Digitization - Need of Supply Chain

Supply Chain Re-modelling is the thought which the whole industry shares right now. Trying to improve the visibility of their supply chain, targeting to counter the impact of COVID-19.

There is reduction of the intermediaries in the supply chain as the producers are directly trying to sell to the consumers in this rapid digitization. The threat of intermediaries is reduced as more than 50 percent of the producers are adopting direct-to-consumer channels.

The use of technology in this digitization will be helpful in this pandemic in order to count on the unexpected. It will be helpful in other scenarios as well:

1-      Trade war (e.g. US-China)

2-      Strikes of war or terrorism (e.g. Syria)

3-      Regulatory change

4-      Labour dispute

5-      Increased Demand

6-      Supplier bankruptcy

Companies aiming for efficiency and in the field of machinery, metallurgy, mining and oil and gas are constantly involved in organizational changes. In the context of a crisis they will continue doing it, but we must not expect significant economic effects from these changes. So they must start speeding up their digital transformation.

To survive in such a digitalized era, retailers and distributors need to equip themselves with powerful tools that you can not only overcome supply chain disintermediation but become an inevitable part of the chain. In the era of automated warehouses and delivery drones, there is a need to use the right technology and innovation.