Build Resilient Supply Chains – Introduction
Supply chains are quickly becoming more digital, with many businesses adopting digital transformation initiatives. But what does this mean for supply chain managers? First, it means that they need to know how to analyze data on the fly and use it effectively. Second, it means that they have to understand how technology is impacting supply chains around the world before making decisions about their own business.
Digitization is creating a fundamental shift in the business landscape and supply chains across the board.
In this era of digital transformation, it’s become clear that supply chain managers must learn to embrace the opportunities that digitization presents. Data and technology are changing the way we do business, forcing enterprises to reevaluate how they operate their logistics processes and create new ways of working. As a result, supply chains have become more digitized than ever before and will continue to evolve at a rapid pace in the years ahead.
With this in mind, it’s important for supply chain leaders to prepare for what lies ahead by developing a digital strategy that positions them for success within their industry. The truth is: no one knows exactly how digitization will affect supply chains over time—but one thing is certain: it will transform them in ways we can only begin to imagine now.
A proliferation of data
As you know, supply chain management is becoming increasingly complex. A proliferation of data related to supply chain logistics requires new ways of handling all that data. Now, in 2022, supply chains have over 50 times more data available than they did five years ago. Data is coming from a wide range of sources and is becoming more complex as companies integrate multiple technologies into their networks. This includes machine learning systems that can process information at incredible speeds and accuracy, which has led to a huge increase in the amount of real-time inventory visibility across industries—measured by percentage growth rates for IoT-enabled devices (from 8% to 90%) are expected to continue growing rapidly through 2022 with demand steadily increasing due to increased adoption amongst businesses around the world due mainly because they provide cost savings along with improved customer experience through automation which relieves employees from mundane tasks while improving productivity levels among those who remain employed within any given organization.
Drawing from both structured and unstructured data from myriad sources such as, IoT, social networks, news feeds, weather reports, and blockchain-enabled networks
The second step is to assess the supply chain data across all points of influence, which will help you determine if your current strategy needs to be adjusted based on the insights that are revealed. Supply chain data can come in many forms, including structured and unstructured information from myriad sources such as IoT, social networks, news feeds, weather reports and blockchain-enabled networks. The benefits of using this type of data include being able to make better decisions based on real-time information rather than historical trends or projections.
Amid growing uncertainty and fear of prolonged disruption, businesses must act now and digitalize their supply chain.
Amid growing uncertainty and fear of prolonged disruption, businesses must act now and digitalize their supply chain.
Here we’ll discuss how data is used to make decisions, the challenges of managing data, the benefits of using data, the impact on digitalization on supply chains as well as the importance of a digital strategy for supply chains.
At its core, Supply Chain Management (SCM) is all about organizing information.
At its core, Supply Chain Management (SCM) is all about organizing information. This can include everything from simple scheduling systems to complex ERP (Enterprise Resource Planning) software programs and big data analytics platforms. SCM professionals ensure that products arrive when customers need them and in the correct quantities, at the correct time and cost, in the most efficient manner possible.
The supply chain is a system of links that connect the producer with the customer; it’s a network of activities that work together to produce and distribute goods and services; it’s a complex network of people, information, materials, and processes—all working together for an end goal: better business outcomes like higher quality products or improved service levels or lower costs per unit sold.
Not only can a digital supply chain enhance visibility and transparency, but it can also anticipate risks and mitigate their impact.
Unfortunately, there are also some risks in a digital supply chain. You must be able to mitigate them quickly if you want to protect your organization and its customers.
But what does that mean? Risks can take many forms—from an unexpected recall or a natural disaster to malicious hacks or cyberattacks—and they often appear at the worst possible time for your business. For example, imagine that you are about to launch a new product line into the marketplace but then find out that one of your suppliers has been hacked! This could lead to delays in shipment and possibly even loss of sales revenue due to customer confidence being shaken as they wait for their orders (or worse). Another example would be if there were an issue with one of your key suppliers causing delays due to lack of raw materials or services available during peak season demand periods; this could lead directly into increased costs which may not have been budgeted for in advance by management teams overseeing operations across several departments within organizations around the globe before making decisions on where funds should go towards supporting future projects rather than investing more money into fixing problems after they happen instead – especially if those problems include spending too much money on things like cybersecurity solutions when there aren’t enough people working full-time jobs looking after critical infrastructure systems instead!
