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1、In association with IBM Institute for Business Value|Research InsightsRedesigning brand valuesPurpose and profit converge in core operations2IBM researchers and consultants create innovative solutions that help consumer products companies become more consumer-centric by delivering compelling brand e
2、xperiences,collaborating more effectively with channel partners,and aligning demand and supply.For more information,please visit: a comprehensive portfolio of retail solutions for merchandising,supply chain management,omnichannel retailing,and advanced analytics,IBM helps deliver rapid time to value
3、.With global capabilities that span 170 countries,we help retailers anticipate change and profit from new opportunities.For more information,please visit: put your sustainability goals into action,you need a strategy and solutions that are specific to your needs.Make informed decisions by making the
4、 most of your data.Connect your strategy with day-to-day operations to embed sustainability into your business transformation.For more information,please visit: IBM can help1Finally.The strategic alignment of sustainability and operations.Organizations in the consumer industry have made a significan
5、t pivot to align their sustainability goals and operational objectives,according to our latest research.As they redesign their supply chain and manufacturing operations following the massive pandemic-driven disruptions,sustainability is no longer a standalone priority.Instead,executives are seizing
6、this moment to integrate it into core operations.This shift is putting organizations on the fast track to the radical reinvention needed to achieve the quadruple bottom line:protecting people,planet,profit,and purpose.The need for this change?Its immediate.Progress reports on greenhouse gas(GHG)redu
7、ction initiatives are alarming,calling for“urgent system-wide transformation”across all industries to avoid a climate disaster.1 Consumer products executives play an essential role in the fight against rising GHG emissions,with the World Economic Forum estimating that the industry produces more than
8、 one-third of global GHG totals.2Closer to home,consumer products companies are also being held accountable by their investors and an emerging group of purpose-driven consumerssavvy shoppers who are increasingly aware of the environmental and social impact of their purchases.3 From design to disposa
9、l,these activists are pushing the industry to factor in sustainability.Sustainability is no longer a standalone priority.Executives are integrating it into core operations.2To understand how leaders in the consumer industry balance emerging and urgent sustainability objectives with ongoing operation
10、al goals,the IBM Institute for Business Value(IBV)and the Consumer Goods Forum(CGF)surveyed more than 1,800 industry executives across 23 countries(see Study methodology on page 26 for more details).We found:Leaders no longer view sustainability and operations as separate initiatives.Instead,three o
11、ut of five say they are purposefully aligning sustainability and operations goals to optimize investments and efforts to achieve objectives in both areas(see Figure 1).Almost 75%of leaders agree they need to recalibrate how they measure and report on their sustainability targets,but they dont have t
12、he capabilities to monitor and measure progress in real time.So,they are turning to technology to help them deliver on the promise of operationalizing sustainability.They estimate technology budgets will grow by 34%over the next three years.FIGURE 1 Most organizations are aligning operations and sus
13、tainability objectives.36%Mostly alignedSomewhat aligned44%17%Completely aligned61%Not alignedalignedQ.How aligned are your organizations operations and sustainability objectives?3Accelerating growth with sustainability77%of executives agree that sustainability investments will accelerate business g
14、rowth.FIGURE 2 Advancing sustainability enters consumer industry executives list of top 5 priorities.75%Raise product quality71%Improve productivity63%Increase growth56%Accelerate innovation51%Advance environmental sustainability29%Reduce costs27%Expand ecosystem partnerships26%Ensure compliance23%O
15、perationalize security(data,cyber)20%Attract talentQ.Which of these are most critical to how you define success for your organization over the next three years?Consumer industry executives have always juggled competing priorities as they face pressure from a growing list of regulatory,financial,and
16、consumer demands.A year into the pandemic,IBV research found organizations were focused on reducing operational costs,but today,executives are moving forward with a fresh mindset.4 They are committed to improving product quality,customer experiences,productivity,innovation,and growth,while still con
17、tending with an evolving set of concerns that includes regulations,supply chain disruptions,new competitors,and inflation.And now on their agenda as a top five priority:advancing sustainability(see Figure 2).Leaders recognize the value sustainability brings to their brands,with 77%agreeing that sust
18、ainability investments will accelerate business growth.How?We believe brands can use sustainability to differentiate products and services in a crowded marketplace.In recent IBV research,roughly four in five consumers represent a purpose-driven approach to shopping.5 From the food they eat,to the cl
19、othes they wear,to the health,beauty,and cleaning products they use,consumers want to know more about where products are made,whether the materials are sustainably sourced,and the environmental effects of production and packaging.As shoppers evaluate purchases,a brands sustainability could be the de
20、ciding factor.The industry is recognizing that sustainability has become not just an imperative for the planet,but also an opportunity for business.34Pursuing these opportunities requires that sustainability become part of a companys fiber,woven throughout the organization.This is,in fact,the case a
