In today's fast-paced business world, digital transformation is rapidly changing the way organizations operate and manage their supply chains. Advancements in technology have enabled companies to streamline their supply chain operations, improve efficiency, and reduce costs.
Integrating digital tools, such as cloud computing, artificial intelligence and the Internet of Things (IoT), is transforming how businesses interact with their suppliers, customers, and partners. In this article, we will explore big data analytics solutions in supply chain management, with a focus on the benefits and challenges that organizations are facing, as well as some business examples.
According to a survey conducted by Accenture, 82% of supply chain executives believe that digital transformation is essential for their business to remain competitive. This is since digital technologies have enabled organizations to better manage their supply chain operations, including demand forecasting, inventory management, and order fulfilment.
For example, by using cloud-based systems, companies can access real-time data and insights into their supply chain operations, allowing them to make more informed decisions and improve their overall performance.
Digital Supply Chain
The best strategy for digitizing supply chains using supply chain analytics services combines redesigned procedures with the right cutting-edge technologies. The three steps of the fundamental transformation approach - creating a vision for the future of the supply chain, evaluating the supply chain's current condition, and creating a transformation road map - will be familiar to many managers.
This strategy has some novel aspects in a digital transformation. The proposed revisions will be a mix of no-regrets adjustments and longer-term, more speculative adjustments. If operations and technology are properly aligned, and if the company has an organizational structure and talent strategy that support innovation and ongoing development, such factors need to be considered in the assessment.
Tech Trends Shaping the Digital Supply Chain Management
High adoption of Artificial Intelligence and Machine Learning
Artificial intelligence (AI) and machine learning (ML) are rapidly becoming essential tools in the digital supply chain. AI and ML are being used to automate routine tasks, such as data analysis, forecasting, and inventory management, freeing up human resources to focus on more strategic initiatives.
In addition, AI and ML are helping organizations to make more informed decisions by providing real-time data and insights into supply chain operations.
According to a recent survey by Gartner, 60% of supply chain organizations plan to invest in AI in the next three years, while over 40% have already deployed AI-based solutions.
Significance of the Internet of Things (IoT)
The Internet of Things (IoT) is another key technology shaping the future of DSCM. IoT devices, such as sensors and RFID tags, can be placed throughout the supply chain to track and monitor the movement of goods in real time. This information is used to improve supply chain visibility, reduce the risk of stockouts, and optimize inventory levels.
According to a recent study by Forbes, the IoT market is expected to grow from $157 billion in 2020 to $458 billion by 2024, representing a compound annual growth rate of 23%.
Greater emphasis on sustainability and eco-friendliness
Consumers are becoming increasingly concerned about the environmental impact of the products they purchase, and many organizations are responding by making sustainability a key focus of their supply chain operations.
This includes implementing practices such as reducing waste, optimizing energy use, and improving the efficiency of transportation and logistics.
According to a survey by Accenture, 77% of consumers are willing to pay more for products and services from companies that have a positive social and environmental impact.
Emergence of new technologies, such as blockchain and 5G
Blockchain technology, which is often associated with cryptocurrencies such as Bitcoin, is starting to be used in the supply chain to improve transparency, reduce fraud, and increase efficiency. By creating an immutable ledger of transactions, blockchain provides a secure and auditable record of all activities in the supply chain, helping to improve trust and collaboration between different stakeholders.
5G, the fifth-generation wireless network, is also set to play a key role in the future of DSCM. With its faster speeds and lower latency, 5G will enable organizations to gather and process data from IoT devices in real-time, allowing for more accurate and timely decision-making.
Robotics & Automation
According to a report by the International Federation of Robotics, the global market for industrial robots will reach $16.2 billion by 2024. Robotics has revolutionized the way goods are manufactured and distributed. Robotics has been integrated into the supply chain data analytics to automate manual tasks and increase efficiency.
For example, robots are now used to pick and sort products in warehouses and distribution centers. This has reduced the need for manual labor and decreased the time it takes to process and ship orders.
Reliability on Advanced Analytics & Big Data
Advanced analytics plays a crucial role in SCM by providing real-time data insights to support decision-making. With advanced analytics, companies can optimize their supply chain operations and make informed decisions based on data-driven insights.
Big data allows companies to analyze large amounts of data in real-time and make data-driven decisions. For example, companies can use big data to track inventory levels and predict demand. This has led to an increase in the accuracy of demand forecasts and reduced the risk of stock shortages.
According to a report by MarketsandMarkets, the global big data market is expected to reach $102 billion by 2026.
Concluding Note
In conclusion, digital transformation is rapidly changing the way supply chain management is being performed, with the integration of digital tools and technologies delivering significant benefits to organizations.
From improving efficiency and reducing costs to enhancing visibility and reducing the risk of lost or damaged goods, digital transformation is shaping supply chain management in ways that were previously not possible.
Companies that embrace these new technologies and invest in their employees will be best placed to succeed in the digital era. By choosing Polestar Solutions as your digital transformation partner, you can capture full value in your supply chain management. Get in Touch with our experts to scale your supply chain performance.