A change in the supply chain industry is coming. Are you ready?
According to McKinsey, 93% of senior supply-chain executives from across industries and geographies indicated that they intend to make their supply chains far more flexible, agile, and resilient. In today’s environment, the necessity for modernisation and transformation of supply chains is even more pressing, with the realm of supply chain management undergoing a digital revolution to become the new normal amongst businesses.
At the same time, COVID-19 has shown the vulnerabilities in global supply chains across most, if not all, sectors and industries. The supply chain delays that firms faced during the pandemic remind us how important efficient supply chains are to run a business successfully, and manufacturers around the world are facing increased political and competitive pressures to reassess their supply chains. Supply chains are becoming more global and complex, and disconnected and manual procedures will be unable to keep up.
In order to better plan for the future, leaders must analyse how they can proactively prepare for future unanticipated supply chain and demand shocks. While no one can predict what will happen tomorrow, we can start preparing for future changes by developing smarter global supply chains now.
📌 How the Supply Chain Industry Is Changing: Digitalisation Trends
In today’s era of digitalisation, digital solutions can be found for issues faced in almost any sector or industry. Even in supply chain management, digital solutions that satisfy supply chain management objectives are now available from an ever-growing ecosystem of technology vendors and service providers. Large volumes of unstructured data may be compiled and meaningful insights extracted using powerful and user-friendly analysis tools. Artificial-intelligence software may automatically track performance issues to their core causes, anticipate deterioration, and then suggest corrective actions to management.
In 2022, it is expected that businesses will seek to improve critical supply chain capabilities by adopting more advanced digital enablers, such as cognitive planning and AI-driven predictive analytics, as well as adding greater integrity and visibility into secure supply chains.
📌 Change Management: Effectively Implementing Change Within Your Supply Chain
Only by embracing change and by taking steps to implement change successfully, will organisations be able to fully reap the benefits of a modernised supply chain. The first step towards embracing change is for businesses to first consider why and how they have to modify long-standing supply chain procedures. With the potential benefits in mind, businesses and their stakeholders will be more receptive towards change.
As such, having a forward-thinking mindset is required to have a successful transformation. This entails considering the company's future prospects in light of the pressures and trends that affect its competitive position, as well as changing consumer expectations in an increasingly digital market. It is also important to set goals and expectations in order for change to be effectively implemented, and these goals can include:
1️⃣ Better Decision-Making Abilities
Machine-learning algorithms can make recommendations to supply-chain managers on how to handle certain scenarios, such as adjusting material planning and scheduling in response to new client orders. Advanced analytics may rely on both past and current data to direct decision-makers towards more reliable decisions about what to do in the future by creating data based on strong logic and dependable facts.
2️⃣ Automation
Automated operations can let supply-chain experts focus on more important responsibilities by streamlining their labour. Digital systems may be set up to automatically handle real-time data, removing the need for human data collecting, cleaning, and entry. For example, you might see transport logistics processes that automatically update freight routes based on the latest traffic and weather information. There are endless possibilities as to how automation can lead to real-world implications for businesses.
3️⃣ End-To-End Customer Engagement
For example, track-and-trace systems that deliver precise information about orders throughout the lead time can improve customer experiences by giving supply-chain managers greater control and offering consumers with unparalleled transparency.
With greater knowledge and insight into their own customer journeys, customer satisfaction rates will soar, beyond those of traditional customer engagement methods.
4️⃣ Innovation
A digital supply chain may assist a firm in strengthening its business model. Through a digital supply chain, firms will be able to innovate and expand into new market categories.
By being able to base decisions on data automatically extracted from customers’ systems, businesses can also look forward to collaborating more effectively with their customers and suppliers.
With all these goals in mind, it is important to keep in mind that human talent needs for digitally-connected supply networks might be substantially different from those for traditional supply chains. At least some supply-chain executives will need to have the expertise to be able to convert their business requirements into digital applications.
📌 Ready to Transform Your Supply Chain?
We’re here to help!
With our experienced EDG Certified Consultant, VK Transformation is enthusiastic about helping B2B and B2C businesses accelerate their business model, brand, and marketing. As you and your business go through this supply chain management process, our strategic consulting wing can help you with diagnosis, strategy, and execution.
VKT boasts a proven track record in achieving a high EDG application success rate with up to 80% funding. This maximum support level of up to 80% for the Enterprise Development Grant is valid till 31 March 2022. So wait no longer, and contact us for a virtual coffee chat to discover more about how you may start your supply chain transformation and leverage our expertise!
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