21、s most business leaders say they have set sustainability goals across their enterprises(see Figure 3).Manufacturing and supply chain logistics,as well as brand strategy,are more attainablewhile engaging ecosystem partners remains a challenge.Within these business areas,organizations take a more holi
22、stic view to aligning sustainability and operational strategies.They position themselves for success as well,extending the integration into their KPIs,with 75%of executives saying their sustainability goals are linked to performance metrics.FIGURE 3 Most organizations have embedded sustainability go
23、als across enterprise operations.Q.To what extent has your organization established sustainability goals in these areas?Sales and marketingEcosystem engagementDigital transformation and ITSupply chain operations including logistics and distributionDemand and supply chain planningManufacturingProcure
24、ment and sourcingBrand strategyProduct innovation/design/developmentModerate extentLarge/significant extent84%80%80%76%76%75%75%75%68%5This newfound alignment is informing their priority initiatives for product design,development,and manufacturing and for supply chain operations.When we asked execut
25、ives whether they viewed each initiative as exclusively for operations or exclusively for sustainability,they categorized an average of fewer than 10%as “only operational”or“only for sustainability”(see Figure 4).Sustainability and operations are indeed infusedbeginning with product design and manuf
26、acturing,extending through the supply chain and into their extended ecosystems.FIGURE 4 Few supply chain and manufacturing executives view their priority initiatives as exclusively for operations or exclusively for sustainability.12%6%11%9%9%7%8%7%5%10%6%6%Exclusively for sustainabilityQ.How does ea
27、ch of these initiatives achieve your organizations operational versus sustainability agenda?Exclusively for operationsReduce emissions,pollution,and waste in supply chainDevelop environmentally sustainable productsEstablish visibility across product lifecycle to minimize disruptions and increase agi
28、lityEstablish secured ecosystems to mitigate risk and increase responsivenessLocalize/regionalize manufacturing footprintRedesign supply chain network6Sustainability begins with product designConsumer industry leaders know that environmental effects occur throughout the design,development,manufactur
29、ing,and distribution processes,with an estimated 80%of a products environmental impact originating in design decisions(see case study,“UK fashion consortium targets product lifecycle transparency”).6 With almost one-third of executives prioritizing the development of environmentally sustainable prod
30、ucts,they must consider sustainable product design.This practice aims to avoid the negative impacts that often emerge downstream by considering the social and environmental costs of a product across its entire lifecycle.Beauty brand LOreal Group models this behavior with its Sustainable Product Opti
31、mization Tool(SPOT),which allows research teams to measure the environmental and social impact of products and packaging.7 Similarly,companies are designing for a products end of life by implementing a circular-economy model,which promotes a continuous flow of materials through a technical cyclekeep
32、ing products and materials in circulationand a biological cyclereturning nutrients from biodegradable materials to Earth to regenerate nature.8 In this approach,brands consider product durability,repairability,modularity,recyclability,and recoverability.The circular-economy model builds resilience a
33、cross the supply chain against unexpected shortages by conserving materials while making products with longer lifespans.Outdoor garment companies North Face and Patagonia lead in this area,taking steps to preserve the natural world that its customers enjoy.North Face is revamping its largest product
34、 line,ThermoBall,to make the quilted jackets entirely from recycled materials.9 Likewise,Patagonia has set a goal of using only recycled or renewable materials in its products by 2025.107Case studyUK fashion consortium targets product lifecycle transparency11To help the UK fashion and textile indust
35、ry drive sustainability and profitability within its supply chain,a consortium is designing,developing,and piloting a data-sharing technology platform that provides trusted data for its participants to act upon.Joined by retailers such as Next and New Look,the UK Fashion&Textile Association is partn
36、ering with IBM,Tech Data,and the Future Fashion Factory to create the platform to enable real-time decision-making and effective track-and-trace capabilities in the UK fashion supply chain.Partially funded by the UK government,the initiative is leveraging emerging technologies such as blockchain,AI,
37、and sensors to digitize key processes in the supply chain.The goal is for all stakeholdersfrom microbusinesses to large retailersto input and access data for better visibility into the entire lifecycle of a fashion garment,starting with the original source of the material through to recycling.Ultima
38、tely,these new levels of insight can allow measurable and auditable actions across the supply chain,improving operational efficiency and management of compliance to the UNs Sustainable Development Goals(SDG)criteria.The puzzle has been getting the data into each participants system and then enabling
39、 interaction among all the systems.Requesting this type of information from suppliers has not historically been part of the standard process,and not all data is in a format thats simple to input.For example,the team has had to use voice,text,and photo ingestion from suppliers,and then AI helps to in
40、terpret and input it into the system.As the team refines the platform,they are looking ahead to how it can scale and how to onboard additional retailers and suppliers,while defining a charging structure that keeps the costs affordable for participants.Because of increasing regulations requiring sust
