accenture case study supply chain

Semiconductor supplier increases profit by $3M

• What Accenture Did
• People and Culture
• Value Delivered
• Related Capabilities

Adapting the supply chain for double-digit growth

How do you ensure your supply chain can adapt and scale as you grow your business? For one leading supplier to the semiconductor industry, this became a pressing question. Following a period of extremely rapid organic growth, it found its manual supply chain processes weren’t keeping pace with the needs of the business or its customers.

With customer expectations continuously rising, the company recognized it needed to shorten lead times, especially for spare parts. But in an industry where key components are often in constrained supply, doing this while staying competitive would take something different. Advanced abilities to sense and respond in real time to supply fluctuations would be essential.

The ultimate goal? To pivot to an intelligent, digitally connected supply chain – one able to meet evolving customer expectations and support the needs of a fast-growing business.

What Accenture did

Together, we transformed the spare parts planning process by using our SynOps platform to bring together the optimal combination of human + machine talent, driven by data and insights, to create an evolved, intelligent operating model. By standardizing and embedding automation into over 65 separate processes, the company has a more efficient and consistent supply chain function, with the ability to scale to meet increasing demand for their innovative products.

We helped to increase efficiency of their global freight management with a new bill audit process to confirm the accuracy of invoices from carriers and tracking last-mile logistics to ensure customer shipments were complete and on time.

People and culture

Working with Accenture the company was able to build a new mindset around supply chain management. Together, they have transformed spare parts planning to improve efficiency and consistency of processes.

Thanks to the embedding of intelligent operations, including automating 75% of the repetitive spare planning processes, the company's workforce can refocus on critical activities - creating innovative products and serving customers - sure in the knowledge that its supply chain can keep pace with its ambitious growth agenda.

Value delivered

The move to a new operating model has boosted the on-time fill rates of the company's spare parts supply chain and increased saving by preventing the payment of incorrect invoices. A new forecasting model in spare parts planning and field services upgrades has made demand planning more predictable, while a more effective safety stock policy has mitigated the risk of stockouts. Overall, the company has seen a substantial increase in the efficiency of its planning and global transportation management, as well as a significant uplift in workforce performance and automation:

Benefit to bottom line through automation of processes.

In savings from improvements in invoice accuracy.

Spare parts supply chain processes automated, leaving teams able to refocus on driving growth.

Related capabilities

Supply chain bps, business process services, supply chain and operations.

• Avantida Container Management
• Carrier Marketplace Ordering Portal
• e2open Carrier Portal
• e2open Customer Support
• e2open Logistics Network
• e2open Network – Production
• e2open Network – Test Environment
• e2open Partner Portal
• INTTRA Portal
• Mye2open Customer Portal

Designing a connected supply chain: Accenture + e2open

Reshaping supply chain management – Accenture + e2open

There’s no going back to how supply chains used to operate. Ever-evolving levels of uncertainty have made it challenging to manage a complex, multi-tier, multi-enterprise supply chain. But creating a connected supply chain and harnessing data in new ways – like generative Artificial Intelligence (AI) – is helping to solve for uncertainty and beyond. In this video, industry leaders Accenture and e2open discuss the future of supply chain and how companies can succeed in such a volatile environment.

Subscribe to Receive e2open Updates

Interested in learning more? Stay current with the latest e2open news – from company updates to thought-leadership pieces, and so much more!

Complete this form to subscribe to e2open updates.

Let's get started..

Accenture: digital transformation of freight and logistics

Industry 4.0 - one of the biggest disruptors to traditional freight and logistics, is transforming the way in which the industry continues to do business.

In a recent research study, Accenture highlights the importance of traditional freight and logistics companies joining new digital entrants on their disruptive journey, or face becoming irrelevant.

“If they persist with ‘business as usual’, traditional players can expect to lose both competitiveness and value. If, however, they harness the power of digital technologies and build new, digital business models, they could significantly enhance their competitiveness, boosting earnings before interest and taxes (EBITDA) by approximately 13% annually.”

As disruptors continue to impact the industry by increasing customer centric services, Accenture details eight key technologies that are particularly disruptive to the industry at various stages of maturity. 

Inside GE Appliances' new Georgia logistics center

Kuehne + Nagel and XPO Logistics agree deal

In Focus: DSV, world leaders in transportation and logistics

Read the latest issue of Supply Chain Digital here

Organisations looking to improve shipment visibility and increase trust within the sale and movement of international cargo, blockchain technology provides secure data distribution and validation technology to achieve this. 

