In a world fraught with economic , political and social uncertainty from tariffs to trade , regime changes and civil unrest to an increasing social influence on markets , businesses must reinvent themselves to stay competitive and survive . These pressures and those brought forth by the digital economy is turning industries upside down . Companies are relying heavily on the formation of highly agile supply chains to quickly capitalize on new opportunities and to break down old barriers .

Companies of all kinds are moving into industry sectors and markets previously shut off to them and competing for market share in completely new ways .

The days of mass production are yielding to customer expectations for mass customization as companies move away from a wholesale model to a more customer centric approach . Intelligence in the supply chain with smart products that can sense consumption and predict replacement needs are becoming the norm and customers are making purchase decisions based on an entirely new basis . Companies are expected to tailor their products to the unique needs of their customers in a highly variable configuration and fluctuating demand environment . And , on top of that , they expect this to be done at low cost , with the highest measure of quality , delivered in record time !

A few years ago , in a meeting at Nike , I was witness to the marketing team announcing their intent to provide a uniquely designed shoe for every consumer . The supply chain , design and manufacturing representatives were looking uncomfortable to say the least . How could they support such a seemingly crazy idea ? Yet , they did it by creatively redefining and digitizing their supply chain processes from initial design definition to manufacturing and logistics . By taking advantage of this , my son , who is an aspiring MLB player now wears fully customized cleats bought for a mere 15 % premium and delivered within a two-week window – an amazing “ feet ”.

At SAP , we are helping our customers adapt to the ever-increasing demands of the digital economy by connecting their processes digitally across the entire supply chain . This enables a digital supply chain that transitions their go to market approach from cost savings and efficiency to a strategy that drives competitiveness and differentiation . We call this initiative Connect Digitally to Perfect Reality and while the subject touches on so many aspects of a company ’ s business , it ultimately gives the customer the perfect reality of their requirements – the perfect baseball cleats .

Robert Merlo VP Marketing SAP Digital Supply Chain