41、ainability transparency across the supply chain,the demand for expansion exists.In fact,for suppliers,such a platform can help them prove to a fresh set of customers that they source responsibly.78The manufacturing process and supply chain operations contribute substantially to a products burden on
42、the environment.One estimate suggests that the supply chain accounts for more than 90%of GHG emissions associated with providing a product or service,with many of those originating from upstream or downstream partners.12 To embed sustainability within these business areas,executives are prioritizing
43、 responsible consumption,production,sourcing,and procurement(see Figure 5).More specifically,within manufacturing,leaders are emphasizing reduced utility usage and waste.One method that helps is micro-segment customization,where products are created and tailored to consumer demands.More targeted pro
44、duct creation and manufacturing processes that match supply to demand help decrease surplus inventory and use less energy and water while also boosting profit margins.More than 60%of industry leaders agree that sustainability initiatives will fundamentally change their supply chain models.Sustainabi
45、lity continues through manufacturing and the supply chainFIGURE 5 Consumer industry organizations are prioritizing responsible consumption,production,sourcing,and procurement.Ensure responsible consumption and productionResponsibly source and procure in a sustainable wayReduce utility usage (such as
46、 water,energy)Reduce wasteAdopt a circular economyPromote sustainable agricultureProtect and restore forests and biodiversityContribute to ending hungerQ.Which of these initiatives are most important to your organizations environmental sustainability agenda over the next three years?9Nearly half(48%
47、)of respondents are focused on redesigning their supply chain network to avoid future disruptions,mitigate risks,and to become more sustainable.While the supply chain of the future is a work in progress,more than 60%of industry leaders agree that sustainability initiatives will fundamentally change
48、their supply chain models.Currently they are placing most of their attention on localization or regionalization.This includes a shift to nearshoringthe practice of partnering with suppliers and other supply chain entities that are located nearer to the companys customer base.In bringing product tran
49、sformations closer to consumers,brands can improve delivery performance,meet customer demands better,and reduce their carbon footprint.To strengthen resilience and build a more sustainable supply chain,organizations are diversifying more broadly across suppliers,transportation,and logistics provider
50、s.But managing this expanding,more complex network requires greater visibility and collaboration to have the traceability and transparency required for tracking sustainability targets and minimizing disruptions.Companies need to establish real-time communication and automated information sharing acr
51、oss the ecosystem,helping create an unobstructed sightline across the end-to-end supply chain for nearly instant insights into both operational performance and environmental impacts(see case study,“IBM builds the worlds first cognitive supply chain”).10IBM builds the worlds first cognitive supply ch
52、ain13Case studyWith staff in 40 countries responsible for hundreds of thousands of customer deliveries and service calls in more than 170 nations,IBMs supply chain posed a significant transformation challenge.Running on legacy systems spread across organizational silos,information sharing was slow a
53、nd incomplete.In re-thinking business processes,leaders recognized they should leverage the same modern technologies that IBM was presenting to its clients.The supply chain management team set a bold vision:becoming the worlds first cognitive supply chain.The goal was to leverage data and AI to lowe
54、r costs,exceed customer expectations,eliminate non-value-add work,and improve the experience of supply chain colleagues.Following extensive workshops using Design Thinking methods,the team rolled out a solution built around sense-and-respond capabilities.A cognitive control tower democratizes data a
55、nd automates and augments decisions while enabling real-time visibility and transparency across the supply chain.Natural language queries and responses accelerate decision-making and offer options to correct issues.An integrated stack of edge technology solutions connects data end-to-end across the
56、supply chain.Demand sensing pulses the market for changes in demand and predicts the future.With this real-time single view of the truth,employees have immediate access to the information they need to mitigate disruptions.Since the cognitive supply chain became operational,IBM has saved$160 million
57、related to reduced inventory costs,optimized shipping costs,better decision-making,and time savings.For example,resolving parts shortages that used to take hours per part number can now be handled in minutes,even seconds.The solution delivered on agility as well,supporting platform upgrades for new
58、capabilities in weeks,not years.1011Driving sustainability across the ecosystem The consumer industry has built a complex global network to manufacture and distribute goods.Aligning sustainability metrics with these partners is critical to the success of environmental programs,as noted by two-thirds
59、 of executives.They cite several efforts underway to glean a more complete picture of their climate change initiatives.More than 50%of respondents either have or are establishing environmental impact evaluation programs with partners and suppliers.Additionally,54%are evaluating their environmental i
60、mpact with their ecosystems,and another 43%plan to do so in the next three years.But tracking material flows and carbon intensity across the industry is easier said than done.While almost half of leaders say they are creating joint sustainability metrics and dashboards with their ecosystem partners,
