Digitization in the supply chain - Need of the hour
Posted On November 11, 2020
Conventional predicting models are based on historical trends and time series and work no more at this time. The pandemic is considered as a wake-up call in this regard. Predictive capability enabled by machine learning (ML) algorithms and artificial intelligence (AI) desires to be a vital part of demand planning capabilities. Digital collaborative platforms relating the last mile channel partner closest to the customer are required to boost predictive capabilities. From deploying AI/ML solutions to setting standards, manufacturing must deal with many focus areas.
Cutting supply chain difficulty usually starts with lessening the focus to fewer core products with a high consumer value proposition, at the same time, retaining a bulk share of the revenue. The existing transactional data can be grasped to build analytical models that assist in simplifying the product portfolio, identifying must sell SKUs by markets, micro-markets, and channels, and reforming the inventory norms and distribution flow paths for the retained portfolio. Organizations must install digital technology solutions that give end-to-end visibility and association across the extended value chain, connecting critical first to third-tier suppliers with the retailer base or last level channel. A few FMCG companies have turned this continuing crisis into an opportunity by intensifying their e-commerce, enabling a digital, contactless salesforce powered through virtual order taking, deep-learning analytics, and near real-time delivery tracking.
To augment visibility, it is also crucial for organizations to be allied to a particular definition of supply-chain performance across the chain through critical supply-chain KPIs so that it can be real-time tracked. These KPIs must then produce predictive triggers to deal with stress points in the complete supply chain.
Organizations require establishing a scenario-based planning competence to coordinate supply fulfillment in an extremely dynamic and growing demand environment. Instead of monthly, daily, and weekly planning, tighter feedback loops between planning and execution cycles are essential. It is only possible when there are digitally-enabled decision-making platforms.
These days logistics has become an enormously customer-centric function with strict necessities on turnaround time and plan adherence. So, the traditional (Carrying and Forwarding Agent )CFA model has mostly remained ancient. The asset utilization needs to be efficient through optimization and IoT-enabled track-and-trace systems. With the use of connected devices and intelligent asset tracking tools, a digitally accredit smart logistics solution can bring end-to-end visibility in the supply chain. Thus this helps progress the way companies control inventory and assets, transport goods, and manage the customer experience.
The way to a future-ready digital supply chain is not simple. The way to a future-ready digital supply chain is not simple. Businesses that are at the back of the digital curve, in trying to handle these complexities immediately are struggling to determine demand, achieve visibility, and create more flexibility by renewing their obsolete systems. The need of the hour is a constant digital suite which is customizable and simple to bolt on to the existing technology background in a cost-effective and agile manner. This agile technology execution needs to happen hand-in-hand with the process renovation so that the entire business is geared up for this digital change.
The pandemic has augmented the pace of implementing digital supply-chain solutions, unlocking noteworthy top- & bottom-line value. A digitally-enabled supply chain needs no longer constrained to large organizations. It is the need of the hour.
Global Supply Chain Analytics Market Report