Understanding Digital Supply Chains

Digital transformation is forcing businesses to rethink how they manage their supply chains. But what exactly is a digital supply chain and why does your company need one?

The supply chain must be one of the most overused business terms in history, with even more confused interpretations.

 In fact, you will find many definitions of what a supply chain is, depending on the industry or company you ask.

Some see it as an expansive network of suppliers, others see it as a group of people with similar interests, and still others use it as a synonym for logistics.

In this newsletter, we’ll explain everything you need to know about digital supply chains and why they are essential for businesses today.

What is a Digital Supply Chain?

A digital supply chain is a scalable, automated system for managing the flow of goods, information and payments between an organisation and its suppliers.

The core idea behind the digital supply chain is the interconnection of business processes across organisational boundaries.

In other words, businesses that integrate their processes with those of their partners to generate a more efficient, end-to-end supply chain.

In the past, organisations had to maintain siloed systems for managing procurement, inventory, sales, shipping and other supply chain functions.

But digitization has enabled them to integrate these systems, which is essential to creating a seamless customer experience across all touchpoints.

An end-to-end digital supply chain system allows buyers to seamlessly source parts and materials from suppliers, track their progress through the production process and seamlessly deliver them to the customer. This improves efficiency, visibility and the overall customer experience.

Why is Digital Supply Chain Important?

Organisations today are seeing a rise in demand for customised product offerings, which drives a need for greater customisation in the supply chain.

However, the traditional supply chain is slow and expensive to implement these changes.

These issues can be overcome by integrating digital technologies with the supply chain. This integration will help companies make changes to the supply chain in real-time, which is important to meet customer demand.

You can also use digital technologies to create sensor-driven forecasting that enables you to customise production based on actual demand. This gives you greater control over the supply chain, which will give you an advantage over competitors.

How Does Building a Digital Supply Chain Look Like?

There are three steps to building a successful digital supply chain: Planning, implementation, and monitoring.

Planning:

Before you start building your digital supply chain, you must first determine your company’s specific needs.

You can do so by creating a supply chain map that illustrates all the processes involved in keeping your supply chain running efficiently. With this map, you’ll be able to identify any inefficiencies in your current system and understand how a digital supply chain can solve these issues.

Building the supply chain

Next, you must decide on the technologies and tools you will use to build your digital supply chain. Start by developing a roadmap to map out your goals and timeline for implementation so you can stay on track.

It is also crucial to also remember that the digital supply chain is not a “one size fits all” solution. You need to carefully select the technologies that are best for your organisation.

Tools such as SAP Digital Integrated Business Planning (IBP) enable businesses to become intelligent enterprises by making planning Easier, Faster and Smarter.

Key Takeaway

The supply chain is the process of moving materials and finished goods from where they are sourced to where they are needed at the right time and in the right amount.

Digital transformation is forcing businesses to rethink how they manage their supply chains.

They are transforming their supply chains from a linear process to a digital, end-to-end system that is seamless for customers.

If you want your company to succeed, you must embrace digital transformation and implement the digital supply chain. This will help you achieve greater efficiency, gain better control over your operations, and provide a better experience for customers.

Are you ready to invest in digital supply chains to bolster the resilience and agility required to remain in business or find yourself out of business in 2023?

Visit our website for more information.