61、a deeper issue complicates these efforts:knowing exactly what and how to measure.Lack of alignment among multiple,evolving sustainability standards and measurement frameworks causes confusion and even distrust within the industry (see Figure 6).Companies have flexibility to selectively report on ESG
62、 measures,some choosing the ones that make them look good(known as greenwashing)while others are more genuine in their reporting.As the frameworks evolve,the Global Reporting Initiative(GRI)and Sustainability Accounting Standards Board(SASB)have emerged as the two most used globally by a range of co
63、mpanies.They provide a clear,consistent,and pragmatic approach for analyzing sustainability data,coherently reporting on chosen ESG metrics,and comparing across organizations.However,there are broader differences among requirements given the region.As an example,EU sustainability regulations are mor
64、e detailed and prescriptive,and they mandate climate reporting by law,whereas the US regulations governed by the Securities and Exchange Commission are not legislatively mandated.They ask organizations to disclose sustainability risk management to the best extent possible,keeping investors interests
65、 in mind.The scope of regulations also continues to evolve;for instance,the recent German Supply Chain Due Diligence Act requires companies to protect human rights along the supply chain.1212North AmericaLatin AmericaEuropeMiddle East/AfricaAsia PacificFIGURE 6 Multiple standards make it difficult f
66、or organizations to align with partners on sustainability reporting.Global Reporting InitiativeSustainability Accounting Standards BoardClimate Disclosure Standards BoardInternational Integrated Reporting CouncilInternational Financial Reporting StandardUnited Nations Sustainable Development GoalsCa
67、rbon Disclosure ProjectTask Force on Climate-related Financial DisclosuresEU European Financial Reporting Advisory GroupUS Securities Exchange/Climate dataQ.Which of these standards does your organization use in sustainability reporting?13Sustainability standards developers are working to harmonize
68、these varying frameworks to a common set,including the creation of the International Sustainability Standards Board(ISSB)by the International Financial Reporting Standards(IFRS).In the meantime,companies can focus on defining,measuring,and reporting key sustainability metrics as well as improving th
69、eir data collection and tracking capabilities.Seven in ten respondents agree that to meet environmental targets,they need to recalibrate how they measure and report performance to include sustainability considerationsboth internally and with business partners.These metrics need to be built in up fro
70、nt in processes.For example,procurement has historically been rewarded for driving material savings once a product is in market,but not for ensuring efficiency or sustainable sourcing from the start.Incentives need to be put in place to involve procurement in optimizing materials early in the design
71、 stage.Reporting and tracking tools are a challenge as well.While 42%of executives say they have the capability to report on their sustainability targets,only 32%can do so in real time.This hinders their ability to account for their performance and to make faster,better decisions around sustainabili
72、ty(see Figure 7).Siloed data and a fragmented set of inadequate methods make reporting difficult.Companies are mostly stuck with tedious and error-prone,primarily manual processes,exchanging spreadsheets with multiple stakeholders around the globe.Brands with in-house IT capabilities are building th
73、eir own custom systems to suit their needs,while specialized software and ESG-as-a-service solutions are emerging.Ideally,companies will be able to access multiple environmental frameworks in one place and will integrate those frameworks with standards such as the US Energy Star program or the Natio
74、nal Australian Built Environment Rating System(NABERS)for scores and ratings.FIGURE 7 Many organizations cannot measure progress against their sustainability agenda in real time.Q.Do you have reporting capabilities to measure progress on your organizations sustainability agenda?Q.Does your organizat
75、ion have real-time monitoring capabilities to measure progress on your sustainability agenda?Yes32%No68%Ability to measure progress against sustainability agenda in real timeAbility to report on progress of sustainability agendaYes42%No58%14To prepare for the transformative tracking tools expected s
76、oon,companies should start establishing their data foundation,identifying and extracting internal data from applications and systems,and streamlining it into a central landscape.These steps should also enable easier data sharing across the partner ecosystem(see case study,“Walmart builds traceabilit
77、y,transparency into food supply chain”).More than half(54%)of leaders are turning to data-sharing cloud-based platforms to reinforce ties with their supply chain partners.By collecting and categorizing supplier data in real time,these platforms synchronize the supply chain network to respond to unan
78、ticipated surges in demand or other disruptions while also providing real-time insights into how participants stack up against environmental targets.Platforms can make it easier to track third-party upstream and downstream emissionsas well as waste,energy usage,and other sustainability metrics.They
79、can offer a view into whether suppliers meet criteria for sustainable sourcing,product quality,and capacity,expediting the sourcing teams ability to choose suppliers for requests for information(RFIs),purchases,and contracts.And they facilitate closed-loop product design by encouraging ecosystem col
80、laboration to improve raw material use,increase recyclability,and reduce waste from concept to commercialization.Some organizations are finding success with integrating regulatory reporting within their finance organizations where quantification of performance lies at the core of their mission(see P
