Digital supply network has been used for more than two decades to enhance service levels as well as decrease the expenses. However, it is unable to connect unlike systems, offer end-to-end visibility within the supply network, and crunch massive data, and more. Companies have failed to achieve full potential related to their supply networks.
Fortunately, availability and acceptance of more potent digital supply chain technologies including cloud-based solutions and advanced analytic tools companies are dramatically generating good ROI.
Three main digital supply network strategies
These strategies have proved to help agile companies quickly leave behind less-deft competitors.
Fix performance gaps
Digital technologies are applied to resolve cumbersome supply network issues, which are hard to address using conventional tactics. For example, managers can take help from advanced analytics to evaluate inventory distributions and predict demand more precisely. These are two areas, which were difficult with traditional ERP systems.
Often, the new digital technologies surpass top legacy systems. They are designed for more flexibility and user-friendly. Thus employees can use this new integrated technology without any concern instead of employing Excel spread sheets.
Supply networks real-time transparency regarding which –
- Machines are operating
- Trucks are on-road
- Goods are inside the warehouse
Cannot be attained with ERP systems but advanced supply network system automatically generates vast data per minute, filters, and presents in ways easy to understand. Employees get good insight necessary to steer global network.
Innovative business processes
Automated replacement can transform manual processes. Supply network teams monitor and handle activities easily. They use real-time data regarding inventory, capacity, demand, and other factors to modify global network, which was impossible before.
With advanced analytics, they identify the main cause of poor performance, develop strategies to handle supply network disturbances, and enhance transport service & speed.
Integrated control tower technology helps to track components automatically to the individual unit in real time. Thus teams can predicts delivery time accurately, quickly avert disruptions and proactively offer solutions to consumers, when things go off beam.
Redesign supply network
Leading companies are employing digital supply network technology to redesign their existing supply models. New routes are discovered to decentralize activities and speed delivery. For example, company eliminates distribution channel and develops direct-delivery-to-consumers service in-house using digital technology. Thus saving 3rd party distribution expense and bagging margins controlled by distributors.
Organizations need to move rapidly because digital supply network management has seasoned and is producing good value.