Digitalization in Three Steps

Going digital with your supply chain has many well-known advantages such as driving growth, mitigating risks, decrease and controlling costs. But still according to a study from Gartner, less than 50% of companies have yet to start a roadmap for future supply chain digital transformation. Many have been too slow to react and adapt to the foundational physical and technical capabilities to drive digital innovation effectively.

“Supply chain leaders who achieve supply chain digital transformation successfully integrate well-established physical capabilities with emerging digital innovation.” -Gartner, 2020

To achieve the ambitious goals of blending physical and digital capabilities Gartner mapped out a three-step plan for supply chain digital transformation. It is worth to note that each of these steps is ambitious but still crucial for long term resilience and competitiveness.

1. Embed supply chain in the digital ecosystem

The dynamic networks of entities that are interacting with each other in real-time through integrated solutions are called the digital ecosystem. The entities can vary from people and things to businesses, such as customers, suppliers and trading partners. With the collaborative use of data, information is shared throughout the supply chain ecosystem. Information, which in turn can be used to make more informed as well as automated decision making, drive efficiency and strengthen relationships between internal and external partners and customers.

Supply chain leaders need to determine how and where to implement digital technology and flow of data in their supply chain, and how to do it most efficently.

2. Implement an autonomous supply chain

For decades have the automation of processes in automation been a natural union. With the advance of big data and artificial intelligence (AI), autonomous processes now have the capability to enhance the productivity of people.  While the technology of AI application into the supply chain is far from comprehensive, it is expected to make a range of complex decisions regarding predictions, react to changes and make changes to strategy.

Supply chain leaders need to make sure they have sufficient data to feed their future AI projects as the quality of its predictions, warnings and decision making is directly tied to the amount and quality of data it must work with.

3. Synchronize with digital business

The future excellence and longevity of a supply chain is tied closely to its ability to response to challenges, disruptions and changes. In other words, it’s resilience. By synchronizing physical capabilities with digital ones, companies can build resilience in their supply chains. Doing so will allow them to identify risk for disruption in the supply chain, react and mitigate adverse effects to the supply chain efficiently.

Key to synchronization are: Proactive risk alert and mitigation,  autonomous operational responses as well as instant demand shaping and sensing.

Investing in supply chain resilience as well as in digitalization in general is crucial today, these are widely known fact raising in importance by the day. It is of utmost importance to reach a high degree of resilience is the establishment of a data driven, pro-active and deviation focused supply chain.