Deloitte Unveils Digital Capabilities Model for Supply Networks

Deloitte and the Association for Supply Chain Management (ASCM) today announced the first release of the Digital Capabilities Model (DCM) for Supply Networks, designed to help transform supply chain management for today's increasingly interconnected and digital world. Compatible with the Supply Chain Operations Reference (SCOR) Digital Standard, this new model helps companies advance their capabilities from traditional linear supply chains to digital supply networks, the dynamic, interconnected systems that simultaneously plan, execute and enable digital supply "chains".

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

Seventy-six percent of respondents to a recent Deloitte survey said developing digital and analytics capabilities was the most or very important to delivering the overall supply chain strategy. However, 56% of survey respondents spend $5 million or less on digital and analytics capabilities annually, demonstrating a need for more strategic investment.

DCM is 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. For companies that have adopted SCOR, each DCM capability is mapped to relevant elements in the SCOR Digital Standard. This compatibility 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," said ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE. "The Digital Capabilities Model for Supply Networks extends SCOR to the digital era, providing businesses with guidance that will carry them into future decades. We are proud to collaborate with Deloitte to develop this next-generation, industry-leading supply chain standard."

Together 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 will help practitioners understand how their organization's 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 throughout their organization across various lines of business. 

The Digital Capabilities Model for Supply Networks will continue to evolve over time. It will 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. By responding rapidly and effectively to the latest technological advances, supply chain practitioners and business leaders can work toward creating a competitive edge in increasingly competitive marketplaces.