How digital transformation can bring value to your supply chain
Thea Jacobsen |
17. Sep 2019
4 minutes read
Digital transformation is changing the different industries of the world. It is also changing every aspect of how logistics is being operated. Put in a simple way, digital transformation means using new and fast digital technology to solve your problems.
The world of logistics is lagging behind when it comes to digital maturity and some companies have a long way to go. Digitalization opens up for greater visibility, reactivity, planning and efficiency in logistics. All of this will soon be a necessity in order to stay competitive. By embracing the digital transformation, all parts of the supply chain can be enhanced and you will have no trouble meeting the challenges the industry is currently facing.
Take a look at how digital transformation can bring value to your company, your partners and your customers.
1. Internal processes
The first step towards a fully digitized supply chain is aligning systems and processes within your own business. Digital capabilities are crucial if you are going to be successful in today's environment. You need to identify how you can improve your internal processes and workflows to become as efficient as possible. Getting rid of paper processes makes it easy for information exchange between all stakeholders.
For many companies, adopting new technologies can seem like a scary and costly affair. But it doesn't have to be. For instance, implementing a SaaS solution is a low initial investment and you can pay-as-you-go. Moving from manual processes to digital logistics will make logistics operations more efficient which means you have more resources and time to spend on activities that will create value for your company.
In today's global world, your success depends on how well you collaborate with your suppliers and partners. Many of the systems used in current supply chains work in a linear way, which results in limited information sharing. The dynamically end-to-end picture is missing and you don't have detailed information about your shipments. According to Accenture, 80% of the
supply chain data you need to make decisions exists outside of the organisation. This means that all you can control, is the remaining 20%.
In order for companies to make faster and better decisions, visibility across
all the different partners is a necessity. Companies need to start thinking networks instead of linear processes. There is no need to replace all of your existing systems in order to make this happen. By digitizing your supply chain, it is possible to integrate existing systems and get the full overview you need to be on top of your game.
3. Customer experience
In B2B, customers also expect faster, flexible and low-priced shipments. Margins are low and the industry is facing much higher expectations surrounding efficiency and performance than earlier. Fast deliveries at a low cost are the new norm.
Despite the new demands, studies show that 70% of companies do not have the ability to predict delays in their deliveries, hence not meeting customer expectations.
The end-to-end visibility that comes with digitally transforming your supply chain, makes it easier to understand the demand patterns. You learn to understand the your customers. You become equipped to plan, forecast and be agile in the case of unexpected events. The more data and insight you have, the easier it is to make good decisions, ensuring high customer satisfaction.
One by one, industries are going through a digital transformation. This is the future and the companies who don't embrace it will be out-competed by new entrants with new technology. The value that the digitalization of logistics operations brings is much higher than the time and resources spent going through the transformation.