Key Benefits From the Rise of Supply Chain Digitization Today’s supply chains are run by digital backbones. The digital supply chain requires investments in technology and IT infrastructure which are strategic assets that define a company’s ability to effectively compete in its marketplace. Digital supply chain combines all the aspects of a physical supply chain with IT enabled processes. It is basically the implementation of various advanced technologies such as IoT, artificial intelligence, blockchain, machine learning and so on in order to drive improvements to traditional supply chains. For digital supply chains, organizations need to have an optimized digital technology and infrastructure, properly designed business processes, new organization structures and integration with customers, logistics companies, machines and suppliers. The ultimate goal of having a digitized supply chain is to get insights for eliminating waste, improved efficiency and greater profits. Most companies struggle to leverage those investments into lower costs, higher levels of productivity, lower working capital requirements and improved sales. Group50, a leading supply chain consulting firm can help companies to optimize their supply chain to improve all performance metrics. They take a holistic approach to optimizing digital supply chains which includes the integration of systems that are operated by customers, the company, logistics companies and suppliers as well as the strategic needs of the business. Building a digitized supply chain is a smart business move and needs a comprehensive strategy. There are multiple benefits of digital supply chain over traditional supply chain. Some of these are listed below: Visibility Digitized supply chains give a complete view of the entire supply chain. Greater transparency and visibility is achieved at every stage of the product life cycle. Information regarding the movement of the product through each cycle is available to all the supply chain entities simultaneously. Collaboration Increased information sharing automatically leads to collaboration which reduces the development and turnaround time. It brings value in the entire supply chain and its performance.
Decision making Digital supply chain automates all the business processes which streamline the workflow. Automated solutions give insights into real time information which can be implemented in decision making and execution. Cost management and cash flow One of the most crucial aspects of digitizing the supply chain is cost management and improved cash flow. This is all possible because the faster the supply chain moves; the less capital is tied up in the supply chain which results in better cost management. It is important for organizations to develop an appropriate supply chain technology roadmap that combines all advanced technologies. For this, they need to contact supply chain management consultants who can help them systematically arrive at the right decisions and implementation roadmaps. They pull together the right mix of seasoned IT professionals, business process owners and vendors to understand the current state, develop a roadmap to the future state and support its’ implementation. For more details, you can consult a Group50 supply chain management expert.