An organization’s success depends on the efficiency of its supply chain to deliver goods and services to meet specific customer requirements. Supply Chains today rely on digital technologies to ensure accuracy, delivery, and optimization. According to a McKinsey study (February 2017), the average supply chain has a digitization level of 43 percent. Let’s explore how digital supply chains are increasing the operational efficiency of businesses.
We are an ERP development company that builds custom algorithms to predict and produce the optimum product quantity to prevent surplus and meet customer requirements.
Digitization Trends in Supply Chain Management
Internet of Things (IoT): Supply chain integrated with IoT enables businesses to drive information related to transportation management in real-time.
Big Data Analytics: Using big data, businesses can gather and analyze data provided by different sources from diverse stakeholders in the supply chain.
GPS Tracking and RFID Technology: Businesses can increase supply chain transparency and traceability by gathering data in real-time.
Cloud Architecture: It connects and integrates transportation management network and exchanges data efficiently irrespective of location and time.
Digital Supply Chains Strategies
Predictive analytics enables businesses to anticipate anomalies through their supply chain networks. The leading practice for a predictive business is to build and manage networks of digital twins. Businesses can use IoT sensors to maintain a direct connection between a product or asset.
Using digital twin technology, businesses can gain a 360-degree view of their entire network’s equipment, assets, and products.
Predictive analytics enables enterprises to keep pace with the growing business complexities and rapid change.
* Businesses can address issues before they become major concerns
* Realigning manufacturing for adjusting sentiment analysis
* Fixing machines before their breakdown
* Adjusting shipments to avoid weather issues and traffic
Power Business Intelligence (BI) brings the predictive power of advanced analytics that enables business managers to create predictive models from their data. BI enables enterprises to make data-based decisions across all aspects of their business.
Automating supply chain has a plethora of benefits including reduced manual effort, increased productivity and efficiency. From robotics and autonomous forklifts in the warehouse to drones delivering goods, automation is now spread everywhere across the supply chain. Manufacturing businesses can use smart sensors that provide real-time data to assist in the automatic routing of products to the next cell in the production process.
Using smart automation, businesses can retool their distribution and delivery processes. Initially seen as cost centers, distribution centers are now viewed as strategic assets that can present a competitive advantage for enterprises. Businesses are also using 3D printing technology to generate products on demand.
In addition to the automation, responsiveness, and individualization required to achieve success in the digital economy, it is critical for businesses to provide real-time visibility across the extended supply chain. Supply chain visibility enables businesses to track everything- from the movement of goods in production to demand signals and relevant data from point-of-sale systems and other sources.
Using next-gen technologies, businesses can forecast weather patterns and view traffic updates that can affect sales and deliveries or cause supply chain disruptions.
Key Benefits of Visibility:
* Reduce exposure when performing product recalls
* Ensure ethical product sourcing
* Streamline and automate cross border transactions
* Improve compliance and sustainability across the global supply chain
Digital supply chains can redefine an organization’s ability to manage the supply chain for reliability, agility, and efficiency. In addition, digitization will bring transparency and visibility into supply chain operations.
At Oodles, we provide supply chain software development services to increase profits, optimize procurement management, improve process transparency and save time and resources. We deliver a wide range of supply chain solutions that include:
* Order Management System
* Procurement Management System
* Asset Tracking Solutions
* EDI Software Development
* Shipping and Logistics Software Development
* Smart Supply Chain Software Development
Connect with our ERP team to schedule a discussion!
To Read Next: Improving Supply Chain Visibility in Apparel Industry