Across all business and lifestyle sectors, digital transformation has changed the way we communicate and interact with each other and our surroundings. New tech and gadgets like smart devices, computers, automatic vehicles and integrated wearable technology have changed how we engage with and integrate information. This in turn is affecting all industries and supply chains. This is further enhanced by the convergence of data, augmented reality, artificial intelligence, analytics, connectivity and automation. So how has digital transformation radically affected supply chains? Here are 5 ways.
1. Keeping the supply chain connected
Warehouses are beginning to integrate smart logistics into their operations. This takes the form of remote fleet management and cargo tracking. Now, companies can access real-time stats, insight, transits and locations of their inventory. This in turn can be used as a way to track performance and analyse inefficiencies. In this way, businesses are now able to automate, adapt and optimize their supply chains and keep up with the various customer demands. Here internet integrated technology requires minimal human intervention and can really improve the entire supply chain ecosystem.
2. Demand-driven supply chain management
Traditionally, demand-driven supply chain management is based on analyzing historical data and then forecasting against this. The challenge with this is that this method is not always indicative of current trends. Now, you can embed sensor technology at various touchpoints of the supply chain in order to monitor, collect and report data from the whole environment. This means that changes can be made in real-time and this smart analysis can greatly improve the accuracy and demand required. This space is evolving with predictive technology to try and anticipate how these data points can fulfil new needs and anticipate changes.
3. The digital thread formation
The digital thread is a framework for sharing communication with all the data consumers and building a connective loop of feedback. This refers to the way in which people, data and workflows are integrated and analyzed. This allows the system to become more responsive and creates a digital thread between the supplier, the business and the customer. All these measures save costs, improve efficiencies and satisfy customers in more ways.
4. Value co-creation
A more integrated supply chain predicts new levels of transparency between all stakeholders. This is a function of data access across businesses and networks within networks. When multiple networks are integrated into each other this synergises the value offering so that savings and opportunities are generated right across the supply chain. Creating symbiotic relationships that benefit from each other.
5. Evolving customer expectations
Many companies are needing to digitize and optimize their supply chains due to the changing habits and demands of their customers. The pandemic pushed any late adopters online and forced all businesses to improve their e-commerce and digital supply chains. This has increased the demand of the customer who now demands remote communication, digital ordering, digitized customer service and AI product tours.
The bottom line
Digital transformation is really changing the way businesses have been run traditionally. Using technology to mitigate risk, transform innovation and support collaboration. To improve your supply chain through digital integration, consider a Merchant Capital cash advance and fund your business’s growth in the next 48 hours.