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Digital Transformation To Boost Supply Chain Efficiency

Posted By : Anirudh Bhardwaj | January 16, 2024

With an ever-evolving technology landscape, enterprises are looking for new ways to enhance their supply chain efficiency. Besides, continuously growing customer needs, global supply bases, and ever-changing market conditions are driving businesses to upgrade their supply chains to stay competitive. For a manufacturing or eCommerce business to grow and succeed in today’s business landscape, it is crucial to have an agile and well-managed supply chain. 

We are an ERP development company that provides supply chain software development services, enabling businesses to gain better visibility in their supply chain operations. Our custom supply chain solutions enable businesses to enhance their delivery capacity and automate procurement management. 

In this blog post, we shall examine the top factors that indicate it’s time for a supply chain transformation. 

 

supply chain transformation

Also, Read Supply Chain 4.0: Revolutionizing The Future of Logistics

 

The Key Indicators for a Supply Chain Transformation

Below are the key indicators that point toward the growing need for digital transformation across the supply chain. 

 

Misalignment Between The Key Functions

The communication breakdown between the internal managers included in the supply chain processes and consumers is a key indication that it’s time to digitally transform your supply chain processes.

 

Increasing Complexity In Sales and Operations Planning

The complexity in sales and operations planning increases when there is an updated regulation or a market expansion. Sales and operations planning may slow down with the growth of the business. It’s time to redesign supply chain processes if the planners are not able to reduce the time to complete the cycle despite making updates to existing processes.

 

Onboarding New Planners Is Complex

When supply chain processes become too complicated that the business is reluctant to hire an outsider, it is time for a supply chain transformation. In such situations, recruiters believe that instead of hiring new resources, it is better to deploy an existing employee to understand the intricacies of the supply chain planning system. 

 

Increasing Customer Dissatisfaction

Increasing customer dissatisfaction is a clear indication that it’s time for a supply chain transformation. To improve customer loyalty and increase their retention, real-time visibility across the supply chain is essential. Real-time visibility will enable business managers to identify potential disruptions like late deliveries across the supply chain, thus increasing customer satisfaction. 

 

Also, Read Supply Chain Software Development For The F&B Industry

 

Technology Trends Accelerating Supply Chain Processes

In the following section, we highlight the key technology trends that accelerate supply chain processes within a business or industry. 

 

Digital Twins

Digital Twins technology enables supply chain managers to create a mirror of their internal and external supply chain processes. From inventory optimization to forecasting and testing operations, digital twins can be used for a multitude of reasons.

The use cases for digital twins in logistics and supply chain are vast. For instance, in the shipment sector, digital twins can be used to collect product and packaging data. The information can be used further to identify potential disruptions in the supply chain. 

Digital twins technology can also be used in warehouses to create accurate 3D models of their centers and experiment with a new technology or change the layout to see its impact. In addition, businesses use this technology to provide real-time information that will improve delivery times and assist autonomous vehicles in their routes. 

 

Smart Inventory and Forecasting

Using Artificial Intelligence (AI) technology can bring a major transformation across most supply chain operations. For instance, the use of AI technology allows store managers to predict which products are most cost-efficient to stock in a warehouse based on its proximity. 

AI-enabled supply chain enables businesses to accurately predict demand spikes and adjust routes of product flows accordingly. For instance, businesses can use AI to gather comprehensive data (weather patterns and reroutes) that may affect delivery times. These details will notify store managers of real-time inventory adjustments. 

For accurate demand forecasting and smart inventory planning, businesses use frameworks like Frepple and Helical.

Frepple is an integrated open-source application framework that facilitates advanced planning capabilities. At Oodles, we use Frepple for inventory planning and demand forecasting. Let’s have a detailed overview:

 

Inventory Planning: We use Frepple to compute safety stocks and reorder quantities for intermediate products, raw materials, and end products.

 

Demand Forecasting: Accurate sales forecast is the cornerstone for all planning processes. Demand forecasting enables business planners and sales teams to work together and establish a sales forecast for the future. Frepple uses advanced time series algorithms to gather demand history. The detailed information enables businesses to review and adjust the sales forecast.

 

Also, Read The Importance of Data Analytics In Supply Chain Management

 

Multi-party Networks

Moving towards a multi-enterprise or a network-based solution is the latest trend for supply chain transformation. It will be more apparent with processes like order-to-cash and procure-to-pay. Multi-party networks facilitate collaborative planning and execution across multiple tiers of the supply chain. These networks are going to come to prominence as they extend visibility and collaboration outside the enterprise ‘cubicle’.

With the increase in customer demand, the supply chain is evolving from having a functional orientation to a global network of processes. Next-gen technologies like digital twins, artificial intelligence, machine learning, and IoT are driving supply chain transformation to unprecedented levels. 

 

At Oodles, we provide supply chain management software development services that enable businesses to manage their supply chain networks efficiently. Our developers build comprehensive and flexible supply chain software solutions to automate the logistics process and optimize supply chain operations. For more details, drop us a line at [email protected]

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