Post-2020 supply chain digitization is not optional anymore!

Digitization is the buzzword in the modern business era. Every business owner in the world has taken up some form of digitization for their process. Even if there are similar terms in the market like digitalization and digital transformation, their functionalities are different.

Digitalization is a process for massively transforming your business; it is incomplete or cannot be accomplished without the organization being digitized first.

91% of German manufacturers are investing in digitization. — Flexis

Uncertainty and unpredictability will always continue to be a part of business processes. Be it an automaker who relies on world-class assembly-line components or a biopharma company dependent on temperature management, real-time data and disruption are the need of the hour.

What is supply chain digitization?

Digitization of the supply chain seems to be popping up more often. The reason is simple, in the modern manufacturing industry, businesses require digitization to leverage growth and viability. Both of them are critical value propositions for manufacturers across the globe.

But as a manufacturer, you might be asking this to yourself,

• “Does swapping legacy technology stack with newer technological platforms enough for achieving supply chain digitization?”
• “Create an ecosystem where various systems, solutions, and technologies communicate with each other for automating my supply chain management process?”
• “Should I disrupt my supply chain management cycle, optimize the process and focus on streamlining planning and production strategy?

Let’s say that a digitized supply chain includes a little of everything mentioned above to ease things for you. For modern manufacturers, a digital supply chain

• Creates an architecture of integrated and intelligent solutions, removing manual or human intervention.
• Incorporates advanced systems capable of data sharing for seamless workflows.
• It helps them reimagine their supply chain management strategies, from procurement to production floor to customer’s (wholesaler/retailer/supplier) front door.

Defining supply chain digitization

With industry 4.0 spearheading digital transformation across every business sector, it is essential to note that supply chain digitization is part of a grand scheme. Digitizing the supply chain is critical for integrating the sequencing of planning and production solutions. It is also essential for creating a more visible supply stream across the various value chain touchpoints. What do manufacturers gain from digitization? A responsive, agile, and transparent supply network that can quickly adapt to industry-wide unknown variables like

• inventory shortages or overages
• order modifications
• resources availability

Achieving digital supply chain

85% of US retailers haven’t completed supply chain digitization — Reuters Event

We want to focus on the fact that with successful integration and achieving operational digital transformation, manufacturing companies can

• Achieve lower production costs
• Optimized operational costs
• Accelerated lead times
• Enhanced reporting
• Advanced data analytics capabilities
• Better production programs

We talked about value proposition in the previous segment, so we naturally explain a precise meaning of the same. A digitized supply chain works towards breaking the cross-organizational silos and various other collaboration barriers in the grander scheme of things.

Why? For achieving the business goals mentioned above, manufacturers must leverage a pervasive integration strategy that eliminates multi-suite applications and incorporates better planning and reporting solutions into a particular module.

They need to make sure that this module is easily accessible across the company’s value chain. With the rise in Big Data, cloud computing, and various data storage and management platforms, manufacturers can now gather more data. This data can be used for better real-time analysis and reporting.

How do you digitize a supply chain?

With the faster Industry 4.0 adoption across industries, supply chain sector included, businesses are also seeing never-seen-before innovative technologies. These technologies are beneficial in transforming a supply chain network, company, or procurement process. Better and faster methods and cost reduction are two of the most anticipated benefits of digitizing the supply chains.

When you decide on digitizing your supply chain operations, you boost your operational efficiency. With pricing improvement and cutting of operating costs, you gain more efficiency in sales too. It also brings end-to-end transparency where every component in the supply chain network can access every crucial data.

With that being said, let’s help you with a few steps to digitizing your supply chain.

1. Create your checklist

You need to know where your supply chain efforts are and where you want to take them in the coming time. For that, you must create a checklist for accessing your situation

• Realize your current supply chain structure
• Highlight the potential risks involved with the suppliers
• Access the feasibility of new ways of digitizing your supply chain

When you analyze all these points, formulate your supply chain digitization strategy.

2. Formulate your digitization strategy

When you have accessed your current situation, you know what risks are with the planned digitization. Create an understanding between yourself and all the other components involved in the digitization process.

These components are your partners, suppliers, other businesses, and direct customers. You need to acquire more data regarding the potential of your new supply chain digitization strategy and get everyone involved on the same page.

3. Sustainability is the key

For any business to succeed with its digital organizational transformation, it is essential to have various measures to ensure your new systems long run. It would help if you took protective measures for ensuring system stability in varying business environments and market conditions. That is one reality COVID-19 helped manufacturers across the globe realize, to be prepared for the uncertainty.

4. Invest in the proper technological stack

Modern manufacturers need to build and find top digital talent in automation, predictive analytics, big data, AI, ML, and IoT. It generally depends on the specific field your business is in, but technologies like freight or truck tracking can ease route optimization. Supply chain digitization helps create and maintain transparency while managing

• Raw material replenishment
• Maintenance
• Production
• Transportation
• Delivery
• Customer satisfaction

As mentioned above, digitizing the supply chain allows manufacturers to mitigate risk while delivering orders and enhancing driving efficiencies.

Benefits of digitization in supply chain

Here are some of the significant benefits of supply chain digitization.

Concluding thoughts: Accelerate your supply chain cycle for boosting your business growth

Digital technologies dominate the new world. Digital leaders know this fact. Better technological fusion in their operational structure will help them

• pace their scalability
• cut down unnecessary cost
• create more profit opportunities

Technological disruptions are the foundation behind every business’s growth and heavily change their base operational model. So it is essential to consult with an industry expert in digital product development to create a checklist of the changes beforehand.

Manufacturing companies often face the challenge of identifying the digital trends affecting their industry and customers. Sometimes they experiment and have to face the result of that experiment. But supply chain digitization is a very risky playfield, and risk needs to be kept at bay.

In a post-pandemic era, where every industry is struggling to be resilient, here’s a research-backed “EXECUTIVE COMPASS” that helps you monetize your ideas about digital manufacturing & supply chain.

Rapidops, as a digital product consultant, has been guiding businesses from various sectors to break free from the data silos and disparate supply chain processes. If you want to gain momentum in your segment and create a truly digitized supply chain, look no further and get in touch with us.