Digitalize your Supply Chain Strategy

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Digitalize your Supply Chain Strategy

BY : Knowledge@BPW 27 May 20
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Today, the world is moving fast with growing technological developments and data-based automation solutions. No wonder, in these changing times, supply chains are getting digitalized rapidly and innovative technologies are being integrated into their everyday operations. Besides, most distributors are turning to some form of software that can provide real-time visibility over the entire supply chain as part of the relevant wider network.

1. What is digitalization?

Essentially, digitalization refers to integrating physical processes with digital data to create a fully optimized supply chain. 

2. What makes supply chain digitization necessary? 

·      As a result of globalization, the existence of supply chains is not restricted to a single country anymore, notwithstanding the Covid-19 lockdowns. Relative cost considerations often lead to long and complex supply chains that fall under diverse control. Thus, overviewing the entire supply chain becomes difficult.

·      Due to the popularity of online shopping, consumers now expect goods to be sent to their doors. The rise of e-commerce has increased the complexities of the supply chain and spread the distribution breadth.

·      Today, consumers are looking for the best prices and the best services. Thus, quick and accurate order fulfillment has become a necessity, and supply chain optimization has emerged as a goal.

·      While Enterprise Resource Planning (ERP) and Supplier Relationship Management (SRM) software are being used increasingly, these aren't agile enough. Hence, a better version is required leveraging the current technological potentials. 

·      Besides, there is a larger collaborative need across the entire supply chain which can’t be fulfilled through the traditional methods and arrangements. Digitalization can bring immense benefits by breaking many barriers and simplifying information sharing across the chain.  

3. Process for supply chain digitalization 

·      The process should begin by deciding upon a digital business-vision across the organization. It means that the organization must identify the type of digital experience that they aim to deliver to its customers and the supply chain backbone required for the same. 

·      The next step is to align the supply chain operating model to the digital vision decided upon. It may also include choosing from multiple investment options, such as:

o   Internet of Things (IoT) – measures performance in real-time

o   Analytics - predicts failure and automate processes

o   Mobile for data access – for wider access and response

o   Application program interfaces (APIs) - shares data with the partner ecosystem

·      Finally, it is important to prioritize digital technology investments. Only improving existing operations to boost the current capacity may not be enough. Instead, organizations must focus on building the future digital supply chain step-by-step. 

Thus, to survive today’s competition, organizations or MSMEs must initiate their digital transformation at the earliest because it’s a journey that can’t be completed all at once.

Partnering with the right guide or expert can make the digital transformation far smoother and more profitable. To get in touch with an experienced digital expert, register your company on bizproworld.com. Or, connect at connect@bizproworld.com to know more about us.

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