Potential Impact of Digitalization on Traditional Supply Chain 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. Digitally transforming your supply chain involves multiple interrelated activities that affect people, process and technology. The implementation of digital technologies such as blockchain, IoT, and artificial intelligence etc. in traditional supply chains is referred to as digitalization of supply chains. The motive behind applying digital technology to supply chains is to enhance efficiency, improve product quality and discover new financial opportunities. Digital supply chain is complex because of the number of components that make it up. Most companies struggle to leverage those investments into lower cost, higher levels of productivity, lower working capital requirements and improved sales. It requires a comprehensive strategy to build a digital supply chain as it should incorporate the organizational structure, processes, assets and systems. Group50, a leading supply chain consulting firm helps companies optimize their digital supply chain to improve all performance metrics. Their supply chain and digital technology subject matter experts focus on leveraging digital supply chain assets at the intersection of people, process and technology. Supply chain consultants take a holistic approach to optimizing digital supply chains which includes the integration of systems that are operated by customers, consumers, the company, logistics companies and suppliers, as well as the strategic needs of the business. Benefits of digital supply chain
Connects multiple data sources One of the most important aspects of digital supply chain is Internet of Things (IoT). With implementation of IoT, significant improvements to processes can be done and better ways to share data can be used. It connects multiple devices in order to share data across various channels and sites. Run a demand driven supply chain Supply chain digitalization gives insights into real time sales information that help organizations to run the production based upon the market demands. Greater visibility Digitalization brings complete transparency across the entire supply chain. By achieving visibility at every stage of the product lifecycle, lead times can be reduced. Improved customer value Lower lead times, inventory costs and better use of workforce and resources, improves the quality of the product. Enhanced value of the product generates demand for the product and satisfies the customers. Improved cash flow With digitalization, supply chain’s working become fast and in turn improves the cash flow as less capital gets tied up in the supply chain. Studies suggest that still most of the companies are not reaping the benefits of digital transformation in supply chains. For leveraging all these benefits, consult experienced and renowned supply chain management consultants like Group50. Their digital technology assessments and workshops help the organizations to 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.
To have more information, talk to Group50’s digital supply chain expert.
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