Digitization in supply chain management

Nowadays, almost all the industries are having a transparency in their management system. Customers are today are more concerned with their efficient delivery process and the mode of accessing of their products. With the advancement of digital technology, there is high demand for supply chain for analysing the real data.

Supply chain-Most of the companies are delivering their products to the respective customers through a standardised process. The marketing branch of the company tries to predict their future sales. As such the ordered products are being prepared for distribution. Moreover, the respective customer will get the information regarding their product and its shipment. As a result, the customer can expect their shipment on time. But, it is necessary for the operation to take place smoothly. This cases are very rare. The data which is necessary for forecasting remains insufficient. In most of the cases, the manufacturing part of any company are functioning independently without the help from the suppliers or other relative partners. Due to inadequate information in any links of the supply chain, none of the links are able to understand the operation of other links and its requirement. This is because of the interruption in the supply chain. However, there can be a huge change in the next few years. This is because, the supply chain itself is undergoing a major change in itself. The supply chain network will go through an organised network. 

Given below are a few of the opportunities that are associated with supply chain management-

The process of capturing data-

In the modern technology, the Internet of Things is being able to make the data available more wide and transparent. Manufacturers of company are now able to gather data with the help of sensors. These data are essential for monitoring the important assets. As a result, data capturing will lower downtime and help the company to manufacture products easily, to meet the demands of their customers. 

In most cases, small transportation can also prove to be helpful in the logistics sector. Data captured makes a transparency in supply chain management. Bar coded products as manufactured by a company can be tracked by both the company and the customer. Moreover, internet of things has also enabled new tracker facility that can track not only the location but also can capture data regarding the temperature, orientation, humidity and all other such variables that can cause an impact on the delivery system.     

The need of analysing data-

The new sources such as e-commerce are providing big data in addition to smart development and other marketing efforts which results in the improvement of process management, product customization, market trend predictions, quality levels and customer personalization. For example, the process of analysing data can help in providing data routes for patterns which in turn can identify more enable routes or other such shortcomings.

The process of integrating data-

The hardest job associated with digitization of supply chain is achieving the significant levels of clarity at all the steps. A data is not contained in a single building. It is necessary to capture the required data and then analyse them effectively in some few steps. The method of integration can be completed in few steps depending upon the following conditions-

 the type of systems involved in integrated planning and its execution

the advanced analytics

the logistics visibility

the smart procurement and the warehousing

4. The process of accessing data-

The integrated units of any supply chain management requires data to be accessed. these data are to be provided to the required customers. With the advanced technology, the data transferring process has also become quite easier. Thus, to keep track on the shipping experiences, accessing data has become an important feature.

5. The process of Interpreting data-

if real time data is achieved, it proves to be better for supply chain management. but, one of the major drawbacks is achieving some accurate data and thus enabling some reliable interpretations. as a result, the digitization have offered the facility of correcting the data automatically and even dealing with any issues in order to facilitate supply chain technology and its reliability.

Some of the important fields that are emerging with respect to supply chain approach-

3D printing in the area of healthcare- the scope of 3D printing in the field of healthcare has undergone a dramatic change with respect to supply chain strategy. The 3D printing concept has occupied an important position in the area of pharmaceutical and healthcare. many production industries like Johnson and Johnson, Invisalign etc. has reached greater heights with time. Moreover, some of the impossible tasks can also be completed through the technology of 3D printing. Thus, this concept is expected to grow with time.

The fast growth of Uberization- When ubers first came into practice, its growth economy was very less which was only about 8%. This technology was considered as a disruptive technology. yet, with time, there is a dramatic change in the uber technology. Though this service is regarded as a non prominent service, yet it managed to occupy its position in digitization. This can be known from the fact that, in two years, the service has more than triple to 27%. 

 Internet of Things, machine learning, digital supply chain are the systems that can fulfill the needs in the future- These technologies are among the most evolving technologies of the overall six technologies. If the data is divided into different sectors, the data from the hi-tech companies, are above than all other companies. These technologies offers  various advantages related to costs, operation of Internet of things, digital supply chain, cloud etc. 

Advancement in the field of cloud computing- Cloud computing came to rise in the years between 2015 and 2016. Data acceptance is general, but when any industry sets a mark in the total data, cloud proves to be advantageous. It is because of the advanced applications system and computing power. cloud comes with many benefits in the technology of software systems. But, its development requires a lot more time.

Digitization is vast nowadays. Transforming everything to digital is in fast progress. there are many things which proves the growth of digitization. advanced robotics, 3D printing, drones, internet of things falls under this category. but, it would have been better, if such technologies were more personalized. the worst part is the capital involved in the maintenance of such equipment. Internet  of things involves operational technology to know the details of the things that are required to be fixed. on the other hand, 3D printing and drones are also required to manufacture the parts. such technologies are very useful for aerospace and relative energy infractures. 

This as a whole gives a wide range of ideas of various technologies involved in digitization. 

Defining a supply chain management is easier. so, it becomes an important factor to know about the benefits of digitizing supply chain. there can be many concrete examples of digitizing a supply network. productivity and growth of work are few benefits of supply chain digitization. along with that few other benefits can also be witness in it. these benefits can be very small in the day to day life. few of such benefits are discussed below-

1. comprehensive integration of solutions involved in supply chain- as the supply chain is a vast approach, companies nowadays often vary in the planning or reporting or production data simultaneously. Digitizing the process of supply chain is a great approach that involves some hurdles starting from the top to the bottom. it requires a well strategic plan to be executed. if such strategy is executed properly, there can be many benefits and as such many faults can be eliminated during the process of reaching the goal. certain benchmarks and goals are needed to be fixed and work should be done accordingly. but, it is very important for the companies to keep a track on such integrated solutions. in this approach, they should be a prey to some unrealistic failures. 

