Digitalisation in the Supply Chain
Technology is constantly changing and seeing rapid growth, which leads to inevitable changes in the supply chain and prompts the industry to react and adapt accordingly. In recent times we are seeing more efficient and technologically advanced systems and processes.
So what are the benefits of digitisation and how can we use analytics in order to increase profitability, efficiency and decrease economical impacts?
Efficiency in the supply chain is achievable through the automation of tasks and planning. For physical tasks we can bring in robots who will oversee the organisation of boxes and pallets within the warehouse. This of course involves receiving shipments, unloading to put away as well as picking, packing and loading for shipments.
Digital forecasting allows for a more efficient approach to distribution, reducing delivery time through analytical predictions for external and internal factors. These predictions will give a greater insight into customer demand, market trends as well as internal factors such as machine repair. Reports are also completed on a much more frequent basis allowing for efficiency and better reaction time.
Digitisation enables a higher degree of accuracy, with analytics providing up to the minute data it allows transparency of information from top level to service level and also processing data such as GPS positioning of trucks in the supply chain network. This level of accuracy allows for end to end transparency between all levels and positions within the supply chain.
Impact on the Workforce
With more automated processes it will allow for supply chain management to be accessed remotely, encouraging a flexible working approach which has been proven to improve productivity and well being of staff.
Digitisation and cloud based platforms enable a much more streamlined and integrated buyer – supplier relationship. Raising issues or completing tasks are easily communicated between parties creating greater transparency along the supply chain and increasing confidence.
With digital advances providing improved efficiency it provides the best platform to give consumers what they increasingly expect – speed of service. Consumers are expecting products to be delivered directly to their doors and faster. The rise of companies such as Amazon has impacted the distribution network, increasing the need for online shops and in turn the demand for goods quickly and cheaply. This naturally puts pressure on the optimisation of the supply chain and shifting to digital processes will assist the transition.
It is certainly apparent that the digital transformation of logistics will add long lasting value to relationships along the supply chain and offer positive, fast paced and efficient solutions. Allowing for cost cutting, and reduced economical impact through stringent planning it will invariably result in easier processes for all involved and maintain an updated supply chain.