The rapid growth of technology has radically altered the traditional supply chain management landscape. The incorporation of advanced technologies like artificial intelligence, automation, and the Internet of Things (IoT) in the supply chain has made the process more efficient, streamlined, and cost-efficient. However, there is still a long way to go as only about 43% of supply chain processes are digitized.
Businesses can fill these gaps with advanced technological innovations and better managerial decisions.
Here are six ways in which digitization has changed the face of the global supply chain.
Better decision making with Big data analytics
Big data uses data and quantitative methods to improve decision-making in all supply chain segments, including transportation, sourcing, sales, and more. It collects data from more than just the ERPs and SCMs to provide better insights. As a result, it improves the decision-making processes in all front-line operations. With Big data, you can make decisions based on advanced statistical analysis rather than relying on guesswork and human experience.
You can run a demand-driven supply chain
With the onset of IoT, demand and supply processes have dramatically changed. Now you can predict upcoming sales demands in real-time with predictive data analysis.
For example, you can predict an increase in demand for umbrellas or sunscreens in a particular region by analyzing weather patterns. It helps manufacturers meet the needs of consumers and eliminates waste incurred by excessive supply.
Automation of inventory, stock keeping, and reporting procedures enables businesses to minimize frauds and other supply chain problems like shipping delays and miscommunication. It reduces errors at each stage of the production cycle, significantly enhancing the process’s overall efficiency.
Improved business value
Digitization helps minimize delays in services, improves customer support, provides personalized services, and reduces lead time. These factors combine to deliver high-quality products and services to the customers. It promotes brand loyalty and increases your business’ value among the customers.
Enhanced cash flow
Supply chain management depends on many external factors like weather changes, political environment, and regulatory requirements. And all these problems can potentially tie-up significant cash flow due to delays in the invoice payment cycle.
Online transactions speed up the invoice cycle and allow you to receive payments instantly by expediting the speed of services and deliveries. It offers greater liquidity and flexibility to your business.
Mobility is the new norm
Running a business is no longer restricted to cubicles and desktops. With proper technical knowledge, you can manage the company’s entire supply chain through laptops or tablets.
At Haulerhub, we help our clients increase their supply chain management efficiency by connecting them directly with shippers and haulers. We use innovative technology to enable an innovative digital interface between shippers and haulers. It allows you to receive better results faster and at a lower cost. Sign up today to ship or haul goods with ease. You can also call us at +1 347-349-0152 or drop an email at firstname.lastname@example.org to know more.