Most sectors are evolving these days and digitizing their supply chains in the process. And there’s more to it than just being in sync with the times. To start with, digitization is helping to rapidly improve performance, increase productivity and deliver a significantly better customer experience. That being said, many organizations are still hesitant about moving towards the digitization of their supply chains. For all we know, it might be the ‘fear of the unknown’ or maybe the ‘perceived complexity of it’. However, in doing so, they might be depriving themselves of innovation that further promotes transformation. Sounds relatable? Well, let’s expound on it.
What is Supply Chain Digitization?
For generic understanding, a supply chain comprises of people, resources and information that allow a company to deliver their goods or services to their customers. The efficiency of a company’s supply chain is, in fact, a marker of its performance. This alone is a convincing reason for companies to embrace the digitization of their supply chain. You might ask yourself, “so, what is supply chain digitization?” Simply put, this means that organizations are now using technological advancements such as IoT (Internet of Things), Machine Learning and Big Data to digitize their supply chain.
What are the Benefits of Digital Supply Chain?
Digitization of the supply chain can help in improving its efficiency and reliability. Here are the key benefits of a digital supply chain:
Improved Visibility into the Supply Chain
Digitization improves the visibility of the supply chain, thus allowing organizations to identify issues and address them quickly. It helps organizations to mitigate any unnecessary delays or disruptions within the supply chain.
One of the biggest benefits of supply chain digitization is that it automates the complete process, thereby negating the inconvenience arising from traditional practices of doing things manually. This, in turn, significantly improves the performance of the supply chain since it allows real-time tracking of the entire inventory.
Digital supply chains keep organizations up to date in terms of their vital stats. Thanks to this, they can make the necessary changes as per their dynamic requirements. All this helps organizations to cut costs and save money in the long run.
Access to Advanced Analytics
Organizations can also use digitization to gather data related to their supply chain. The digital supply chain utilizes a variety of tools to gather information such as IoT, Big Data and Machine Learning. This information can provide deeper insights into the functioning of the supply chain and deliver a better customer experience in the future. This is, in fact, one of the top advantages of the digital supply chain.
Improve Supply Chain Management
In a traditional supply chain, the task of finding issues can take quite some time. However, in a digital supply chain, organizations can immediately find faults in the supply chain and fix them instantaneously. As a result, the digital supply chain allows organizations to better manage key functions such as procurement, inventory management, and logistics.
How Can I Digitize My Supply Chain?
Are you a convert now? Awesome. Let’s start by understanding the basics of how to digitize your supply chain. Here are some key steps of supply chain digitization:
Evaluate the Supply Chain
The first step on the path of digitization is to evaluate the existing supply chain and look for flaws within the same. Once you have completed the evaluation process, you are in a much better position to start the process of digitization of the supply chain more accurately.
Get the Stakeholders Onboard
It is important to discuss this migration with your stakeholders. By doing so, you will be on the same page and ensure that the transformation of the supply chain meets everyone’s expectations. It is necessary to develop a strategy for the whole process of digitization before you proceed to digitize your supply chain.
Invest in Digital Capabilities
After the completion of the evaluation process and bringing the stakeholders on board, start investing in digital capabilities like supply management software, GPS for real-time inventory management, and robots for packaging, to name but a few.
LTLabs provide digital solutions to organizations that deal in apparel which can help in improving their supply chain management. As an entity, LTLabs has decades of experience in working in close proximity with its partners to help them achieve their goals. Interested to know more? Right this way.