On Thursday, Chuck Conley, Jabil's Director of Product Marketing for Digital Supply Chain Solutions, presented at the Consumer Electronics Show 2017, discussing the benefits digital supply chains offer such as reducing risk, increasing visibility, enhancing collaboration and producing actionable analytics. Chuck stressed the importance of bringing together the right combination of people, process and technology to deliver tangible business outcomes.
Supply chain management is constantly adapting to a digital economy that requires unprecedented speed to market and presents new challenges such as falling barriers to entry, changing consumer expectations and compressed product lifecycles. A digital supply chain provides business agility and rapidly accelerates response to both customer and market demands.
Chuck also discussed how reducing cost while increasing value plays a key role. Trends such as the cloud and automation have enabled new efficiency gains and contributed to bottom line growth. Even with these benefits, increased supply chain complexity has exposed businesses to heightened levels of risk. In order to reduce these risks, enterprises are looking to digitization.
There's nothing usual about business in today's world. Company lifespans are shrinking at an alarming rate. In 1960, the average S&P 500 company lifespan was 60 years; today, it's twelve. Companies competing in the digital age are faced with an ultimatum: Disrupt or be Disrupted.
The digital opportunity is immense in size and scope. 10 disruptive trend categories, containing a combined 100 submarkets, are expected to produce $5.5 trillion in economic impact. These disrupters will transform the way people live, work and interact in the world. While Jabil has its hand in each of these pockets, digital manufacturing provides the most promise. To capitalize on this trend, Jabil has partnered with IBM to digitize its multi-enterprise supply chain with a greater emphasis on transparency and agility.
With plants all over the world, Jabil set out to connect them all and become a globally integrated enterprise. Utilizing IBM's Watson, Jabil develops smarter supply chains that streamline global processes to maximize efficiencies. Chuck explained how Jabil accesses real-time data across the extended enterprise through IoT, sensors and edge devices. These technologies provide bigger data, which Watson can quickly decipher into powerful cognitive analytics. Jabil uses these findings to enhance supply chain visibility and make data-driven, digitally executed decisions. Moving forward, these benefits will only increase the value Jabil can provide to its customers with the intelligent digital supply chain.