The world of global business is ever evolving thanks to growing technology, increasing consumer demands and ambiguous trends. While businesses understand the need for transformation and new changes in all aspects, Supply Chain somehow lags behind in such transitions. Successful businesses on the other hand that has understood the volatile consumer demands and have put plans in place for adopting disruptive digital supply chain management replacing the traditional Supply Chain systems.
Linear supply chains not effective anymore
A business may have the right product, aimed at the right market, with apt pricing, but any operational inefficiency can be a major disruptive factor leading to reduced scalability. Smart business enterprises have understood the need to replace their linear Supply Chain networks as they are unlikely to compete with digital supply chain management. Digital Supply Chains are unique because they offer enterprises something more than linear systems, to seize new growth opportunities by detecting new customer segments.
The significance of disruptive digital supply chains
From manufacturing to retail and from e-commerce to the service industry, businesses are embracing technology as part of their growing digital transformations. Adoption of disruptive digital supply chain allows businesses an end to end supply chain visibility something amiss in the linear supply chain system.
When a business adopts a disruptive supply chain management everything from analytics, social media, mobility, cloud, cognitive computing, 3D printing, etc. become a coherent part of the Supply Chain Management. Each of such technologies offers a unique insight for businesses to track and evaluate its Supply Chain visibility. For example, the use of cloud technologies and analytics offers Supply Chain managers a tool to check on end-to-end Supply Chain visibility. This helps businesses understand the fastest and more reliable way to offer faster product deliverability across certain areas.
Turning linear supply chain network to a digital one
The traditional methodology of design, plan, source, make, and delivery has increasingly become irrelevant as businesses adopt a digital progression in all areas. To make a synergized platform interconnecting physical flow of information, the enterprise requires a digital supply network. The linear Supply Chain systems of design, plan, source, make and deliver are being replaced by a digital supply chain management network which is more interconnected intelligent, scalable, and rapid.
Customers today have lower brand loyalty due to multiple options available. The core essential for a successful brand building today is to ensure that they are ready to offer consumers a digitally driven experience. The upcoming boom of Internet of Things (IoT) where multiple devices are all interconnected to each other requires a digital transformation at both the back end and the front end including Supply Chain. Eventually, organizations that are slow to opt for a complete digital transformation run a real risk of losing to their rivals and peers in the near future as technology implodes.
Taking a systematic approach is a must once an enterprise decides to adopt disruptive digital Supply Chain Management. For an ideal transformation to digital supply chain management, below are the three core pillars for any enterprise should know.
1: Adopting a long-term vision
Changing a traditional system that has been in place for years requires strong reasons to be transformed. But, industry reports across various sectors have revealed that many enterprises still do not consider a digital transformation of paramount importance. A long vision for a digital transformation in the supply chain system offers solutions for your digital customers and their needs 10 to 15 years down the line.
2: Creating a customized blueprint
A digital Supply Chain Management needs an industry centric blueprint and is customized as per the exact needs of business. For example, the digital supply chain management for a manufacturing company is likely to be uniquely different from a service company or an online retailer. The blueprint should take into account the people involved in the business, processes used, technology as well as governmental or regulatory aspects. If the business has any digital strategic partners on board, the digital supply chain management must have it in mind to develop a synergic Supply Chain ecosystem for the future.
Once the long-term vision of adopting a digital Supply Chain system and a blueprint is ready, the final step involves the actual transformation. The enterprise can then zero in the apt service provider or tasks and technologies to be used for such a transformation. To develop an interconnected system, availing the services of a digital service partner with hands on experience in Digital transformation consulting can ensure a well performing interconnected Supply Chain ecosystem.
Digital technology is the future, and by adopting a disruptive digital Supply Chain, enterprises can save on cost while offering a competitive advantage over their rivals.
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