The supply chain is going digital and, in the digital supply chain – everything is focused on data.
What is a Digital Supply Chain?
Most businesses that we interact with, often have a mix of manual or sometimes paper-based processes and digital systems across their supply chain network.
A digital supply chain is a supply chain network (DSN) that focuses on using digital systems or technology tools to reduce the need for disparate systems through connectivity; eliminating manual processes and leveraging the data that is available through these systems to enhance the entire supply chain network.
In today’s world, to create a competitive supply chain, peak performers must adopt the full potential of digital into their day-to-day processes and long-term supply chain strategies.
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4 Things to know about digitizing your supply chain
As digital disruption hits all leading industries, the supply chain for these business’ needs to follow suit to meet or exceed customer expectations.
Here are a few things to know.
- A digital supply chain is inevitable for highly competitive markets
Companies today are being faced with reinventing their supply chain strategy and thinking of the supply chain as a Digital Supply Network (DSN) that depends on a new breed of supply chain management – one focused on knowledge, analytics and scalable, technology-driven change. This change enables companies to increase performance and overall customer satisfaction making it inevitable for businesses looking to remain competitive.[Read More: Here’s How To Make Your Data Work For You]
- Data growth leads the need to realign existing strategies
Unprecedented data growth is driving everything from advances in machine learning to cloud-based data technologies equipped to harness enterprise data management for the digital age. As supply chain data and data sources proliferate, the supply chain is disrupted by data growth and must realign and adapt to new enterprise strategies to handle business-critical data.
- Data must be interpreted in a contextual manner
Enterprises are forced to develop enterprise data strategies that align with new digital efficiency goals. With an enterprise data strategy established, enterprises are simplifying critical operational functions of the data management process, including analytical processes, standardizing data taxonomies across the enterprise and classifying data in the context of key questions that are most identifiable to enterprise operations.
- Create a transformative business model to leverage new technologies
A recent study revealed that 70% of retail decision makers surveyed are ready to make changes to adopt the Internet of Things (IoT), and 65% plan to invest in automation technologies for inventory management by 2021. The IoT data surge, for instance, is driving enterprises to capitalize on data flowing back and forth from customers, creating new opportunities to capitalize on predictive analytics to respond to real-time customer requirements. As the supply chain processes and interprets consistent data from customers, a new vision is emerging in the supply chain – one with a focus on real-time effectiveness fueled by a transformative business model. Digital supply chain technology solutions should allow for easy configurability and modeling to fit evolving business processes.[Read More: Will Big Data Change the World?]
The key to benefiting from a digital supply chain is in leveraging what it delivers. And, to do so, there needs to be alignment and adoption of digital technologies that increase business intelligence, are malleable enough to evolve with your business, and create a synergized supply chain network that’s driven by data.