81、erspective,“Sustainability reporting and the role of finance”).This approach not only supports their internal reporting requirements,but it can extend into the ecosystem.For example,finance can coordinate and align relevant data and metrics with partners to trace the carbon footprint of an organizat
82、ions products from supplier to consumer and account for Scope 3(indirect)emissions.14More than half of leaders are turning to data-sharing cloud-based platforms to reinforce ties with their supply chain partners.15Sustainability reporting and the role of financePerspectiveFor a recent benchmarking r
83、eport,the IBV collaborated with the American Productivity and Quality Center(APQC)to survey more than 1,000 senior finance personnel on the role of finance with respect to sustainability.The results found that despite facing the complex set of regulations,finance organizations are well positioned to
84、 support sustainability reporting,with those classified as“transformational finance leaders”propelling progress toward sustainability goals.15 Examples of specific companies initiatives include:Multinational consumer products company Unilever has committed to designing 100%of its plastic packaging t
85、o be fully reusable,recyclable,or compostable by 2025.Finance has played a role in creation of a methodology and design of a tool for divisions to analyze the waste footprint of new products,designs,and formulations.16 Apparel leader Levi Strauss&Co.established a data substantiation process,where th
86、e finance team brought its expertise in processes and controls and worked with the companys sustainability and legal teams to validate social and environmental claims.This effort provided a common vocabulary that helps the company validate claims and metrics.17Case studyWalmart builds traceability,t
87、ransparency into food supply chain18When Walmart needed to address a food safety concern in the past,determining a products innocence typically took days.This resulted in wasted food.The food system is complex,given the many points within itfrom the farmers to the processors to the distributors.Each
88、 had their own way of tracking products,typically on paper or in systems that dont speak to other supply chain participants systems.Walmart could never have a full view of what was happening across the entire system.With the pioneering use of blockchain distributed ledger technology,that end-to-end
89、view is more possible and traceability time has been drastically cut to as little as seconds.Each participant can capture information about the product,including what they did to it and where its been.Linking this data together in a single food safety system enables faster,more efficient tracking of
90、 food.Even more important,the blockchain solution facilitates greater transparency into whether food was produced safely and grown sustainably.With this system of shared responsibility in place,the retailer is better able to make informed decisions about the quality,safety,and sustainability of its
91、food products to meet its customers expectations.151640%of executives say silos prevent action on their manufacturing and supply chain initiatives.17Orchestrating success with technology-driven insightTo keep operations and sustainability in tune with each other,consumer industry leaders need transp
92、arency across all operations and into the supporting ecosystems.But less than one-quarter of respondents have established visibility across the full product lifecycle or the end-to-end supply chain throughout their organizations.Siloed operations are blocking their viewnearly 40%of executives say si
93、los prevent action on their manufacturing and supply chain initiatives.And siloed operations often translate to isolated data,trapped in various internal systems across the enterprise.When merged and fed into advanced technology solutions,this stranded data can become immensely valuable,helping resh
94、ape the future of sustainable operations.Executives are moving in this direction by starting to implement data-driven technology in their organizations.From building open platforms that promote collaboration,to automating logistics to improve responsiveness,to microsegment customization of products,
95、their digital transformation initiatives are essential to executing on and measuring progress against integrated sustainability and operations strategies.Confidence in digital technologies is reflected in executives projected spending,as they plan to increase their technology budget allocation by 34
96、%in the next three years.They see a role for multiple advanced technologiesincluding automation(71%),analytics(69%),IoT(62%),AI(55%),and intelligent workflows(44%)to help them deliver differentiating business results.Executives also recognize that when used as standalone tools,these technologies don
97、t yield as much power or value.According to our analysis,90%are more likely to leverage medleys of technologies to pursue their transformation goals,with analytics as a shared refrain throughout(see Figure 8).For example,executives selected analytics,IoT,and robotic process automation(RPA)as one pop
98、ular combination.Another included intelligent workflows,analytics,and automation.They can mix and match to build innovative,performance-enhancing solutions,with a hybrid cloud architecture as the necessary foundation.18FIGURE 8 Leaders expect to use combinations of technologies to achieve success in
99、 the next 3 years,with analytics as an essential common element.Q.Technologies that will help your organization deliver desired business results over the next three years.We see organizations leveraging these technologies together in their initiatives.Across design,development,and manufacturing,71%r
100、eport they are accelerating their use of AI-enabled automation and intelligent workflows,where routine decisions are automated,giving them a new level of operational agility and efficiency.Jewelry brand Pandora serves as an example,leveraging automation across its omnichannel fulfillment workflows f
