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?

Increased Efficiency

Efficiency in supply chain logistics 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 palletised freight 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. 

Accuracy

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. 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 supply chain logistics.

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. 

Supplier Relationships

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.

Customer Relationships

With digital advances providing improved efficiency it provides the best platform to give consumers what they increasingly expect – the 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.

Conclusion:

It is certainly apparent that the digital transformation of supply chain logistics will add long-lasting value to relationships offering 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.