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Stefan Schrauf, Global Supply Chain and EMEA Operations Lead at PricewaterhouseCoopers (PwC), takes us through his operations transformation journey.
Written by Anna McMahon • Produced by Jennifer Davies
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Stefan Schrauf is leading PwC’s operations transformation in EMEA, employing a number of key technologies in order to drive supply chain excellence. tefan tells us more; “Supply chains are changing from functional, sequential logic into more orchestration logic, so the technologies that we are now looking for enable collaboration and the free flow of information across the value chain. This means companies are starting to build their own unique data network that connects to the customer through distribution, manufacturing and suppliers end-to-end. On top of this data network, companies are choosing more cloudbased technologies with systems of differentiation, such as technologies around planning tools, technologies around transparency and traceability, and technologies around advanced analytics 4
and improved decision making. These are the key technologies on which supply chain leaders are focusing.” To develop a true ecosystem, Stefan says that companies must overcome two challenges; the first involves integration with the legacy system whilst the second is all about external integration. Stefan explains, “Connecting the different data cycles with each other into the data network is challenging. The traditional systems need to connect with the new cloud-based systems. The importance of integration is to ensure that everything in control of the company is connected and integrated. Then there is the integration externally. How do I connect to the data points from customers, as
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well as all the external data surrounding my products and services? How am I able to integrate this into my supply chain decision making? How do I integrate the data from my suppliers? These are the areas in which companies are asking themselves how to effectively and efficiently integrate.” Externally, companies are looking more towards cloud-based connectivity, with a connection to the cloud that already has the preconfigured standard connections linked to the providers. Stefan does not dismiss the hype around blockchain technologies. He says, “What we are seeing is that in addition to providing more transparency, companies are already interacting in a secure partner environment dealing with known entities. Many of the cloud-based software providers have already integrated blockchain into their architecture, so I think blockchain is not the answer to every problem, but companies have already embedded it into their solution.” On the question of what makes a digital champion,
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Stefan says there are a number of aspects to consider. He continues, “Firstly, you must ask how 1+1 creates superior value. When you start connecting your customer interaction models with future business models and efficient operations, we see that the companies that take a holistic view are developing a value proposition that allows them in an effective way to connect new customers, new customer experience and new business model with a more integrated operations. When they think about operations, they are thinking about the entire value chain; not just supply chain, but life cycle management, the manufacturing process, sustainability, local to local supply chain flows, and how to distribute in an omnichannel environment. To do this, they are not just looking at the use cases, but they are also looking at the technology and the people in the organisation. So, to make it a true transformation, as opposed to a series of pilots, it is about the enhancement of the customer interactions and the business model, the digitalisation of the operations function, the
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technology stake, as well as the people and the training aspect.” What should a digital transformation roadmap look like? According to Stefan, it largely depends on the starting position of the company.
“Coupa Software and other procurement platforms come into play to manage the ordering and delivering process in a more standardised way, with a software as a service mentality” He answers, “You have companies that are at the beginning of the digital transformation journey. For them, it is important to ensure the right mobilisation, the right business case and the right prioritisation over where you start digitalising, also taking into account the proof points, pilots and testimonials. For the companies that have started 9
their journey and have already digitalised part of their agenda, they are focusing on accelerating the technology enhancement and technology stack, transitioning to a new cloudbased IT architecture, as well as looking at large scale deployment. They will have had some success stories, but they have not scaled it to every corner of the company and all regions, so deployment scaling is the big priority for the companies that are in the more mature stages. Once scaled, companies can look further at how they can innovate and collaborate with partners to drive innovation in all areas of the chain.”
“Before coronavirus, there were still people questioning if an ecommerce business model would ever come to their industry. Those discussions have all stopped because it is now reality”
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Digital transformation is dynamic, continuous improvement and innovation, so it needs to be embedded and part of the new company DNA. With this in mind, what are the typical challenges of a digital transformation? Stefan believes that technology is actually the smallest obstacle companies face. He explains, “Provided that the technology is working and the digital use cases are successfully brought to scale, the biggest challenge lies in the resources, commitment of the management team and securing the funds. Being able to change people’s ways of working and
getting their acceptance is key. Successful companies have ensured the digital upskilling of their organisation, as well as the digital and cultural upskilling of the people, with training programmes and digital fitness apps, to bring it to scale.” The Covid-19 pandemic has been a huge accelerator of digital transformation. Stefan says, “Before coronavirus, there were still people questioning if an ecommerce business model would ever come to their industry. Those discussions have all stopped because it is now reality. We also saw that people
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“Dassault Systèmes have workflows that allow flexible connectivity between the two companies that is unique to them” Stefan Schrauf, Global Supply Chain and EMEA Operations Lead
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do not need to sit together in the same room to do something meaningful, so collaboration with tools and technologies and the systems of the future can connect across boundaries of companies. Supply chain has had a revival insofar as those companies that had an integrated supply chain model were better at ramping up and down and were able to take full advantage of the market opportunities. Those companies that were static and not very flexible were less successful, so companies are moving towards a more agile approach. Connectivity does not mean centralisation. You can be efficient in a decentralised or regional structure. In the past, you tried to manage excellent through centralisation, but that has now changed.” Collaboration is crucial for Stefan and his team, working with a number of key partners to accelerate their operations transformation including Coupa Software and Dassault Systèmes. On a final note, Stefan says, “Collaboration is so important. Coupa Software and Dassault Systèmes are both cloud-based systems. They help companies to connect workflows between different entities and different companies. When you think about product development, a product sold in the market is engineered by different engineering departments including the suppliers. You would 14
“Connectivity does not mean centralisation. You can be efficient in a decentralised or regional structure. In the past, you tried to manage excellent through centralisation, but that has now changed” do a much better job if you can integrate design data and quality data with a more integrated lifecycle management of the product, along with feedback on the product when it is used in the market. This collaboration around the product connects to the suppliers that make up the final product. Collaboration on the product across the supply network is therefore a key capability. Coupa Software and other procurement platforms come into play to manage the ordering and delivering process in a more standardised way, with a software as a service mentality. Both Coupa Software and Dassault Systèmes have workflows that allow flexible connectivity between the two companies that is unique to them.” For further information, visit www.pwc.com 15
www.pwc.com
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