Digital Transformation for Supply Chain and Logistics
A digital supply chain and logistics system will remove inflexible processes and rigid structures with an infrastructure that can adapt to changing demands and work culture. The more connected and intelligent supply chain will enhance company efficiency, resilience to risks, and will add more to business agility. Therefore, companies should follow a holistic approach to embrace Digital Transformation(DX) in their business.
Today, Digital Transformation(DX) is much important than ever. The world is in an evolving state of Digital Transformation that aims to bring reformations for boosting business performance and global supply chains. The application of technology in supply chain and logistics can help organizations streamline their routine activities, expand their system capabilities, and enhance analytical practices. Digitizing this particular business area can enhance business efficiency savings by 55%. Moreover, according to McKinsey research, companies that use digitized supply chains can expect their annual earnings growth to rise by 3.2 percent. With so many positive aspects, adopting Digital Transformation(DX) in the supply chain & logistics must become a priority.
Let’s have a closer look at how the digital revolution in the supply chain can bring a paradigm shift in businesses.
1. Accurate Forecasting:
Companies still struggle with fulfilling product availability commitments. For example, if a customer needs a product within four days, then you need to make sure that it gets delivered within the said duration. Failure to abide by delivery commitment due to calculation error or by any means can render the product unusable or unfit. Moreover, it can harm your relationship with customers resulting in a loss of trust in the market. That’s where Digital Transformation can benefit you. Employing technologies such as machine learning and artificial intelligence in Supply chain & logistics can reduce errors by 50%. It helps in accurate forecasting and predictions that boost product availability. And hence results in fostering positive customer relationships.
2. Better Data Visualization:
Supply chains generate huge data. By applying advanced analytics and creating end-to-end digital supply chain companies can alter today’s operations to avoid future problems. Tracking historical records, supplier performance records, market fluctuations, and total cost scenarios can help identify bottlenecks and prevent future failures. It also unveils the hidden savings and cost reduction opportunities. Plus, having access to analytics and visualization capabilities helps explore future risks and suggest proactive solutions to cater to them. This introduces continuous improvement throughout the supply chain.
Quality is the topmost priority for every business owner. Companies splurge on money to ensure that their end customers get only the best quality products. Using digital systems for managing data and quality of resources can help organizations enforce stringent measures to control and monitor their end products. For example, using data analytics farmers can be guided on the seasonal demands and the right set of fertilizers to be used for enhancing the output for any season. Thus, better resources will transform into quality end products that will ultimately improve your brand’s standard. This is how Digital Transformation in the supply chain can yield a valuable return on investment.
4. Enabling Integrated Automation:
Automating manual processes in the supply chain sector can significantly improve the delivery cycle for retailers. It can ensure faster and efficient delivery without any impending lag. Today, you have intelligent warehouse management systems that can function without human intervention. Various warehouse activities such as sorting, packaging, and transfer of products into production or delivery line can be executed by AI-powered robots. Moreover, the launch of automated delivery vehicles and drone-based systems can transform the demand fulfillment sector like never before.
Hence, Digital Transformation is inevitable. It has the power to redefine the entire supply chain and logistics from end to end. By integrating modern-day digital technology, supply chains will experience:
⤐ Improvement in business collaboration.
⤐ Improvement in customer experiences.
⤐ Faster delivery cycle.
⤐ Increased automation, and enhanced efficiency and effectiveness.
All-in-all, the benefits of Digital Transformation outweigh the costs of transformation. And it should be no surprise that in coming years Digital Transformation will become necessary for survival in the competitive marketplace.
In the next blog, let’s discuss about how Digital Transformation impacting the Insurance industry.
Founder | Group CEO
Originally published at https://blog.transformhub.com.