{"id":60707,"date":"2024-01-02T12:57:41","date_gmt":"2024-01-02T04:57:41","guid":{"rendered":"http:\/\/www.upgrademag.com\/web\/?p=60707"},"modified":"2024-01-02T12:57:44","modified_gmt":"2024-01-02T04:57:44","slug":"combining-regional-production-and-supply-with-digital-maturity-boosts-resiliency-accenture","status":"publish","type":"post","link":"http:\/\/www.upgrademag.com\/web\/2024\/01\/02\/combining-regional-production-and-supply-with-digital-maturity-boosts-resiliency-accenture\/","title":{"rendered":"Combining regional production and supply with digital maturity boosts resiliency &#8211; Accenture"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Companies are ramping up regional suppliers and production facilities to become less vulnerable to disruption, according to Accenture\u2019s \u201c<a href=\"https:\/\/www.accenture.com\/us-en\/insights\/industry-x\/engineering-supply-production-resiliency?c=acn_glb_reimaginingengimediarelations_13743202&amp;n=mrl_0623\" target=\"_blank\" rel=\"noreferrer noopener\">Resiliency in the making<\/a>\u201d research. By 2026,\u00a065% of companies intend to buy most key items from regional suppliers, up from 38% today. Even more\u00a0organizations (85%)\u00a0plan to produce and sell most of their products in the same region by 2026, almost doubling from 43% today.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the report, regional sourcing and production are important to becoming less vulnerable to disruption, but not enough to reach sustained resiliency. Companies must also increase their digital maturity. They need to invest in data, AI and solutions like digital twins. Having more mature capabilities in these areas helps companies build&nbsp;reconfigurable supply chains and autonomous production.&nbsp;These capabilities also enable&nbsp;dynamic, sustainable product development&nbsp;and support decentralized, real-time decision-making at the&nbsp;frontlines of operations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Disruptive events\u00a0have surged\u00a0in recent years, from\u00a0geopolitical shifts and extreme weather to technology breakthroughs and\u00a0material and talent shortages. Few\u00a0businesses sustained their\u00a0resilience and long-term growth\u00a0amid the turbulence:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In 2021 and 2022, companies missed out on $1.6 trillion in additional annual revenues because their engineering, supply, production or operations were disrupted.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>At the same time, the 25% most resilient companies achieved\u00a03.6% higher annual revenues than the 25% most vulnerable companies.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Sef Tuma, global engineering and manufacturing lead, Accenture\u00a0Industry X, said: \u201cResiliency has become an opportunity for growth, not just a strategy for survival.\u00a0Taking advantage of this opportunity requires companies to drive the digitization of\u00a0engineering, supply, production and operations processes. Solutions like\u00a0digital twins and technologies like\u00a0generative AI\u00a0can help companies adapt faster to sudden changes and take\u00a0data-driven, real-time actions.\u201d\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On average, companies are investing $1 billion in 2023 to&nbsp;digitize, automate and relocate supply and production facilities,&nbsp;which is expected to increase to at least $2.5 billion in 2026, according to the report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sunita Suryanarayan, global\u00a0supply chain and operations\u00a0resiliency lead\u00a0at Accenture, commented: \u201cWhen disruption struck, many companies quickly applied short-term fixes to their complex global production and supply networks. These networks had been designed for cost efficiency and just-in-time deliveries. Now is the time to strategically\u00a0redesign them for multi-sourcing, without creating unwieldy silos or new bottlenecks, and make them more transparent and agile with data and AI to drive sustained resiliency.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sustained resiliency is still a distant prospect for many companies. As part of the research, Accenture developed a model to measure engineering, supply, production and operations\u00a0resiliency\u00a0on a 0-100 scale. On average, companies achieved a score of only 56.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The report recommends three areas companies should focus on to increase their resiliency:<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"1\">\n<li>Visibility. Companies should make supply chains and production processes more predictable and autonomous. For example, smart end-to-end control towers monitor processes and analyze different scenarios in real time to&nbsp;detect and correct issues early on. Today,&nbsp;only 11% have&nbsp;near real-time alerting; 78% need at least a week to fully understand the&nbsp;impact.<\/li>\n<\/ol>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li>Resiliency in design.&nbsp;Moving activities earlier in the development process allows companies to get products, processes and ways of working right the first time. For example, digital twins \u2013 digital replicas of physical production facilities down to individual assembly lines and machines \u2013 allow product designers and engineers to identify and troubleshoot potential prototype issues or defects and iterate the design before production begins.<\/li>\n<\/ol>\n\n\n\n<ol class=\"wp-block-list\" start=\"3\">\n<li>New ways of working. Businesses must upskill the workforce in data, AI and other digital technologies so they can&nbsp;use predictive and visualization tools to make data-driven decisions&nbsp;at the frontlines of business. Today,&nbsp;only 17% of companies already have such a multi-skilled,&nbsp;digitally literate&nbsp;workforce; 68% plan to have one by 2026.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>By 2026,\u00a065% of companies intend to buy most key items from regional suppliers, up from 38% today. Even more\u00a0organizations (85%)\u00a0plan to produce and sell most of their products in the same region by 2026, almost doubling from 43% today.<\/p>\n","protected":false},"author":6,"featured_media":45598,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,18],"tags":[2838,96,2727,1656],"class_list":["post-60707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-headlines","category-white-papers","tag-accenture","tag-technology","tag-technology-adaption","tag-technology-investment"],"_links":{"self":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/60707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/comments?post=60707"}],"version-history":[{"count":0,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/60707\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media\/45598"}],"wp:attachment":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media?parent=60707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/categories?post=60707"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/tags?post=60707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}