Business Magazine

Is Your Supply Chain Ready for a Digital Economy? How Digital Supply Chains Are Changing Business

Posted on the 15 October 2019 by Litcom

How do supply chain leaders build and maintain resilient supply chains in a complex global environment, with operations spread across continents ― each with different dynamics? By developing and adopting robust supply chain strategies, agile and flexible enough to respond to rapid changes in the business landscape.

Conventional supply chain operations and processes cannot meet the complex requirements of today’s digital-first economy. In today’s globalized and digital economy, a well-aligned supply chain strategy can not only support business strategy but also drive it.

A digital supply chain can help your organization unlock greater opportunities and value as well as create a strategic competitive advantage.

As consumers increasingly turn to digital platforms to make purchases and compare options, the B2B sphere is experiencing a transformation. The internet and e-commerce are changing the way we do business, and those in the manufacturing and industrial sphere have much to gain.

As technology expands and the Internet of Things becomes increasingly prevalent, a digitized supply chain strategy is permeating the core of business operations. Today’s high-tech organizations must adapt – speed and accuracy are crucial, and collaboration is more important than ever. The right digital tools are the key to developing an extended, fast supply chain process.

Ultimately, however, everything comes down to the efficient use of data in decision making and communication, improving overall business performance, and opening a whole new world of opportunities and competitive differentiation.

The Changing Horizon of Supply Chains in Technology

Supply chain management now extends further than ever before. Until recently, the task for supply chains was simple: Organizations developed ideas, produced goods, and shipped them to distribution points, with cost efficiency as one of the most prevalent factors. As the supply chain evolves into extended supply chain management, however, organizations must plan beyond these simple steps.

New products need to hit markets much faster, and customers expect premium service and collaboration. Increasingly, the supply chain must meet rapidly changing consumer demands and respond accordingly.

What Is the Extended Supply Chain?

The extended supply chain refers to widening the scope of supply chain planning and execution, not only across internal organizations, but beyond an organization’s boundaries. Organizations must involve several tiers of suppliers, manufacturers, distributors, and customers. Some businesses also study the popularity and dynamics of a product directly, such as through mining social media data. To lead the competition, modern businesses must orchestrate the extended supply chain to keep up with consumer demands, as consumers now look for fully integrated service experiences.

What Makes the Supply Chain Work in Extended Form?

There are several key factors to consider when updating your supply chain model. The first, access to information, is essential to managing digitized extended supply chains and unleashes benefits that can help your organization grow beyond traditional models. All organizations gather information, but organizations that use this information effectively will excel where others do not.

Digitizing the supply chain process can help manage even an extended, complex network and provide key access to critical information. The success of digitization relies on gathering accurate, pertinent information in a format that can be readily applied and used.  While speed is important, it is not enough. The information itself must be applicable to the organization’s needs and it must provide data that allows organizations to make more informed decisions about product growth, marketing, and supply chain distribution.

Real-time information access is a primary benefit of digitized supply chains. Market trends become instantly visible with real-time data and cloud-based analytics. This insight allows organizations to plan for new products and platform development as the market shifts. Eliminating the need to wait weeks or months to access and analyze data is critical for the high-speed technology market and allows for assessment of critical situations. Resolving problems as they occur is more efficient and allows organizations to act rather than react.

Consolidation of digital information is another major benefit to the digitized supply chain. Localized digital information can be gathered and analyzed to form executable action plans. Data becomes part of the planning and problem-solving cycle, improving overall communication and allowing for fuller, more meaningful problem-solving and planning. With digitization, speed is a factor, but the relevancy and application of information separates successful organizations from the pack. For organizations looking to extend their supply chain, this is a key element when searching analysis tools and platforms.

The Litcom approach

Litcom’s Integrated Digital Strategy focuses on helping organizations leverage technology to transform themselves by enabling the end-to-end processes representing the organization’s value chain.

An effective Integrated Digital Strategy supports the Business Strategy by aligning the strategies for each area of the company.  Litcom’s approach is based on a fundamental principle: the company’s business intent and objectives drive everything.

We work with you to:

  • Review your business strategy and goals;
  • Understand your digital capabilities – both human and technological;
  • Design your digital model and processes – leveraging industry best practices;
  • Determine the necessary sources (people, technology, organization) to support the digital strategy implementation; and
  • Establish the digital strategy principles, governance model and roadmap.

Contact us today for additional information.

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