Why Digital Supply Chain?

Today most organizations operate on hybrid supply chain models that combine old style paper-based and IT-supported processes. As paper-based information is only available locally, organizational design is largely based on local factories or branches serving local customers. In large and multinational retail companies, there are often hundreds of IT applications supporting supply chain processes, leading to very ling implementation cycles and extremely high maintenance costs. 

Hybrid supply chain has following disadvantages:

• Lack of Transparency - There is no single version of truth
• Non-Agility - The reporting agility is very slow
• Sub Optimal use of locations - Warehouse optimization is below par

Although these retailers may use IT-enabled automation, it does not necessarily go beyond a specific business function or a local business unit, still leaving processes siloed.

What is Digital Business?

Digitization is not about IT, it transforms businesses. A digital business model uses new era technology to create new streams of revenue and business value. It is about the use of combinations of technologies to sense changes in real-time and shape a meaningful output. 

• B2C models are well defined and supply chain models have embraced and redefined eCommerce delivery however B2B processes lag B2C
• Today only 9% of B2B commerce flows thru business networks. Companies have been slow to adopt new forms of B2B

Characteristics of Digital Supply Chain Processes

• Real Time Data
• Cloud Based Deployment with continuous adaptation
• Pro-active – Sensing based on IOT, adaptation based on cognitive learning

Best Practices

• Encourage cross channel collaboration
• Data sharing, cross channel integration between upstream and downstream business partners
• Standardized business processes
• Enable data collection and digitization thru the entire process
• Capture data throughout supply chain network to support high level transparency
• Predictive supply chain analysis and optimization through big data
• Setup supply chain governance model based on data analysis

Advantages of Digital Supply Chain

Better Demand Forecasting and Planning - It allows for integration of big data and predictive analytics

More Efficient Network and Routing Optimization - It enhances integration of big data and predictive, external interfacing for automated updating of capacities and schedules and allows for integration with advanced buying systems 

Digitization of Freight Document Handling and Archiving