A digital transformation approach to supply chain resilience
31 January 2023
The ability of a supply chain manager to anticipate disruptions is crucial. The economy, geopolitics, climate change, public health, and other factors continue to unpredictably alter global supply chains. Today, one of the job requirements for supply chain managers is the ability to predict the future.
Supply chain managers need to be proactive about preparing for the future and making sure they have the right technology to help their business run in light of these obstacles. Businesses could boost their agility and adaptability by improving their current procedures as a result of digital transformation.
During the “Build a Sustainable Future for Your Supply Chain and Your Business” panel at Oracle CloudWorld 2022 in Las Vegas, Suzano de Papel e Celulose (Suzano), based in Sao Paulo, relied on a digital transformation to improve its supply chain resilience, according to Jefferson Mansano Ticianelli, a digital transformation executive at the company.
According to Ticianelli, business units have traditionally worked independently. Suzano started a global project as part of its digital transformation efforts to improve supply chain visibility and address compliance, customer experience, employee experience, and productivity.
Scenario planning as part of a digital transformation Supply chain managers can look for tools that can help them improve their ability to plan scenarios as part of a significant digital transformation.
During the “Key Best Practices to Advance Your Supply Chain Planning Strategy” panel at Oracle CloudWorld 2022, Moshin Lee, vice president of supply chain planning product management at Oracle, stated,
In a period of ongoing disruptions, scenario planning is essential to proactive supply chain management and enables supply chain managers to make better predictions.
Lee stated that scenario analysis can aid in the rapid identification of potential disruptions and growth areas. Additionally, considering multiple options simultaneously is essential for the most efficient scenario planning.
Planning for both is rational in a world where disruption is the norm rather than the exception.
Guilliean Pacheco covers CIO strategy, digital transformation, and sustainability as an associate site editor. She worked as a freelance writer and copy editor prior to joining TechTarget.
Digitization has addressed all parts of organizations, including supply chains. Companies have been able to transform their traditional supply chain structures, which consisted of a mix of paper-based and IT-supported processes, into digital models that are more agile, flexible, open, and collaborative with embedded sensors, GPS, and RFID.
Supply chain management innovation is accelerated by digital transformation, which enables organizational flexibility and automates business processes. It is essential for businesses to incorporate digitized supply chain models into their overall business model and organizational structure in order to get the most out of them.
Nearshoring and regionalizing supply chains, for example, were mentioned by 93% of executives in a Mckinsey survey of supply chain executives as plans to improve resilience.
In order to increase agility, efficiency, and visibility, businesses are unquestionably willing to digitize their supply chain management from the conventional method. In light of this, let’s take a deeper look at what digital supply chain management is and how it differs from a conventional supply chain.
How does a digital supply chain work?
The flow of goods and services in a typical supply chain involves designing and manufacturing a product, estimating demand, arranging sales channels and logistics, and finally giving customers visibility into their orders.
A computerized store network, conversely, gives essentially greater perceivability into the functions of the chain. It is the method involved with coordinating and applying progressed computerized innovations into production network tasks, from acquisition information, stock administration to transportation and circulation. For instance, when cargo is in transit, Bluetooth Low Energy (BLE) asset tracking can provide immediate location updates.
The ultimate objective of supply chain digitization is to make it possible to gain insights that will lead to increased profits and improved efficiency. By anticipating transportation and manufacturing risks, digital supply chain transformation companies can better move their resources, people, assets, and inventory to where they are needed at any given time and reduce costs.