The effective networking between all individuals, organisations and activities involved in a traditional supply chain model has serious implications for the ultimate success of retailers. Supply chain digitisation is the next stage in the evolution of supply chain models: the progression towards an integrated and intelligent sequence of solutions, incorporating new technology and data sharing.
As PwC states: ‘The goal of the digital supply chain is ambitious: to build an altogether new kind of supply network that’s both resilient and responsive.’ What companies also end up with is a more responsive, agile and transparent model that lowers their production and operation costs.
There are many benefits of a digitised supply chain; we explore some of the main advantages below.
A demand-driven supply chain
A digital system enables a demand-driven supply chain, allowing organisations to adjust products in the supply chain based upon demand for them using real-time sales information – accelerating production of bestsellers and cutting slow movers. In short, retailers can respond to a host of industry-wide unknown variables associated with fluctuating demand, such as inventory shortages/overages and availability of resources.
Transparency and new insights
Traditional supply chains rely on the transfer of information from one siloed stage to another, which is cumbersome, error-prone and time-consuming, particularly in complex chains. A digital supply chain allows information to be available to all in real-time; such transparency boosts speed and efficiency. The data also feeds into advanced analytics, giving rise to better business insights and forecasting.
Digitising the supply chain means key players will have a greater capacity to share data, collaborate on important initiatives and work together to ensure smooth workflows. Since a digitised supply chain is partly based on the centralisation of data storage with multiple access points, people within the stream can access the information and communicate its importance in real-time.
Increased customer satisfaction
Perhaps the most important benefit, customer-centricity is the most desired business outcome of supply chain digitisation. Today’s digital technologies enable the supply chain to become customer-driven, personalised, agile and responsive – leading to an improved customer experience and revenue growth. Smart supply chain leaders focus on the ultimate objective: satisfying the customer.
Move with new talent
Global skills and abilities are changing. As technology continues to advance, the type of talent being developed is evolving as skills gaps become apparent. Traditional training methods will no longer be relevant and business leaders will need to seek out people who are comfortable with modern systems, deep analytics and new technologies. Forward-thinking brands can see where the talent lies in a changing world, and move to take full advantage of it.
Sprint Logistics is a worldwide logistics company providing global supply chain, fulfilment services, distribution, storage, mass-mailing and ecommerce solutions to a wide range of customers. Our vision is to be the best provider of smart, tailored supply chain solutions to clients locally, nationally and internationally.
Contact us today to discuss your requirements and we will provide a bespoke service.