101、or more efficient order delivery.19Another 65%say they are implementing predictive and preventive maintenance programs.These leverage data analytics and AI to identify potential machine malfunctions or compliance issues and automatically schedule the specific services needed,notify operational perso
102、nnel,or even autonomously execute corrective actions.This raises the reliability of the manufacturing process and enables organizations to deliver high-quality products under ever-shorter time-to-market deadlines(see case study,“Reckitt builds factory of the future today”).As they revamp their suppl
103、y chain operations,67%of respondents cite the use of predictive and prescriptive analytics and AI-powered demand sensing(69%)to improve inventory management and eliminate excess stock.They are also applying AI-enabled workflows(70%)and are beginning to adopt the emerging technology of digital twins(
104、26%)to drive efficiencies.For instance,digital twins model supply chain operations for insight into workflow improvements and simulate the environmental impacts of decisions.The Port of Rotterdam is taking advantage of this technology to optimize its shipping lanes.The European seaport is using a di
105、gital twin of the port to determine the exact time a ship should berth,cutting the port-call time and helping companies throughout the chain reduce costs and emissions.20 AnalyticsConnected IoTRPAAnalyticsAIRPAAnalyticsCloudRPAAnalyticsAutomationAdvanced manufacturing/3-D printingAnalyticsConnected
106、IoTAutomationAnalyticsAIAutomationAnalyticsIntelligent workflowsAutomationAnalyticsConnected IoTIntelligent workflows19Case studyReckitt builds factory of the future today21Reckitt is the company behind some of the worlds most recognizable and trusted consumer brands in hygiene,health,and nutrition,
107、including Air Wick,Calgon,Dettol,Durex,Lysol,Mucinex,Nurofen,and many more.With 20 million products sold daily across more than 200 markets,Reckitt is a truly global manufacturing firm.The company has grown through mergers and acquisitions since its beginnings as a single mill in the UK in 1819,lead
108、ing to disparity in the firms manufacturing IT technology and maturity.To unify its operations and move toward a wide-scale digitization of its factories,Reckitt set out to build the“Factory of the Future,”implementing scalable solutions that bring contemporary digital technology to fruition.The com
109、pany is leveraging technology to get the right data to the people who need it,with the expectation of improving overall equipment effectiveness(OEE),factory maintenance,and energy efficiency.For example,dashboards let site managers track energy use,spot trends or anomalies,and track progress toward
110、the companys ambitious sustainability targets.The solution leverages a scalable cloud foundation plus IoT and edge technology to serve as the data backbone.A platform-based approach,with data and connectivity as the baseline for transformation and innovation,can be extended and replicated from Recki
111、tts Nottingham,England,factory to its other manufacturing facilities around the world.192021The payoffIn the 2022 IBV CEO study,consumer industry executives ranked better customer experiences as their highest priority for the near-term.22 Their initiatives to expedite design and delivery of high-qua
112、lity,sustainable products,combined with work to build a resilient,reliable,and sustainable supply chain all focus on the customer.And as purpose-driven consumers aim to align their purchases with their values,brands that embed sustainability throughout their operations can earn a greater share of co
113、nsumer spend.Continued digitalization of processes is critical to the industrys efforts,with nearly three-quarters of leaders agreeing that it significantly improves their resiliency,efficiency,and growth.Recent IBV research reinforces their view.CEOs who purposefully integrate sustainability and di
114、gital transformation through a clearly defined strategy were unlocking higher revenue growthup to 41%more than their peers.2322Action guide Organizations face a daunting endeavor.They need to stitch together data across the value chain and extrapolate environmental impacts.Then they must embed that
115、information into a sustainability strategy aligned to business outcomes and operationalize that strategy.Technology choices and ecosystem partnerships will determine their success.The following actions are intended to help advance the integration of sustainability and operations and require the C-su
116、ite to work together.01Supply chain and operations leaders should team with C-suite peers to build a new strategy that operationalizes sustainability.Infuse sustainability into the core of your organizations operational strategy instead of considering it as a separate set of initiatives.Set goals an
117、d develop a multiyear roadmap,defining what sustainability specifically means to your company and how to operationalize sustainability enterprise-wide.Review your existing supply chain network and assets to assess if you have the right capabilities to meet consumer demands while creating a zero-wast
118、e,efficient supply chain that can flex to meet rapidly changing demand.Build cognitive control tower capabilities that leverage AI to constantly assess,predict,and,most importantly,drive actions to ensure disruptions dont cause significant business and sustainability losses.Create digital twins to s
119、imulate scenarios designed to future-proof your supply chain and minimize environmental impacts.2302 Sustainability leaders should work across the organization to integrate sustainability strategies across the enterprise and ecosystem partners.Identify both short-and long-term sustainability goals.F
