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Origins of the Bionic Supply Chain

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A short history of the term ‘bionic supply chain’ in industry. Sustainability technology finds new ways to adopt into operations. Handcrafted lightsabers in time for Halloween.

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Building the Bionic Supply Chain

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Topics: Bionic Supply Chain

Organizations: Boston Consulting Group

To capture the greatest value from their end-to-end (E2E) supply chains, companies need to adopt a bionic operating model. With the help of adaptable key performance indicators (KPIs) that focus on optimizing overall performance in any situation, a platform organization that works cross-functionally, and a data and digital platform (DDP) that enables collaboration, a bionic supply chain leverages the best of what both machines and humans have to offer.

Building a bionic supply chain requires a comprehensive digital transformation where employees as well as leaders play crucial roles. Although the size of the effort is enormous, a bionic supply chain can lead to substantial improvements in performance. It can boost revenue by 4% to 6%, customer service levels by 5 to 30 percentage points (pp), and EBITDA by 2 to 4 pp. Moreover, a bionic supply chain has the potential to reduce manufacturing, warehousing, and distribution costs by 10% to 20% and working capital by 15% to 30%. It’s also more able to react swiftly to sudden changes in demand, supply prices, trade policies, and so on—perhaps the most important consideration of all in the current business environment.

Read more at BCG Publications