Innovation in technologies has taken off and every day we have new solutions to our supply chain. The possibility of connecting different devices and sharing data are impacting supply chain functionality causing a new revolution in the logistics industry. Therefore, digital transformation appears as a solution to the future of the supply chain, but is it? Keep reading this article and learn about it!
Digital transformation means integrating digital technology into different areas or sectors of a company. The goal of digital transformation is to solve business problems and improve business processes. However, it is not just about applying new technologies to your company. It is about changing the way your company operates through the use of new technologies while realizing and delivering more value to your customers. This is possible thanks to the benefits that digital transformation brings to your company, such as improving performance, having full visibility of operations, increasing communication between supply chain partners, delivering high-quality customer service, etc.
The context of supply chain
Currently, 75% of logistics companies worldwide have not digitized their processes. Some of the reasons are that they do not know where to start, are used to working with manual processes, and do not know what digital transformation means. Surprisingly, this figure was lower before the COVID-19 pandemic. It means that, because of that new reality, many supply chain companies needed to digitize their supply chain if they wanted to survive or take advantage.
Nevertheless, traditionally, supply chain management has focused on increasing delivery speed while reducing costs; but the COVID-19 pandemic, on the other hand, switched the focus. Now, it is interested in resilience, in other words, the ability of supply chains to return to normalcy after disruptions by plant failures, detained cargos, etc. As a result, manufacturers who formerly requested just-in-time inventories are now stockpiling crucial parts, transitioning to a make-to-order business, and diversifying and localizing their supplier base. At each level, digital Supply Chain Management (DSCM) employs relevant technologies using analysis, forecasting, and automation. This way, managers improve resilience by enabling dynamic, fact-based decision-making.
Benefits of Implementing Digital Transformation
Implementing digital technology makes you get real-time visibility 24/7, not just within your business, but the entire supply chain. It also provides you with advanced analytics for better insight, which is useful for supply chain managers to take proper decisions at the right time. In addition, it also helps you to improve your communication with your supply chain partners and your customers.
Human Resources after the digital transformation
Digital transformation requires more than just new technology, it also requires changing the atmosphere which surrounds your team and the way of thinking of your coworkers. Despite training courses, your coworkers and employees need to understand that digital transformation is a new and integrated way to do their tasks and achieve their goals. Therefore, you have also to take this into account before starting your processes.Digital Transformation is not just about applying new technology to your business. It is about changing how your business works by using new technology Click To Tweet
Digital transformation is the future of your supply chain. In spite of their benefits, your company will enter the new era of logistics and improve your customer service. If you are wondering how to obtain all that digital transformation requires, you are in the right place. Start now!