Supply Chain 4.0 is rapid remodel how businesses handle their key functions. Digitalisation — assisted by disturbing new technologies such as AI, big data & analytics, machine learning, computerisation and robotics, cloud computing, blockchain, 3D printing, etc. and the explosive growth of smart devices — is evacuating no section of the business untouched. Supply chain management, more complex than ever before, stands to benefit tremendously from going digital. Studies suggest that an interconnected, digital supply chain can lower operational costs by more than 30 percent, reduce lost sales opportunities by more than 60 percent, and even reduce inventory requirements by more than 70 percent, all while making companies faster, more agile, granular, accurate, and efficient.
While transitioning to a digitized, automated and fully interdependent supply chain necessary serious efforts and long-term investments, the pay-offs are huge. Bringing supply chains online can help enterprises reach the next level of operational capability and realize significant cost rebates. Here we discuss how digitalization makes the supply chain more efficient:
- Common Problems Supply Chains Face
Supply chains run into snags all the time. Avoiding them or handling them before they arise are desirable ways to handle the situation. However, if employees are stuck allocating their time on monotonous tasks, it can be hard to see them coming.
- Customer Expectations
If there is one extensive truth about shipping, it is that customers want their products as soon as possible. Now that we live in the world of e-commerce, customers expect quick and specific delivery with stellar service should any complications arise. Having a consolidated warehouse of accurate data to keep up with the updated business dynamic helps key KPIs like customer retention.
- Keeping Up With the Global Market
The COVID-19 pandemic has taken the business world by storm. Not only are all of the normal processes in a supply chain much more difficult on a worldwide scale, but there are a wide bunch of arrangements an operation has to follow when working globally.
A supply chain needs to be very rapid and able to promptly conform to changing global demand. When the future is as unreliable as it is in the current international market, you need to be able to change direction quickly.
- Choosing the Right Channels
Right now, there is already an overwhelming number of options available when considering the order and delivery channels for your supply chain to advantage. A supply chain must have the ability to organize orders coming in from a wide array of channels without slowing down.
Acquire enough data visibility is another critical part of this issue. You need to be completely in tune with how your supply chain works in order to find the best possible channel to serve your operation’s needs.
Supply chain Conversion must extend to both automation and operations. To assure that you’re one of the forward-thinking organizations promoting annual growth and revenue through the digitization of the supply chain, keep these best practices top of mind.
Set down a revolution roadmap. When consolidating new digital technology, assess whether your company has the talent and format in place to support the long-term supply chain plan you’re analyzing. Your supply chain vision must consider not only the current state of your business, but also the future outlook and any pressures or trends that may influence competitiveness. An effective digital transformation also requires research and planning to anticipate changing customer expectations.
Integrating different supply chain functions, such as product development, acquisition, production, maintenance, and logistics, can help an organization identify waste. Centralizing and evaluating inputs across different locations can also bring non-value-added activities to the forefront, helping to prevent double entry of data while facilitating information reconciliation.
Don’t be complacent. Take advantage of the strengths of a digital supply chain to establish in a way that works for you. Drawing on up-to-date processes, enhanced visibility into end-to-end processes, and improved analytical power, look to strengthen your organization’s business model, collaborate better with suppliers, and develop stronger customer relationships.
1. Redesign running modelRevamp go-to-market access
2. Find new routes to clientsSpeed up Shipment
3. Cancel distribution channels
4. Automate filling and packing processes
5. To obtain full value from your technological purchases, it’s essential to grow with supply chain 4.0 and take the time to create a strategy that works for your company’s exclusive needs and goals.