Lately, there has been a lot of talk about the future of the supply chain - with much of it centered on the many benefits of digitalization. Different companies across various industries are maturing more rapidly than others when it comes to adopting new and cutting-edge technology, software and systems. But, regardless of where in the development stage organizations are - whether they have pioneered the transition in their segment or are lagging behind with manual, traditional processes - it is all but impossible to ignore the rising prominence of this trend. And whether a manager believes transitioning to a digital supply chain would help or complicate operations, the reality is that it is eventually going to happen one way or another.
Therefore, the businesses that want to stay abreast of emerging trends and gain an edge over competitors would be best served by taking the necessary measures to respond to these changes and adjust their operations accordingly.
The real value of digitalization
Today, supply chain leaders are repeatedly told that digitalization can benefit them tremendously. But, considering technologies are used for different tasks and in various ways across the globe, pinning down an exact projection of ROI can be rather difficult. However, perhaps companies will be more inclined to make the jump to digital when they realize just how much money it can save them.
In a new research report conducted by the Center for Global Enterprise and CREATe.org, it was revealed that organizations that digitalize their supply chains can save as much as 50 percent in costs, Supply Chain Digital reported.
According to the source, one of the biggest findings the study made was that enterprise supply chains have incredible value when digitalized, including:
- 20 percent decrease in procurement costs
- 50 percent decrease in supply chain costs
- 10 percent increase in revenue
It is worth noting that these statistics were found to be true for businesses in various industries, even those that aren't typically supply chain-focused, such as those in the financial sector.
Preparing for the future
As we previously discussed, successful supply chain digitalization requires managers to take a careful and strategic approach to the planning process. In addition, investments must be made in the right tools and technologies that offer the greatest value to the organization's specific needs. Once new systems and processes are implemented, supply chain leaders must ensure the digital technologies are protected and properly secured, monitored and maintained at all times.
Adopting a new management approach to may be necessary with the digital supply chain. But, considering the tremendous cost-savings opportunities it presents for organizations, it will certainly be worth the investment. The key is ensuring the planning, implementation and protection stages are adhered to with adamant attention to detail. It is important that, in their eagerness to gain a competitive advantage and modernize their operations, companies do not overlook critical steps in the digitalization process. Doing so will only result in unnecessary expenses and delays in production.