DEMYSTIFYING SUPPLY CHAIN DIGITAL TRASFORMATION IN YOUR ORGANISATION: STEP-BY-STEP:

Digitalization is a complex process that covers several major areas of activity. This project can be executed by specialized supply chain solution companies or in-house company specialists. Of course, it’s recommended that you resort to the help of supply chain digitalization professionals who know all ins and outs of this process. Let’s see what has to be done for improving supply chain efficiency.

Step 1. Supply chain digital audit checklist

Make sure to hire a reliable tech partner or use your internal IT department to audit the current state of affairs in your supply chain. Answer the following questions:        

• Do your employees use smart devices and software solutions to automate and facilitate their tasks?
• Is there anything to be improved or updated according to the best practices?
• Are there any technology gaps in business processes?
• Are there any better alternatives to software products being currently used?
• Do you use ERP and other inventory management solutions?
• Do you use AI, ML, VR/AR, and/or blockchain platforms?
• Do you have synchronization of records regarding stocks and other collaborative processes with your suppliers and partners?
• Do you use supply prediction tactics and other smart methods in your practice?
• What are your current investments in digitalization?
• Is your available IT infrastructure well-maintained and kept in good health?
• Do you have IoT-powered systems used in freight, warehousing, and production operations? Are there ways to improve them?

Step 2. Set supply chain performance management KPIs and technology implementation scenarios

Supply chain performance management should provide a complex of parameters to be improved with the help of supply chain digitalization.        

• Identify the KPIs that are expected to be improved through digitalization: freight bill accuracy, inventory turnover rate, warehousing costs, GMROI, delivery time, inventory-to-sales ratio, inventory velocity, and more.
• Draw a scenario of how each of demanded metrics can be improved with the help of software and device solutions.
• Create an architecture of technology solutions intended to improve the given fields and KPIs in your supply chain.
• Consider saving time and money by incorporating ready-made solutions from third-party technology vendors, including Big Data platforms, industrial automation systems, and more.

Step 3. Employ an experienced CTO

Find a person who is experienced and skilled in relevant tech matters, a CTO (chief technology officer) who has worked with industrial automation and supply chains. They can help you deploy a team of technological partners for carrying out tech transformation, including:        

• Create tech specifications for your digital supply chain transformation.
• Find tech partners and software development vendors that can help you with your supply chain digitalization project.
• Deal with contractors and partners; communicate your tech requirements and control execution of project tasks.
• Report to you on the implementation of digital transformation in the supply chain.

Step 4. Hire skilled contractors or outsourcers for supply chain digital transformation

• Use Google or professional directories like GoodFirms and Clutch to find promising vendors.
• Study their case studies and customer reviews : Have they had a successful experience with digital transformation in supply chains?
• Engage your CTO for negotiating with them and find out if they can help.
• Can one vendor fulfill most of your technological demands?
• Make sure they can work in a format convenient and suitable to the scope of your project and the collaboration model you want (dedicated development team , staff augmentation , and so on.)

Summary

Many companies working in the supply chain business demand custom automation and digitalization solutions that best fit their specific needs. A digital transformation is no longer an option but a necessity and vital competitive advantage.

Thanks to the benefits brought by digital transformation to supply chains, companies can quickly yield much more on their investments and keep working with considerably improved efficiency and enhanced financial metrics for a brighter future.