Supply Chain Digitization: Building Transparency & Efficiency
The COVID-19 pandemic is continuing to result in massive disruptions for global supply chains, revealing the underlying inefficiencies that have plagued these systems more and more each day. Many organizations were already working to modernize and digitize their supply chains, but the pandemic has vastly accelerated these efforts as businesses adapt to shifting consumer needs. Some might say that undergoing such a wide-scale transformation during these uncertain times would be risky, but with many logistics and supply chain organizations struggling right now, any opportunity that allows for more efficiency and resilience is welcome.
Of course, plenty of these businesses were undergoing digital transformation efforts before the pandemic, but this crisis has eliminated much of the resistance to change that was preventing them from taking hold. For example, IBM recently conducted a survey of C-suite executives, finding that 66% claimed to have completed tech-centric initiatives that had previously encountered resistance. Additionally, the number of executives who planned to prioritize supply chain resiliency over the next few years more than doubled compared to just two years ago.
The message is clear: while some resisted digital transformation in the recent past, the impact of COVID-19 has highlighted just how important it is to stay competitive and nimble during times of disruption. There are many reasons for this: big data allows supply chains to move away from reactive practices and apply a more predictive approach, which can optimize and improve performance. Additionally, in order for such a widespread digital approach to take root, organizations naturally need to become more transparent, eliminating the silos and other manual barriers that prevent teams from having a holistic view of the organization.
This level of transparency was particularly valuable during the holiday shopping season, which has proven to be far more complex and high-stress for retailers than it usually is.” After all, events like Amazon’s annual Prime Day and traditional holiday shopping always have a tremendous impact on global supply chains, but with the incredible uncertainty hanging over the industry and a greater reliance on e-commerce and delivery networks, you cannot afford to have blind spots in your supply chain. As usual, every year holiday shopping results in a lot of data to process, so having the systems in place to properly analyze and make use of this data is that much more important — even this far in advance.
There are several ways to go about digitizing supply chains and the management process: organizations can involve their IT department more directly in day-to-day affairs and new inventory tracking systems can be introduced. Most important though is simple collaboration between departments and teams. The biggest reason that digital transformation efforts fail is a lack of up-front commitment from team members, and if your team isn’t on board with the changes you are making, those changes won’t stick.
Thankfully, people are realizing just how important digital transformation is for supply chain success in the new year. If you can show why the changes you’re making are valuable and work to address any potential concerns from other team members, it is possible to create a supply chain that is faster and more efficient than ever before!