2. it helps in connecting data outlets and sources- the Internet of things has reached its greater heights with time. in recent times, IOT has become an integral part of supply chain management. they have found a greater solution to the problems associated with the supply chain. through IOT, supply chain can be digitized involving operations such as collecting of data, sorting and finally evaluating the data. as a result, it helps the managers or the planners of the company to make some effective planning ideas. the data connection is also helping the managers or planners to deal with some unrelated circumstances which might occur at time of management. on the other hand, the advanced technologies of supply chain involves a far more detailing, that might create some critical situations. as a result, OEMs has to deal with all such issues and complex datasets in this global world.

3. it helps in improving collaboration- digitizing supply chain many not prove to be an easy task. it involves hurdles and few complexities across any organisation. this can also be inferred that, most of the planners can share the data within themselves within the supply chain stream for the smooth functioning of the cycle. this will result in lesser interactions, or other breakdowns or disruptions. a digitized supply chain is a type of central hub that has a lot of data, and can be accessed through multiple points. noone have to wait for days or months to collect or gather data. results can be obtained in a few weeks rather than waiting for months. thus supply chain digitization has proven its benefits for the companies with a little difficulties associated with it. 

One of the important tools involved in digitizing supply chain is to enquire about its benefits and the processes that can create capabilities for implementing and integrating the process for a company. hence, any company should witness the following five major stages-  

to understand the initial position of the company- the company should be able to know about its current position, its level of maturity it undergoes with time. it should also be able to identify the areas that need further improvement and maturity. 

it should be able to define its strategy- the company should be able to set a target for the supply chain management and be able to view the strategies and planning that are involved.

to develop a road-map which is appropriate for its company- the company should be able to define the necessary steps involved and sketch a detailed road map accordingly. 

to develop some small pilots that has end to end scope- there may be many applications that can be helpful in digitizing supply chain. this can be different for different organisations. as a result, many companies have to deal with it with the help of small pilots. these pilots will be able to carry out the necessary steps of the organisation. they will also help in progressing the right capabilities of the company. thus, the pilots can be used in integrating supply chain implementation rather than fixing on a limited set of goals.

the company should segment the capabilities of the rollout and its development- after appointing successful pilots, the company should appoint few rollouts which role is implement supply chain in the areas that has the highest benefits. this rollout can involve  either be some important regions, or customer or some significant criteria for segmentation. such capabilities  that are necessary should advance along with advancement of rollout.

most of the companies in the present day, has reached successful positions in digitizing supply chain. it is very important for the companies to study its starting points in order to organize a specific plan for supply chain digitization. the maturity of supply chain can be witnessed in four stages that are discussed below-

digital novice- at this stage, the companies have to proceed further in the journey of supply chain digitization. the processes involved remains distinct, where the responsible departments or business units are helping in their progress. 

the stage as vertical integrator- the companies at this stage , manages to integrate the various processes of supply chain internally within the company, along with the different departments or functions.

horizontal collaborator- the companies, at this stage have gathered required information that can help the supply chain partners to set up their required goals and objectives so that they can carry out their processes easily and achieve their targets with much transparency in the supply chain management. 

the final stage as digital champion- at this stage, the company has achieved the greatest level in association with their partners and much transparent in their operations. this is done while developing some beneficial processes and important techniques that are required for managing the entire supply chain. 

it is quite a difficult task for the companies to develop an efficient supply chain cycle. this task can be also impossible if the companies do not follow some specific strategic planning. as a result, it is quite impossible for companies to develop a supply chain without a clear idea of the process and applications. the company is fully responsible of successful digitization of supply chain. the company should try to implement the ideas based on their current situation and also on the new evolving business ideas. they should implement such ideas that can be helpful for their company. this technique involves direct sales channels, or any leapfrogging ideas in the field of supply chain digitization. once the company makes a strategic planning, it can carry out its planning. it should also enquire about the necessary application for implementation of planning. thus, the company should carry out its capabilities that involves the following processes-

processes- the company need to start some new end processes that connects the suppliers and the respective customers. This will help in digitization progress easily. examples of such include collaboration on cloud platforms.

management of the company’s performance- the company should necessarily set up some specific rules and regulations that manages the supply chain. as such, the important performance indicators should be measured timely for better results.

developing the organization and its skills- the company needs to understand its various skills that are required for supply chain. the skills such as solving any issues that arises, seeking from the mentality of a firefighter, problems solving by seeking, optimizing or managing the entire supply chain. this can be done with the help of some strong media support. on the other hand, this will also promote communication among the different user groups or programs. however, for such activities, the company has to develop their talent and its experiences,  that are essential for the progessive development of the new supply chain applications and operations. 

the need for partnering- the company need to aim in developing their abilities with the respective partners of the company. this is because a well fledged supply chain cannot be developed alone without the help of the partners or the variety of suppliers, technology providers or even the distributors. 

advanced technology- as already discussed, the company has to develop a road map for the new advanced technologies or the old operations, that might help in digitizing the supply chain. such operations include the integration of the information layer, analytics capabilities and the database, and the cloud.