Seeking a competitive edge in today’s global marketplace? Organizations can use digital transformation in their supply chains to elevate efficiency, boost quality, and enhance customer service.
In terms of manual processes and paper-based processes, they can be automated through digital forms. Within the next 5-10 years, supply chains are set to undergo a huge transformation.
Currently, supply chains, in addition to marketing, product development, distribution, and customer service, are mostly separate and distinct.
With the fast-moving digitization of supply chains, they will increase efficiency in the development of new economic models and revenue streams. Yet providing digital transformation services for supply chain management can be a complex undertaking.
Digital supply chains
When it comes to digitizing supply chain management, there are plenty of tools that can help make it easier and more efficient.
The main purpose of digitizing the supply chain is to unlock greater productivity and profitability. It also allows organizations to move resources, people, and assets to where they are needed at any moment, cutting down on costs by anticipating risks related to transportation and manufacturing.
Let’s look closer at the 6 core roles that digital transformation has in supply chain management.
One: Demand-driven supply chains. By utilizing digital systems, it enables supply chain management to be more demand driven. Companies capable of carrying out digital transformation services will use real-time sales data from technology to adjust supply chains to meet demand.
Two: A proactive approach. One of the biggest advantages is the ability to think ahead when it comes to an organization’s performance and efficiency and developing ways of improvement.
Three: lessen stockouts. In order for businesses to have the right mix of products while attracting more customers, they have to optimize lead times and their response to consumer demands. If not, they’re going to continue eating away at potential profits.
Four: data visualization. A huge amount of data can be accessed and utilized on a daily basis. In response, companies are finding it harder and harder to handle the amount of data and organize it in a way that is meaningful. Data visualization can connect various departments’ data and help to structure it in a way that can pinpoint areas of improvement.
Five: enhanced cost management. When you invest in the digitalization of supply chain management processes, it has the advantage of reducing the amount of capital investment required for supply chains to move faster.
Six: boost client satisfaction. Underpinning the survival of any business is client satisfaction. As such, an organization ought to serve its customers with digital supply chains so that changes can be made quickly, leaving customers happier with quicker delivery.
The digitalization of the supply chain includes the use of big data, robotics, the use of sensors, and IoT technologies. With that in mind, we can now take a look at some of these current trends.
IoT technologies. The internet of things makes it possible to highlight and track products in stores as well as warehouses, which can monitor delivery performance as well as regulate facility temperature and humidity levels. A clear example of this is GPS, which is used to monitor inventory and analyze it, as well as cargo and vehicles.
Robotics. In order to reduce the time it takes to get goods from one location to another, robotics are used in the retail and logistics industries. Many people call them inventory robots as they work in warehouses. They tend to take inventory from the shelf and repackage it or move it around. And now, deliveries are beginning to be carried out by drones and driverless cars.
Blockchain. Associated with cryptos, blockchain is a useful tool for securely transferring paper documents and digital documents. Freight documents can generate every step of the supply chain. Because each transaction records its own block, a complete history of all transactions can be traced back to a single point in time.
Cloud framework. As multiple areas of the economy embrace more effective solutions, investment in cloud computing is reaching a peak. Solutions such as cloud-based infrastructures and cloud-based systems are being integrated into supply chain management platforms like hot cakes.
Advanced data & analytics. There is so much insight that is generated through supply chains from inventory planning through sales and manufacturing. And the majority of the time, the info that is gathered is used in the decision-making process – like sales forecasting, operational optimization, and inventory control.