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A Simplified View on Digital Supply Chains

by Jeck
3 years ago
in Business
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In an increasingly digitized world, few business operations remain untouched by digital transformation. Disruptions driven by trade wars and tariffs have catapulted the significance of supply chains.And as disruptions will evolve, we can expect companies to transition to the digital age. Supply chains are networks that bind an organization and the supplier it relies on to develop and distribute specific products. After the pandemic, disruptions in supply chains became an interesting topic. Retailers and manufacturers were out of supply, and people worldwide realized the significance of supply chains. The COVID-19 pandemic was an eye-opener and highlighted the vulnerability of traditional supply chains to sudden disruptions. As a result, companies are increasingly leveraging digital supply chains to thrive in the market. Here are some essential aspects of learning about digital supply chains.

Table of Contents

  • Overview of a Digital Supply Chain
  • The Goal of the Digital Supply Chain
  • Offers more Visibility
  • Significance of Digital Supply Chains
  • A Digital Supply Chain is Faster
  • Digital Supply Chains are Flexible
  • Efficient and Accurate
  • Comply with your Customers’ Demands Effectively
  • Source

Overview of a Digital Supply Chain

A digital supply chain is a type of supply chain based on web-enabled technologies. As we all know, traditional supply chains use a combination of paper-based and IT-enabled processes.However, any good supply chain goes far beyond this hybrid model. One of the key highlights of a digital supply chain is its ability to capitalize on system integration, connectivity and smart components.

The Goal of the Digital Supply Chain

The primary objective of the digital supply chain is to allow insights for increased efficiency. Companies operating via a digital supply chain can reduce the wastage of critical resources while generating higher profits. Organizations with a digital supply chain can move their assets, resources and inventory closer to their customers. A digital supply chain allows companies to decrease expenses by responding proactively.

Offers more Visibility

Compared to a traditional supply chain, a digital supply chain offers betterVisibility. In other words, a company can have real-time Visibility of where their goods are at the present moment. The real-time Visibility of digital supply chains ensures that you collaborate effectively with vendors and suppliers. In addition,Digital supply chains are more customer-centric and can cater to the ever-evolving needs of modern-day consumers. Another key highlight of a digital supply chain is its ability to integrate data with external information. As a result, all your business stakeholders will get end-to-end Visibility into the supply chain.

Significance of Digital Supply Chains

Unlike a traditional supply chain, a digital supply chain functions in real-time. Moreover, it is dynamic and can adapt to the ever-evolving needs of present-day business. In addition,Digital supply chains gather critical insights from the IT infrastructure of companies. As a result, your company can anticipate issues and respond effectively with a digital supply chain.

A Digital Supply Chain is Faster

Nowadays, businesses must adapt and implement newer approaches to distributing goods and services. Adopting a digital supply chain will reduce the overall delivery time. A digital supply chain leverages a forecasting approach. For instance, predictive analysis is an integral component of a digital supply chain. Predictive analysis can offer detailed and precise insights about how fast your goods will move.

Digital Supply Chains are Flexible

Real-time planning implies that businesses can react flexibly to disruptions. One of the key highlights of a digital supply chain is its ability to minimize the planning cycles. Companies can become more responsive to constraints and requirements with a digital supply chain.

Efficient and Accurate

In a digital supply chain, all tasks are automated. In other words, you don’t have to use paper and ink to complete the basic functions. For instance, robots handle the material in a digital supply chainin warehouses. In addition, the digital supply chain leverages newer technologies and ensures that organizations can operate even during critical scenarios.

Comply with your Customers’ Demands Effectively

As we all know, there is a huge demand for individualized products. In simple words, your customer wants you to offer customized products. You can properly comply with your customer’s demands with a digital supply chain. It allows organizations to manage their clients in granular clusters. Companies rely on digital supply chains to improve their brand’s customer experience. A digital supply chain is more transparent. All stakeholders in your organization can have end-to-end Visibility. Companies can access top-level KPIs to function efficiently. Digital supply chains also make offering your users unique goods and services easy. As a result, Digital supply chains are at the epicentre of new business models.

Source

  • https://www.researchgate.net/figure/Traditional-supply-chain-structure_fig1_276198902
  • https://www.researchgate.net/publication/260742754_An_Overview_of_Warehouse_Optimization
Jeck

Jeck

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