Augmented reality

Augmented reality - Accenture predicts this technology to revolutionise the picking, packing and commissioning processes in warehouses and cross docking areas, to provide a competitive advantage.

Accenture predicts that robotics process automation (RPA) will increase automation levels to almost 100% in the transport planning and customer invoicing processes.

Eliminating dependency on the human factor, autonomous logistics will revolutionise the distribution of goods from A to B. 

Digital platforms

Digital platforms are predicted to change the revenue mix, enabling clarity along the supply chain to drive optimisation of other business areas. 

Big Data analytics

Big Data analytics provides an entire ecosystem of information that will enable 3PLs to drive greater efficiencies within organisations, increasing efficient use of assets.

SaaS core solutions

Many traditional organisations within the industry have bespoke legacy applications at their core. To drive operational agility within business operations standardised and easy to deploy solutions are replacing the traditional solutions. 

3D printing

3D printing within logistics and freight is predicted to boost decentralisation of finished goods production. Which as a result will change today’s transport volume and allow integration of additional value chain activities. As a result the product portfolio will extend.

For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital magazine .

Follow us on LinkedIn and Twitter .

• DB Schenker’s bid to Drive Forward Fully-Electric Trucks Sustainability
• GlobalData: Supply Chain Pressure Emerges as Global Concern Supply Chain Risk Management
• Why Logistics Giant DP World is Betting big on Romania Logistics
• Top 10: Supply Chain Innovations Technology

Featured Articles

P&SC LIVE New York welcomes Dean Ocampo, ServiceNow

Dean Ocampo, Director of Products, Finance and Supply Chain at ServiceNow to speak at Procurement & Supply Chain LIVE New York …

P&SC LIVE London Welcomes New Sponsor – LeanLinking

Procurement & Supply Chain LIVE London welcomes Leanlinking as the latest sponsor of the fastest-growing event in London …

Procurement & Supply Chain LIVE Dubai is LIVE!

The ultimate virtual event for procurement & supply chain leaders in the Middle East and Africa, Procurement & Supply Chain LIVE Dubai returns in 2024 …

One Day to Go - Procurement & Supply Chain LIVE Dubai

Blue Yonder Thriving in Supply Chain Fulfilment

The Global P&SC Awards - Submissions Deadline Extended

• One Week to Go: Procurement & Supply Chain LIVE Dubai
• Three Sponsors Join Procurement & Supply Chain LIVE London
• P&SC LIVE New York: One Month to Go!
• Telescope International joins P&SC LIVE Dubai as a Sponsor
• P&SC LIVE New York: Don Perigny, Supply Chain Director

May 22, 2022

Supply Chain Disruptions Could Cost European Economies Up to €920 Billion in GDP by 2023, According to Accenture Report

Overcoming the challenges will require a supply chain reinvention as a new economic order takes shape

DAVOS, Switzerland; May 22, 2022 – Supply chain challenges arising from the COVID-19 pandemic and Russia’s invasion of Ukraine could result in a potential €920 billion cumulative loss to gross domestic product (GDP) across the Eurozone by 2023, according to a report released today by Accenture (NYSE: ACN). The potential loss equates to 7.7% of the Eurozone GDP in 2023.

Published at the World Economic Forum’s Annual Meeting in Davos, the report, “ From Disruption to Reinvention – The future of supply chains in Europe ,” explores three possible scenarios for how the war could play out over the coming year, modelling the impact of each scenario on the Eurozone region in terms of costs and timelines for recovery. Supply chain disruption related to COVID-19 cost Eurozone economies €112.7 billion in lost GDP in 2021, according to the report. Before the war, the lack of material supplies, breakdowns in logistics and inflationary pressures were already undermining the economic rebound in Europe, with resurging demand and precautionary hoarding overwhelming supply chains. Russia’s invasion of Ukraine has aggravated the situation. For instance, the semiconductor shortfall, which was expected to resolve in the second half of 2022, is now anticipated to persist into 2023. A protracted war could lead to a further loss to GDP of up to €318 billion in 2022 and €602 billion in 2023, while inflation could be as high as 7.8% in 2022 before declining in 2023. “Although expert consensus is that Europe will avoid recession this year, the combination of COVID-19 and the war in Ukraine has the potential to significantly impact Europe’s economy, causing a material deceleration in growth,” said Jean-Marc Ollagnier , CEO of Accenture in Europe. “While before the war some kind of supply chain normalization was expected in the second half of 2022, we now don’t expect this to happen before 2023, perhaps not even until 2024, depending on how the war evolves.” Solving supply chain issues will be critical to European competitiveness and growth. According to the report, up to 30% of total Eurozone value-added relies on functioning cross-border supply chains, either as a source of input or as a destination for production. Reinventing supply chains in a new economic order The report suggests that a reinvention of supply chains is required to address a paradigm shift — supply chains were designed mainly to optimize costs, while in today’s world, they must also be more resilient and agile to respond to increasing supply uncertainties, while becoming a key competitive advantage to enable future growth. A focus on three key areas is highlighted:

• Resilience : Supply chains must be able to absorb, adapt to and recover from disruptions whenever and wherever they occur. Improved dynamic visibility, risk identification, and mitigation solutions will enable companies to respond to sudden supply chain changes. Scenario planning and risk and opportunity analyses will help them adapt to evolving supply and demand. Network modeling and simulation, stress tests, strategic buffer sizing, and multi-sourcing options will allow organizations to manage uncertainties.
• Relevance : Supply chains will need to be customer-centric and agile so they can quickly and cost-effectively adapt to changes in demand. Capturing new data sets, including real-time data, from inside and outside the organization and across the value chain will be critical. Automation and artificial intelligence will allow organizations to identify new data patterns rapidly to better inform decision-making. Moving from centralized, linear models of supply to decentralized networks that use on-demand production, and in some instances, bringing production closer to the point of sale, can help organizations better meet customer expectations for order fulfilment.
• Sustainability : Modern supply chains need to support, if not accelerate, organizations’ sustainability agendas. To gain the trust of stakeholders, organizations must make their value chains transparent; one way to do this is through blockchain or similar technology.​ A shift from linear processes to closed-loop, circular processes that minimize waste will also be key.

“ Visibility across the supply networks, including tier 2 and tier 3 suppliers is critical,” said Kris Timmermans , who leads Accenture’s Supply Chain & Operations practice. “Companies must move from a just-in-time to a just-in-case approach, diversifying supply bases, planning alternative freight routes, making distribution centers flexible and building inventory. It comes at a price, but it is an ‘insurance policy’ against future shocks. The key is investing in new technologies to better use data — from digital twins and analytics to supply chain control towers — across the Cloud Continuum , which provides vast computing power in a cost-effective, flexible and sustainable way.” The report also highlights two more profound and longer-term challenges resulting from the pandemic and the war: energy security, as European economies need to address their heavy reliance on oil and gas supplies while accelerating their net-zero agenda; and talent mismatches, as a result of aging populations, evolving employee expectations, and changes in demand for skills. Michael Brueckner , chief strategy officer for Accenture in Europe, said, “The war in Ukraine will have a significant impact, increasing the amount and duration of disruptions. The severity will depend on how the war evolves, but nothing short of reinvention is required, as a new economic order takes shape amid an inflationary environment, increased regionalization, the energy transition, and a tight talent market. Improving energy efficiency and speeding up the transition to green energy sources will be critical to achieving security. And the ability to attract, retain, reskill and upskill people is becoming one of the most pressing issues this decade.” Download the full report here: From Disruption to Reinvention – The future of supply chains in Europe, Accenture About the research Accenture’s “From Disruption to Reinvention – The future of supply chain in Europe,” report is based on research conducted in collaboration with Oxford Economics. The analysis covers the Eurozone, which consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The report explores three possible scenarios for how the war could play out over the coming year, modelling the impact of each scenario on major European economies. In the first scenario, sanctions against Russia do not escalate and could even be scaled back, alleviating supply chain disruptions. Unfortunately, this controlled impact scenario has elapsed. In the second scenario, which is the current baseline, commodity supply remains volatile throughout 2022, which would see commodity prices continue to rise. In this case, people would cut back on non-essentials and businesses would prioritize efficiency. In the third, and worst-case, scenario, the war extends into 2023, which could see a wider oil and gas embargo on Russia, leading to major supply chain disruption, inflation hitting 7.8% in 2022, and low consumer confidence. About Accenture Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Technology and Operations services and Accenture Song — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 699,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at accenture.com . # # # Contacts: Francois Luu Accenture +33 1 53 23 68 55 [email protected] Andy Rowlands Accenture +44 7952 594784 [email protected]