The correct approach to digital transformation in supply chain involves integration of suitable technologies into revamped operational processes. Digital transformation in supply chain demands combination of operational improvements with speculative changes to be pursued over time.
This assessment is required to consider whether technologies and operations are adequately integrated, and if the end-user has organizational structure and talent strategies to favor innovations and continuous enhancements. Furthermore, the roadmap to digital transformation in supply chain has compressed time frames, due to the easy and quick scale-up abilities of latest digital solutions.
Disparities between actual and potential gains from digital transformation in supply chain are explained by management choices and technology gaps. Gaps in technology implementation have occurred as digital transformation in supply chain operations started to lag after the initial burst in rate of innovation.
This initial crest yielded supply chain technologies that helped companies enhance analytical practices, expand capabilities of particular systems, and streamline routine activities. These technologies have been very valuable, but did not perform the promised sophisticated functions and operations aimed at achieving complete digital transformation in supply chain management.
Technology innovations have taken some time to coalesce into new solutions. However, now that improved digital solutions for supply chain management have been made available, end-users can enhance in their supply chain performances.
Seizing the opportunity to enhance supply chain performances has proven surprisingly challenging for many end-users. These end-users have overlooked the operational changes that would enable them take full advantage of the potential promised by digital technologies.
For instance, companies are upgrading their Enterprise Resource Planning (ERP) to counter declines in supply chain servicing. However, these service levels have continued to decline until end-users reworked operational and analytical processes like demand forecasting.
Operational modifications without complementary technology enhancements are equally problematic as another instance of a large-sized consumer goods provider suggests.
Digital transformation in supply chain and operational changes helped this company enhance service levels. However, the company’s service levels soon reverted to showcasing lag as the infrastructure was not in place to support the digital transformation and changes in operations.
During the ongoing crisis, some easy and economically feasible digital transformation initiatives are helping end-users sustain in the market. For instance, many end-users have started transitioning outdated warehousing and delivery paper processes towards digital variants.
End-users with access to capital are deploying robotics solutions that support labor. Such companies are also adopting Internet of Things (IoT) and sensing technologies for enhanced asset tracking.
Other companies are incorporating the use of advanced analytics to improve supply and demand forecasting accuracies by almost 60%. Companies with resilient supply chain possess higher potential to meet consumer demands in the current shifting market landscape.
Some of the key service providers in the global digital transformation in supply chain market are
Following are some key strategies incorporated by companies competing in the global digital transformation in supply chain market:
Currently, the digital transformation in supply chain market in North America is leading the global market. This dominance may be owed to accelerated adoption of supply chain technologies in manufacturing and consumer electronics industries.
Digital transformation in supply chain market in Southeast Asia Pacific region is expected to record the fastest growth over the forecast period, followed by the Latin American market. Increase in demand for efficient warehousing technologies, especially in India and China, is propelling digital transformation in supply chain in the Asia Pacific region.
The Digital Transformation in Supply Chain market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with market attractiveness as per segment. The market report also maps the qualitative impact of various market factors on market segments and geographies.
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