120、or example,start with steps to reduce energy consumption,such as leveraging programmable thermostats,or reducing waste through reusable plastic containers or a recycling program that takes back and reuses products.Longer term,work with your ecosystem to build Scope 3 emissions solutions.Rethink the
121、consortium model by bringing in selected value chain partners to assess,curate,and measure gross emissions.Build a core team across lines of business to ideate,identify,and develop clear,succinct ESG goals.Then define the right metrics to track and underpin the organizations ESG vision and mission.I
122、dentify the correct data flows,supporting platforms,and data architecture to capture the data needed for monitoring progress against sustainability goals.03 Technology executives should collaborate with manufacturing,supply chain,and sustainability leaders to create smarter operations across the val
123、ue chain.Build and leverage a data-sharing platform to trace inventory and raw material status across all business partners to enable better decisions for resilient and sustainable operations.Implement AI and automation solutions to optimize production,processes,and supply chains,and,in turn,reduce
124、carbon emissions,waste,and energy and water consumption.Evaluate and streamline your data collection processes to prepare for new ESG tracking solutions that will help monitor carbon emissions,waste,and energy and water consumption.Automate relentlessly with AI-enabled workflows to streamline produc
125、tion,re-focus employees on higher-value analytical decisions and actions,and gain the necessary level of insight to drive actions that reduce waste and address other ethical requirements.Action guide24Jon ChambersPartner and Supply Chain Transformation Leader,IBM ConsultingJon.C GuptaGlobal Sustaina
126、bility Industry Lead,Consumer Industry,IBM C leads the IBM Supply Chain Transformation Practice.With over 25 years of experience built across food,beauty,and healthcare businesses,Jon works with senior leaders to create value for companies across the consumer industry through visionary and strategic
127、 transformation programs.Ursula Heng Associate Partner,UKI Sustainability&Supply Chain,IBM ConsultingUrsula.H has more than 20 years in the fast-moving consumer goods sector leading delivery transformation of high value,complex,end-to-end programs in manufacturing,supply chain,and sustainability.She
128、 is the sustainability lead for the CPG,retail,travel and transportation,and professional services sectors,bringing her industry perspective through collaborative innovation and responsible technology to drive transformative change and to uncover what has yet to be realized.Sachin leads IBMs strateg
129、y and consulting practice around sustainability solutions for the consumer industry.Being a thought leader,he works with CXOs to inform sustainability trends,co-create viable solutions,and build business plans to transform client journeys on sustainability and ESG commitments.About the authorsDr.Mah
130、esh Dodani Industry Chief Engineer,Consumer,Travel&Transformation Industries,IBM T leads in defining use cases,architecture,design,and implementation of technologies and innovative solutions to meet clients needs for digital transformation,application modernization,and multicloud,hybrid cloud deploy
131、ments.These solutions are designed to improve customer engagement,increase revenues,and drive operational efficiencies.Jane CheungGlobal Research Leader,Consumer Industry,IBM Institute for Business V has more than 20 years of working experience across the retail and consumer products industries.Jane
132、 has worked at Macys,Disney,Nike,and Hallmark Cards and as a trusted advisor for clients in a consulting capacity.2425IBM Institute for Business ValueFor two decades,the IBM Institute for Business Value has served as the thought leadership think tank for IBM.What inspires us is producing research-ba
133、cked,technology-informed strategic insights that help leaders make smarter business decisions.From our unique position at the intersection of business,technology,and society,we survey,interview,and engage with thousands of executives,consumers,and experts each year,synthesizing their perspectives in
134、to credible,inspiring,and actionable insights.To stay connected and informed,sign up to receive IBVs email newsletter at can also follow IBMIBV on Twitter or find us on LinkedIn at https:/ibm.co/ibv-linkedin.The Consumer Goods ForumThe Consumer Goods Forum(CGF)is a global,parity-based industry netwo
135、rk that is driven by its members to encourage global adoption of practices and standards that serve the consumer goods industry worldwide.The CGF brings together the CEOs and senior management of approximately 400 retailers,manufacturers,service providers,and other stakeholders across 70 countries,a
136、nd it reflects the diversity of the industry in geography,size,product category,and format.Its member companies have combined sales of EUR 4.6 trillion and directly employ nearly 10 million people,with 90 million related jobs along the value chain.The CGF is governed by its Board of Directors,which
137、comprises more than 55 manufacturer and retailer CEOs.For more information,please visit:AcknowledgementsThe authors would like to thank David Meek,Partner and Global Leader,Manufacturing and Industry 4.0 for IBM Consulting;Rob Cushman,Senior Partner and Worldwide Leader,Supply Chain Transformation f
138、or IBM Consulting;and Mark Meister,Partner,Supply Chain Transformation for IBM Consulting,for their contributions to this report.26Study methodologyIn October and November 2022,the IBM Institute for Business Value and the Consumer Goods Forum(CGF),in collaboration with Oxford Economics,conducted a g
139、lobal survey of 1,800 industry business leaders from consumer products companies and vertical retailers with their own product design,development,and manufacturing capabilities.Our goal was to understand how their initiatives within their manufacturing and supply chain operations are supporting thei
