Business development and modernization of outdated processes are tightly bound. It's always a good idea to implement new technologies or approaches to optimize the production and distribution of products or services. However, the COVID-19 pandemic made this possibility irreversible. The digitalization of a supply-chain is not a voluntary option anymore. It is an obligation that can boost your earnings.
According to the McKinsey study, only 2% of CEO said that supply chain digitization is one of the main priorities of their digital strategies. In general, supply chains have a digitalization level of 43 percent. At the same time, it's possible to increase your annual earnings by up to 3% if you will manage to digitize your supply chains. Don't you think that the interest to the Supply-Chain Digitization and it's positive effect is incommensurable?
According to Harvard Business Review, in several years, we can be witnesses of the revolution within the business ecosystem. The above-mentioned ecosystem will depend on analytics, machine learning, logistics platforms, and so on. Only if you are active enough to digitize your products and supply chains, you will get a possibility to create a new business model and get benefits.
In general, there are several possible ways to benefit from digital transformation of the supply chain:
*Staying focused on the automation of processes
There are special solutions that can help you handle gathering and entering of data. It's possible to automate this process and save the time of your personnel. In this instance, your employees will have a possibility to stay focused on other important issues.
*Better customer experience
The digital transformation of the supply chain enables managers to control the processes within the company significantly better. In addition, it's also possible to use a track-and-trace system. The above-mentioned system provides all the order details to the customers.
*Advanced decision making
Companies that are ready to implement the supply digital transformation get a possibility to optimize the decision-making process. Improvements in business processes can be achieved by using machine-learning algorithms and predictive analytics technology that allow reaching the best possible solutions for a variety of issues.
It's quite obvious that the digitization plan has to be tightly bound with the main strategic goals of the company. Of course, you might have taken this into account even before digitization.
However, you should also keep in mind the main modern challenges and pressures companies commonly face in the era of a digitized economy. Often, digital transformation consulting is needed to help a company set the right goals and avoid common pitfalls related to technology upgrade.
When planning your supply chain digitization, consider the following:
Strategy. You should make sure that you have enough understanding of your current supply chain and the associated stages and processes, as it would be wrong to digitize or automate something which is flawed from the very beginning. Make sure you have the vision of what you want to achieve with supply chain odernization.
Automation. The well-developed system for supply chain management may not only receive and analyze information but also perform actions and guide personnel decisions. Define how far you want to go in the automation of processes.
Personnel. Ask yourself whether the company has the personnel to manage the system you will implement or whether it does everything possible to look for new talented specialists. It's also important to support and encourage your employees to welcome innovations and change.
Having answers to the above-mentioned questions, you will be able to create a road map of your digital transformation in the near future. This road map should include planned improvements, which can help you reach your ultimate business goals and timeline for technology implementation.
It is quite obvious that supply-chain digitization is our future. However, most business owners still miss this great opportunity to optimize internal processes and get more earnings. Thus, it's still possible to become the pioneer of the digital transformation of the supply chain and get a competitive advantage on the market.