Digitization: The Future of Supply Chain Management
What is the supply chain?
The supply chain, in its simplest form, is sourcing raw materials, refining and manufacturing those raw materials into usable commodities, selling to end users, and finally, delivering finished products to consumers. Companies that can properly manage and optimize this process are most competitive in their market and are able to ensure long-term sustainability.
What challenges come with digitizing the supply chain?
Like many widespread technological advancements that have enriched our lives, utilizing artificial intelligence within the supply chain can radically improve business functions by streamlining manual processes, optimizing efficiency and boosting production.
Though digitizing the supply chain proves to be extremely beneficial, it is also incredibly complex. Often, the systems being utilized by today’s supply chain professionals are out-of-date and do not allow for consistent reporting and integration. This poses an issue when integrating artificial intelligence since machine learning requires consistent, accurate data to develop effective algorithms and predictive models.
How does digitization improve supply chain performance?
Digitization of the supply chain doesn’t just help organizations strengthen their business model; it helps them to collaborate more effectively with both customers and suppliers. To strengthen data quality and ensure consistent transparency of materials flow, inventories and materials supply, organizations should seek end-to-end integration of dynamic supply chain networks.
Here’s a few key ways that digitization is disrupting the traditional supply chain:
- Improved Efficiency: Today’s consumers want their products as quickly as possible. With an increase in global demand, supply chains need to be able to meet tight deadlines without compromising quality. Adopting a digitized approach will be crucial in keeping up with increasing demands and can bring significant economic benefits to an organization’s top and bottom lines.
- High-Quality Data: With digital solutions in place for data capture and analysis, professionals at every touchpoint become aligned and can effectively communicate their needs. High-quality data doesn’t just increase efficiency, it empowers every member of the supply chain to make better, smarter decisions.
- Proactive Planning: Digitization offers real-time access to information that can improve tracking, reduce delays and eliminate wasted efforts, resources and time. The ability to predict, assess and mitigate disruptions and risk empowers organizations to take a proactive instead of reactive approach.
Looking towards the future, supply chain digitization is here to stay. The NOW Network is leading the charge in digitizing the logistics ecosystem by providing wholesalers, 3PL carriers, drivers and end users with complete visibility and accuracy throughout the delivery lifecycle. Interested in learning how supply chain digitization can positively impact your organization? Schedule time with an experienced member of our team at https://now.network/!