints of current existing operations,” researchers add. “Avoid a total overhaul until success is measured on a small scale.”
It’s vital to connect everyone’s work, Deloitte says. Digital fulfillment requires many groups work together as integrated channels. “Supply chains become more resilient, connected and agile. Support omnichannel and cross-functional thinking: Online depends on offline, and vice versa.”
Strengthen your external network by establishing partnerships with upstream and downstream players, the researchers urge, noting that a networked, collaborative organization will outperform siloed and isolated firms. “Companies are turning to digital fulfillment solutions across the end-to-end value chain to harmonize shifting expectations with operational capabilities.”
By leveraging the latest technologies and innovations in the supply chain, companies can better plan for the needs of their customers and also predict when and where needs will manifest before the customer even places an order, Deloitte says.
“The future of fulfillment is digitally enabled and always on, bringing the customer closer to your operations than ever before.”
The full report is available from Deloitte to download at their website.
<h2>Bill Would Limit Truck Speeds</h2>
Two senators have introduced a bill that would limit heavy trucks to a 65 mph maximum speed by requiring speed governors on all new truck models.
“This legislation would officially enforce a long- awaited speed limit of 65 mph on large trucks and reduce the number of preventable fatalities on our busy roadways,” commented Sen. Johnny Isakson (R-GA), who introduced the bill along with Sen. Chris Coons (D-DE).
“The majority of trucks on our roads already have speed-limiting technology built in, and the rest of the technologically advanced world has already put them to use to ensure drivers follow safe speeds,” Isakson added.
American Trucking Associationshas advocated for adoption of a 65 mph limit for all vehicles – not just trucks – for more than a decade. An ATA spokeman said, “the national trend on speed limits has been in the opposite direction with increasing variance. Federal speed limiter efforts must, at a minimum, account for speed differentials and any potential safety risks that they can create.”
In the early days of the Trump administration, the Department of Transportation, indefinitely delayed action on a proposed truck speed limiter rule.
If the legislation is enacted, it would direct DOT to adopt rules requiring speed limiters on all new trucks heavier than 26,000 pounds, and would extend the maximum speed requirement to trucks that already have the technology. The bill would not require older trucks that are currently without the devices to be retrofitted with them.
The legislation was hailed by some trucking groups. The Truckload Carriers Association said, “Our members recognize that traveling too fast for conditions is one of the most prominent reasons for accidents on our roads today.”
Owner-Operator Independent Drivers Association opposes the bill, arguing that by creating highway speed variations between big trucks and other vehicles the end result would be to actually make highways less safe.
