The digitalization of the supply chain is essential for the future of the Purchasing sector. A survey conducted by Gartner showed that digital transformation is a focus for the sector, which sees the use of new technologies as a way to stay ahead of the competition.
In this way, the rapid advancement of new technologies aimed at Purchasing is transforming the traditional supply chain and adding more value to businesses. According to Delloite, strategic sourcing, for example, is becoming more predictive and making traditional supply chain processes more efficient. automated purchases and proactive supplier management.
This transformation is only possible through the integration of more intelligent processes, which have access to information captured throughout the supply chain and allow for more complex analyses, and which deliver more intelligence and efficiency to the Purchasing sector.
A look into the past
Basically, the supply chain Analog has its processes carried out manually. Orders were/are placed by telephone, fax or by means of letters or emails and all requirements were manually entered into spreadsheets or systems.
Once the order was placed, the sellers would forward the request to the warehouse by telephone, email or even in person, and contact the carriers so that the products could be collected and sent to the buyer.
Invoices were sent by post and payment was normally made by check or transfer, which had to be made directly at the cashier (or via internet banking).
All logistics monitoring was done based on manual records, from the moment the product left the warehouse until its delivery. Errors were common, as were delays or problems with product shortages.
The digital supply chain
As incredible as it may sound, many of these processes still exist, but they are, albeit slowly, being replaced by the digital supply chain.
The transformation is the result of the use of new technologies throughout the supply chain, enabling greater connectivity, analysis, automation and intelligence in processes, reducing the use of paper and manual data entry.
For Gartner, the next three to five years should mark the massive adoption of new technologies in the sector, with the adoption of systems that allow greater visibility over all processes and integration between companies and suppliers.
Thus, it is possible to define the digital supply chain as the adoption of new data-based technologies to strengthen and integrate the supply chain, making it more agile and resilient.
Challenges in making the supply chain digital
A the digital and sustainable transformation It is a term that is in fashion and it is difficult to find a company that is not thinking about the subject, however, its implementation can be a great challenge if there is no planning.
There is no point in investing in a digital transformation strategy if there is no real desire for change within the company, and this also involves integrating suppliers into the discussion, as they will also be impacted, as processes will be reviewed.
This means analyzing the company's needs, what resources are needed to meet those needs, looking for the most appropriate technology and finding the best supplier. In other words, understanding what is desired with digital transformation and how to achieve it.
The next step is to understand how to measure the success of the strategy. And the best metric is the one that analyzes the level of adoption of technologies, such as active user usage. Low adoption may indicate that the tools are difficult or simply inefficient.
Another metric is the one that monitors workforce productivity. It is important to calculate the time a process took to be completed before and after digitalization, for example, the average time to fulfill a purchase requisition, and whether process automation allows professionals to work strategically.
After all, supply chain digitalization aims to provide the best visibility into purchasing, inventory and supply chain processes.
Furthermore, it must create greater control over the entire purchasing cycle, making the risk management more efficient and ensuring greater integration between the operation, its processes and technologies with the company's objectives.
To ensure the success of the digital supply chain, your company needs to rely on reliable data, and COSTDRIVERS is data specialist. Speak to one of our representatives and find out more.