Streamlined supply chain, which helps businesses look beyond tactical order fulfilment and gain a better understanding of future customer needs, can boost sales quickly by delivering the right products at the right time. Today’s decisions about goods and services can have a huge impact on costs, capital availability, and product flows.
The COVID-related limitations in China, ripple effects of the Russia-Ukraine conflict, global chip shortage, and difficulties faced by the companies, all contributed to the most significant overhaul of supply chains in India in the past 20 years. In digitizing a supply chain there is more visibility to detect and minimize threats and integrate planning to create resilient logistics infrastructure.
Cost effectiveness of supply chain
A technology-enabled supply chain can reduce costs by accelerating the smooth movement of materials from suppliers to the plant. A streamlined supply chain, which helps businesses look beyond tactical order fulfillment and gain a better understanding of future customer needs can boost sales quickly by delivering the right products at the right time, resulting in overstocks. According to Ernst & Young, 50–75 per cent of costs are directly influenced by the supply chain, with a digital supply chain system, enterprises can examine their end-to-end value chains and identify levers to improve costs and controls in real-time.
Solutions to tackle uncertainties
According to a report by Gartner, by 2026 more than 75 per cent of commercial supply chain management application vendors will deliver embedded advanced analytics (AA), Artificial Intelligence, and data science for improved decision-making. To meet the ever-evolving needs of supply chain industry, businesses can use new tools to help drive accurate decision-making and forecasting by leveraging integrated Artificial Learning and Machine Learning. With connected planning solutions, supply chain players enhance their efficiency, increase the accuracy of their plans, and foster confident decision-making.
- Supply chain directors may have line-of-sight visibility into every asset, resource, risk, and change across the supply chain with statistical forecasting and integrated algorithms
- Shift decisions from reactive to proactive, anticipating the right moves to optimize revenue, cost, and profit
- Course corrections can be made possible by creating center-to-edge alignment and switching whole networks in a few days, while staying ahead of demand fluctuations and meeting delivery goals
- With interactive supply-demand balancing, supply chain expenses can be viewed and managed using P&L modelling across supply chain networks
Technology for competitive edge
A successful supply chain leader of the future must be tech-savvy in this fast-evolving digital era. They must combine technical and business knowledge with communication skills in order to pave the way for a transformative future. Because the supply chain initiatives cause cross business units, the ability to influence department leaders, who collaborate with the supply chain is critical, as is the ability to interact intelligently with leaders across the organization.
As economic volatility increases, supply chain leaders must adopt end-to-end digitization for real-time insights, increased visibility, and transparency for efficient decision-making.
Adopting tech and viewing it as imperative are a must for supply chain management to remain competitive. Today’s decisions about goods and services can have a big impact on costs, capital availability, and product flows, thus tech aid is essential in every phase of the supply chain process. As it requires details to forecast, plan, and synchronize the activities, the planning stage in supply chain management is the step of the supply chain process that consumes the most data. With the tech adoption, decision-making will be improved to fuel the expansion of digital supply chains in near future.