140、r financial,operational,and sustainability goals in the next year and beyond.Respondents included executives from supply chain operations,sustainability,manufacturing,innovation/technology,and sales and marketing.They spanned all regions of the worldNorth America(22%),Latin America(6%),Europe(37%),M
141、iddle East and Africa(5%),and Asia Pacific(31%).Multiple statistical analyses were applied to the data to better understand underlying attitudes and behavior.Related reportsThe 2022 CSCO study“Own your transformation:Data-led innovation for the modern supply chain.”IBM Institute for Business Value.S
142、eptember 2022.ibm.co/c-suite-study-cscoSustainability as a transformation catalyst“Sustainability as a transformation catalyst:Trailblazers turn aspiration into action.”IBM Institute for Business Value.January 2022.ibm.co/sustainability-transformation The last call for sustainability“The last call f
143、or sustainability:An urgent growth agenda for consumer products and retail.”IBM Institute for Business Value.August 2021.ibm.co/sustainability-consumer-products-retailThe right partner for a changing worldAt IBM,we collaborate with our clients,bringing together business insight,advanced research,and
144、 technology to give them a distinct advantage in todays rapidly changing environment.About Research InsightsResearch Insights are fact-based strategic insights for business executives on critical public-and private-sector issues.They are based on findings from analysis of our own primary research st
145、udies.For more information,contact the IBM Institute for Business Value at .27Notes and sources 1“Emissions Gap Report 2022.”UN Environment Programme.October 27,2022.https:/www.unep.org/resources/emissions-gap-report-20222“Net-Zero Challenge:The supply chain opportunity.”World Economic Forum in coll
146、aboration with Boston Consulting Group.January 2021.https:/www3.weforum.org/docs/WEF_Net_Zero_Challenge_The_Supply_Chain_Opportunity_2021.pdf3“The CEO Study.Own your impact:Practical pathways to transformational sustainability.”IBM Institute for Business Value C-suite Series.May 2022.Unpublished dat
147、a;Haller,Karl,Mary Wallace,Jane Cheung,and Sachin Gupta.“Consumers want it all:Hybrid shopping,sustainability,and purpose-driven brands.”IBM Institute for Business Value.January 2022.https:/ibm.co/2022-consumer-study4 Haller,Karl,Jim Lee,and Jane Cheung.“Resetting the rules for consumer companies:Th
148、e race for post-COVID competitive advantage.”IBM Institute for Business Value.June 15,2021.Unpublished data.5 Haller,Karl,Mary Wallace,Jane Cheung,and Sachin Gupta.“Consumers want it all:Hybrid shopping,sustainability,and purpose-driven brands.”IBM Institute for Business Value.January 2022.https:/ib
149、m.co/2022-consumer-study6“Rethink:Why sustainable product design is the need of the hour.”Sogeti.Accessed January 19,2023.https:/ eco-friendly design at the heart of our business model.”LOreal Groupe.Accessed January 19,2023.https:/ butterfly diagram:visualizing the circular economy.”Ellen Macarthur
150、 Foundation.Accessed February 22,2023.https:/ellenmacarthurfoundation.org/circular-economy-diagram9 Overfelt,Maggie.“As the North Face battles Patagonia in outdoors market,it bets tackling climate change will pay off.”CNBC.August 14,2020.https:/ Bianchi,Michele.“Recycling Is Broken.Now What?”Patagon
151、ia.Accessed February 23,2023.https:/ Supply Chain Optimisation.”UK Fashion&Textile Association website.Accessed January 19,2023.https:/www.ukft.org/innovation/ssco/;“A transparent UK-led supply chain:British Textile Week 2022.”UK Fashion&Textile Association.July 2,2022.https:/www.ukft.org/ssco-keric
152、-morris-btw22/;“Sustainable Supply Chain Optimisation:Proof of Concept.”UK Fashion&Textile Association.May 12,2021.https:/www.ukft.org/ssco-proof-of-concept/;“New supply chain platform to drive sustainability,transparency,and profitability in UK fashion and textiles.”UK Fashion&Textile Association.A
153、pril 8,2021.https:/www.ukft.org/supply-chain-platform/12“Supply Chain Guidance:Information for organizations interested in reducing their supply chain emissions.”US Environmental Protection Agency.Accessed February 23,2023.https:/www.epa.gov/climateleadership/supply-chain-guidance13“IBM builds the w
154、orlds first cognitive supply chain.”IBM case study.Accessed February 23,2023.https:/ Proothi,Monica,Adam Thompson,Annette LaPrade,and Spencer Lin.“The sustainability imperative:The integral role of financequantified.”IBM Institute for Business Value.February 2023.https:/ibm.co/sustainability-initiat
155、ives-finance15 Ibid.16“Unilever:Responding to the challenge of plastics.”Accounting for Sustainability.November 28,2020.https:/www.accountingforsustainability.org/en/knowledge-hub/case-studies/unilever-plastics-case-study.html17“Levi Strauss&Co:Reporting Case Study.”Accounting for Sustainability.Jun
156、e 17,2022.https:/www.accountingforsustainability.org/en/knowledge-hub/case-studies/levi-strauss-co-reporting-case-study.html2818“Walmarts food safety solution using IBM Food Trust build on the IBM Blockchain Platform.”IBM case study video.Accessed February 23,2023.https:/ in the food supply chain Wh
157、at does the future look like?”Walmart.November 25,2021.https:/ Farre,Tom.“Jewelry customers gain a personalized digital experience:Optimizing e-commerce fulfillment with cloud-based order management.”IBM case study.Accessed February 23,2023.https:/ Boyles,Ryan.“How the Port of Rotterdam is using IBM
158、 digital twin technology to transform itself from the biggest to the smartest.”IBM blog.August 29,2019.https:/ in Focus:Allard Castelein,Port of Rotterdam.”Maritime Professional.September 14,2022.https:/ “Building the factory of the future today.”IBM case study.Accessed February 23,2023.https:/ CEO
159、Study.Own your impact:Practical pathways to transformational sustainability.”IBM Institute for Business Value C-suite Series.May 2022.Unpublished data.23“The CEO Study.Own your impact:Practical pathways to transformational sustainability.”IBM Institute for Business Value C-suite Series.May 2022.http
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