Creating a Steady Strategy For Supply Chain Transformation
Supply chain change and transformation are inevitable in today’s dynamic world. However, often companies are hesitant to bring changes to their supply chains because of the pressure to upgrade all at once. These concerns often hinder their transformation and keep businesses from unlocking their full potential. According to McKinsey, the average level of digitization in supply chains is 43%, which is lower than in many other business areas.
Added to the pressure is that there have been too many innovations coming into the supply chain industry that have quickly become buzzwords, alienating many companies from even considering their implementation. The logistics and supply chain industry involve massive and complex ecosystems that in no way can be transformed overnight.
Rather than flashy solutions, the key to beneficial supply chain evolution is steady and gradual steps, guided by a clear and consistent supply chain strategy. It is important to keep in mind that without making changes to operational processes, it will be challenging for a business to fully leverage technology.
Digital transformation: how it changes supply chains
Supply chain technologies have been evolving in many directions, focusing on gathering and collecting data, automating operations, and improving decision-making. Ultimately, any innovation that a company will implement into its digitalization strategy will need to bring better operational efficiency, service quality, data insights, and lower costs.
When talking about supply chain digital evolution, it is important to note that it went from adopting many different tools and technologies for upgrading separate parts or functions of a supply chain, to seeking a centralized approach that uses innovations to optimize as many processes as possible, enabling superior decision-making. This requires cross-functional data exchange, as many valuable insights can be extracted only when there are multiple layers of data from different sources and types.
Supply chains are also getting more complex than ever. With more connected devices and spaces, volumes of various types of data are being accumulated, whichcreates an additional need to process and analyze it in a comprehensive and integrated way.
Step-by-step roadmap: transforming your supply chain without disrupting it
Supply chain transformation is necessary, but it can only be successful when it’s gradual and well-thought out. Without a specified and clear roadmap, it will be impossible to bring steady and continuous improvement across the supply chain.
Recognize the gradual nature of supply chain transformation
The key to success here is that digital strategy matches the organizational strategy and vision of a company. The technological component must be in line with operations, so the first step to transforming a supply chain without disrupting it is creating a vision with the key parts that require change and improvement. Depending on the industry and the nature of the supply chain, these can be diverse goals, so it is critical to align them with current business needs.
Carefully assess your supply chain
Before deciding on any changes and implementing new technology, it is vital to critically assess supply chain capabilities. Taking a look at the software that’s already in place and detecting areas where digitalization is most needed will be beneficial to forming an upgrade plan. It’s then crucial to estimate supply chain processes and identify possible bottlenecks.
Finally the most important factor – data. Where does it come from, how is it processed, how transparent is it, and are all the data sources integrated? In today’s data-driven world, efficiency is where there is clear and robust data infrastructure.
Follow a strategy
To be relevant and competitive, companies have to follow a roadmap to successfully transform their supply chains. Once there is a clear vision and a comprehensive assessment of the company’s current technology capabilities, data infrastructure, and operational processes, the next step is to follow the outlined strategy.
Wrapping Up
Ultimately, supply chain transformation shouldn’t be a disruption. When choosing a software solution, a tech tool, or data infrastructure, a gradual approach will bring scale and long-term results. The implementation process should be conducted in a step-by-step manner, slowly bringing transformation to separate areas of the supply chain. Skilled supply chain solution providers like Agistix help businesses evolve without disruption and stress. Our robust data infrastructure supports different data interfaces and formats, enabling a non-disruptive and efficient change for our clients. Learn more about Agistix solutions here.
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Author
Trevor Read
President at Agistix based in San Francisco. I am an entrepreneur with a passion for data, and technology. I am results-oriented and committed to developing fast-deployment solutions to help customers seize the new opportunity coming from big data in the global supply chain.
