Digital Transformation, much talked about in other segments of the economy, has also reached the supply chain, along with artificial intelligence and Blockchain. But it is important to realize that caution and a lot of analysis are needed before connecting to the world and sharing business data.
Despite the efforts made by companies to improve performance, few have actually invested in Digital Transformation. According to McKinsey, only 2% of the executives interviewed by the consultancy said that the supply chain is the focus of digital strategies. McKinsey itself states that companies that invest in digitalization can, on average, expect an increase in revenue of around 3,2% per year.
The best approach is to simultaneously invest in new technologies and make changes to the processes that will be affected by the implementation of these solutions. Cutting-edge technologies must be integrated into renewed operations/processes. Without this, results will be below expectations.
With Digital Transformation, the approach is also different, with new resources, and it is necessary to evaluate whether this integration – between technology and operation – is functional and whether the company has an organizational structure that accepts innovation and the changes that this can cause.
Technology in action
If the supply chain was one of the first to be technologically updated, with applications designed to take advantage of data generated by ERP systems, these tools did not offer resources for managing the processes involved, so that planning could be more precise and so that problems could be anticipated and avoided.
Today, there are a myriad of new technologies and vendors offering solutions that meet these exact needs. Analytical tools and artificial intelligence applications that compile large data sets and extract useful insights for the business.
These technologies enable companies to transform the way their supply chains operate. Digital Transformation in the sector helps to create a vision of how digitalization can improve service levels, cost, productivity and inventory management, as well as implement organizational and process changes.
But improving supply chain performance isn’t just about buying or installing new technology. It requires a collaborative effort that involves changing the way teams share information and make decisions.
An effective Digital Transformation
Transformation depends on the company’s perspectives and customer expectations. While the supply chain is aligned with the company’s objectives, these objectives now respond to the pressures and opportunities that a digitalized economy offers.
When a company views its supply chain as something strategic, it needs to be aware of the following factors:
– Machines can offer recommendations on how to deal with new situations, such as changing planning according to new customer requests
– By automating an operation, it is possible to streamline the work of professionals involved in the processes so that they can engage in more productive and valuable activities for the company.
– Technology allows us to improve customer relationships and experience. Offering customers more transparency and personalization
– New business models can be created or strengthened with a digital supply chain
COSTDRIVERS helps your company to evaluate market data strategically with a platform that brings together accurate information to aid decision making. Contact Us and find out how we can help your company achieve the best results.
