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The Current and Future State of Digital Supply Chain Transformation

Posted by [email protected] on Aug. 28, 2020  /  Subscribe 0

As the coronavirus pandemic continues to transform the supply chain industry, there is still much to learn about what is possible and how one can adapt to changing times. Some companies may find themselves having to change their current business models or re-examine the quality of their products and services. When it comes to manufacturing and retail especially, there is a need for a deeper understanding of the current and future state of digital supply chain transformation. With so much opportunity to adapt and overcome industry changes, supply chain managers and those in related careers owe it to themselves to learn and adapt for continued success.

Defining Digital Supply Chain Transformation

According to Forbes, the term “digital supply chain transformation”’ can mean different things to different companies: “For some companies, it means replacing manual, paper and pencil processes with digital data and process support.” However, for others, it can mean “applying machine learning and artificial intelligence (AI) to supply chain Big Data.” The former process is considered outdated, as the replacement of manual processes is not a new concept for most of the supply chain industry. Artificial intelligence solutions are, however, still considered an emerging technology. It’s important for companies to stay ahead of the curve.

This leaves the question of how and when the implementation of digital solutions should take place. According to ASCM.org, there are two main solutions that the supply chain industry can embrace in the ever-changing digital age, an “incremental change” or a “radical solution for a radical change”. However, with how fast new technologies are being created, transformation efforts need to take place within the next few years, and rapidly. The answer lies in the capabilities of digital technologies.

In recent times, digital initiatives have begun to take place in supply chains globally, and the results are promising. Data analytics applications are just one example of the types of tools being created in the digital age to improve the way supply chains function. With tools like this, managers can access supply chain performance data and improve sales and operations planning. Continual improvement is necessary to adapt to rapid changes within the supply chain industry. New applications and technology allow supply chain leaders to operate on a global manufacturing scale while still maintaining the goal to continuously improve customer experiences. Continual improvement is the only way to stay ahead of the game and to keep up with lead times. This type of improvement and forward-thinking is geared toward optimizing supply chain performance.

Machine Learning and Artificial Intelligence

The Oxford Dictionary defines the Internet of Things as ‘the interconnection via the internet of computing devices embedded in everyday objects, enabling them to send and receive data.” New business models can be formed from predictive maintenance services thanks to the Internet of Things (IoT) concept. It can be said that “machine learning-based algorithms are the foundation of the next generation of technologies”, according to one Forbes article that explores the ways in which machine learning technologies can vastly improve supply chain processes. The value this technology adds to the supply chain world is insurmountable; from cutting time and costs to improving performance in multiple areas of a supply chain business.

The Road Map to a Career in Supply Chain Management

Supply chain technology is advancing every day, opening up more career opportunities than ever before. Are you ready? Get started by receiving your APICS certification that will show employers what you’re capable of. Showcase your knowledge of supply chain management and supplement your resume with the knowledge of the current and future state of digital supply chain transformation that you will take with you through the rest of your career!

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