The logistics industry and freight markets have been at the forefront of tech advancement in recent years.
The logistics industry and freight markets have been at the forefront of tech advancement in recent years. This is due to a number of factors, including the need for more efficient distribution channels and the increasing value of goods being shipped around the world.
- The logistics industry is expected to reach $15 trillion in value by 2022. In 2017, it was valued at $12 trillion and grew an average annual rate of 4% over the last five years.
- Freight markets are expected to reach $1.1 trillion in value by 2022, up from $865 billion in 2017 and growing at 2% annually over the last decade or so (with some variation based on region).
As technology continues to advance rapidly within these sectors, many companies are looking for ways they can use technology to gain competitive advantage over their peers. Data analytics is key to leveraging the growth this industry is experiencing.
What does digital transformation mean for your organization?
- The ability to access and analyze all supply chain data in one platform provides a single source of truth.
- Digital transformation is not just about technology. It’s about how people work together to achieve results.
As supply chains become more tightly integrated, it is important to identify partners you can trust to be reliable players.
As supply chains become more integrated, it is important to identify partners you can trust to be reliable players. Trust is one of the most important elements for successful long-term relationships. In fact, a recent study by CMO Council found that 88 percent of respondents consider trust to be an essential component of their supply chain relationship with suppliers.
Trustworthy partners will deliver on what they promise and act in good faith towards their counterparties at all times. They are transparent with each other when issues arise and work together to resolve them quickly and effectively. These characteristics are especially important as we move towards collaborative sourcing models that require more collaboration between suppliers with different capabilities across geographies and industries than ever before – collaborating across these traditional boundaries means building trust between parties who have never worked together before, which can be challenging in itself but also requires high levels of mutual respect and consideration along the way if they are going to succeed as partners over time (or even just one project!).
Here are some examples of technology that is impacting supply chains on a global level.
Blockchain technology is a decentralized, distributed ledger that records transactions across many computers. It’s used to track and verify transactions in the crypto world, but it has applications in supply chain management as well. The technology enables companies to track their goods around the world and provides an immutable record of their journey—a powerful tool for reducing fraud.
While this technology is still in its infancy, blockchain is likely to become an increasingly important part of your organization’s digital strategy over time.
Artificial intelligence (AI) is another emerging trend that will reshape how companies interact with one another within their supply chains—and beyond them as well. AI systems can identify patterns across millions of data points and make predictions about the future based on what they’ve learned; this helps companies anticipate changes quickly so they can adapt accordingly and stay ahead of competitors who aren’t using AI yet (or at all). In addition:
- IoT refers specifically to devices connected via internet protocol (IP), such as smartphones or tablets; these devices collect data from sensors placed throughout factories or other areas where employees work together closely with machinery such as forklifts or conveyor belts.* Augmented reality (AR) uses graphics overlaid onto real-world environments (such as holograms within operating rooms) rather than virtual ones created through VR headsets like Oculus Rift.* Robotics refers broadly here specifically those related machine components capable movement under computer control without human intervention except when necessary; these include autonomous vehicles like drones or driverless trucks that deliver packages door-to-door without
Supply chains will continue to evolve as data and technology play a larger role in shipping and logistics decisions
The supply chain is a complex system that is constantly changing, from how goods are sourced and delivered to customers’ doors. It’s a dynamic environment where companies need to make swift, informed decisions to remain competitive. In fact, the ability to quickly gather and analyze data has become one of the primary differentiators between successful and struggling businesses.
The demand for better data analytics in shipping and logistics continues to grow as more companies embrace digital transformation strategies. From real-time visibility into shipments to predictive analytics for planning routes that minimize costs and delays, we’re seeing an increasing number of uses for this type of technology within today’s supply chains—and it doesn’t look like it’ll stop anytime soon!
Conclusion
No matter where your organization is in its digital transformation, we’re here to help. There’s no question that supply chains are changing rapidly and sometimes in unexpected ways. As more data becomes available from both structured and unstructured sources, businesses are better able to understand the risks associated with their supply chains. The ability of digitalization to anticipate problems and mitigate their impact will help ensure that supply chains continue functioning smoothly if and when there is disruption or opportunity.
Published On : 01/05/2023
