In 2022, 78% of the supply chain businesses started investing in digital transformation, but probably you are wondering “Why should I digitalize my supply chain?“. Keep an eye on this article and find the answer.
Digitalization in Supply Chain
Digitalization in the supply chain gained great prominence during the pandemic, this occurred because of the lack of strategy companies had to face global disruptions. For instance, due to the pandemic, ports in the United States and China faced congestion never seen before. This saturation severely affected companies with manual processes, as they had no way of dealing with unfortunate contingencies. As a result, they experienced external bottlenecks, and internal processes also got stuck. In addition, they also suffered from fragmented communication between their supply chain partners. However, despite these uncomfortable situations, the demand for goods and services increased. For example, food companies saw a 100% increase in demand. Therefore, companies realized they needed to take action to overcome their lack of communication and visibility, in order to face real-time contingencies.
Digitalization and performance
After the great disruption, supply chain businesses started to invest in technology. According to the 2022 MHI Annual Industry report, 78% of supply chain businesses started to invest in digital transformation. But why? Because, with the right technology they can monitor global logistics workflow, get accurate information about their supply chain, improve their communication among partners, and mitigate the damages caused by daily disruptions. Going into detail, the main problems digital transformation solves are:
Common problems that digital transformations solve:
- Paper mistakes:. When you create documents manually, in spite of the fact it takes a lot of time, they might have errors, and the entire transaction can go wrong. Now, with digitization, document generation is automated and free of human errors.
- Lack of communication:. Communication is crucial to the functioning of the supply chain. If your communication relies on disintegrated applications, such as simply using Whatsapp or sending emails, which have a very long response time, your logistics will certainly feel the consequences. Therefore, the idea of digital transformation also involves getting a place through which all communication between partners passes, while obtaining a historical record.
- Tracking 24/7:. From simply checking a shipment before it leaves the warehouse to tracking your shipments 24 hours a day requires smooth, well-established communication. Thus, digital transformation allows you to track your shipment, while describing to you the status in which it is traveling and letting you know if something is wrong, to give you the opportunity to take action.
- Inaccurate Information:. Getting accurate and reliable forecasting is one of the most important things for your supply chain to function well. Digital transformation provides you with integrated analytics related to your supply chain, your business, and the global marketplace. As a result, you will have information that helps you know what happens, and when and how something occurs. Thus, It is crucial for supply chain management, as they make decisions based on these forecasts.
As a result, all these benefits companies get by applying technology to their operations. They do not just improve their performance, but their companies’ identity. Therefore, as a great example, Network Shipping decided to digitalize its processes and became Grydd’s partner to optimize its processes and offer the best customer service. If you are interested in digital transformation, don’t waste time and enter the new era of logistics.