2023-Digitisation of Supply Chain
Digitization of supply chain refers to the use of technology to automate and streamline various processes involved in the supply chain, including procurement, manufacturing, transportation, warehousing, and delivery. This involves the use of various technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Big Data, and cloud computing, to gather and analyze data in real-time, enabling organizations to make better-informed decisions and optimize their operations.
Benefits of digitization of supply chain include improved efficiency, reduced costs, increased visibility, enhanced collaboration, and improved customer satisfaction. By automating and streamlining various processes, organizations can reduce manual errors and delays, improve inventory management, optimize transportation routes, and improve communication and collaboration between various stakeholders in the supply chain.
We have seen digitisation now a way of life. When we talk about technology its become more and more important as every company has to ensure advanced technology is in place. The benefits what we know from this is immense. There are still companies who have not adopted technology and have not still gone into transition to digitised supply chain.
2023 is the year where this cannot be ignored and in my view each company which has supply chain in its organisation, has to neccessarily get into digitisation of their supply chain process else they will be lagging behind.
When planning to digitize your supply chain, there are several steps you should take to prepare for the implementation. Here are some key things to consider:
Define your objectives
The first step in preparing for digitization is to define your objectives. What are you hoping to achieve by digitizing your supply chain? Are you looking to improve efficiency, reduce costs, increase customer satisfaction, or something else? Clearly defining your strategic objectives will help you focus your efforts and ensure that your digitization efforts align with your business goals.
“Digitization is transforming the supply chain from a linear model to a dynamic, interconnected network that can more effectively respond to volatility and variability in supply and demand.” — Brian Tessier, Director of Supply Chain Solutions at Infor
Assess your current supply chain
Before you can begin digitizing your supply chain, you need to have a clear understanding of your current processes, systems, and workflows. Analyse is that a solid foundation? Conduct a thorough assessment of your current supply chain to identify areas that could benefit from digitization and to pinpoint potential roadblocks to implementation.
Digitization is not a choice, it’s a necessity. Companies that don’t invest in digital supply chains will be left behind.” — Matthias Heutger, Senior Vice President, Global Head of Innovation and Commercial Development at DHL
Identify key stakeholders
Digitizing your supply chain involves multiple stakeholders, including suppliers, customers, and internal teams. Identify who will be involved in the digitization effort and ensure that everyone understands the goals and benefits of the initiative. Do the stakeholders know whats coming and is everyone prepared?
Digitization is unlocking unprecedented levels of supply chain visibility, efficiency and performance.” — Thomas Doherty, Senior Director of Global Supply Chain at Cisco Systems
Choose the right technology
There are many different technologies that can be used to digitize a supply chain, including IoT devices, cloud-based software, and analytics tools. Choose the technology that best meets your needs and is compatible with your existing systems.
“Digitization is a game-changer for the supply chain, enabling companies to improve efficiency, reduce costs, and increase customer satisfaction.” — Kevin O’Marah, Chief Content Officer at SCM World
Plan for data integration
One of the most critical aspects of digitizing a supply chain is integrating data across different systems and platforms. Ensure that your data is standardized, accurate, and accessible across your entire supply chain. Most important Data is accurate and correct. Have we audited the data?
“Digitization is revolutionizing the supply chain by providing real-time visibility, enabling better decision-making, and driving innovation.” — Simon Ellis, Program Vice President of Supply Chain Strategies at IDC.
Ensure cybersecurity
As you digitize your supply chain, you will need to take steps to protect your data and systems from cyber threats. Develop a comprehensive cybersecurity plan that includes regular assessments, employee training, and best practices for data security.
Develop a roadmap
Finally, develop a clear roadmap for the digitization effort, including timelines, milestones, and metrics for measuring success. Ensure that all stakeholders are aware of the roadmap and understand their roles in the implementation process.
However, implementing a digital supply chain can be challenging and requires significant investment in technology, infrastructure, and talent. Organizations need to carefully assess their needs and develop a comprehensive digitization strategy to achieve maximum benefits. Additionally, they need to address various challenges such as data privacy, cybersecurity, and the need for new skill sets and talent to support digital operations.
Overall, the digitization of the supply chain is transforming the way organizations operate, enabling them to achieve new levels of efficiency, agility, and competitiveness in today’s fast-paced business environment.By following above steps, you can effectively prepare for the digitization of your supply chain and ensure a successful implementation that delivers real business benefits
You can also watch this on youtube https://youtu.be/X_bYKl6qUVc
