Supply chains have become increasingly digitilised in recent years. More and more companies are seeing the vast benefits of embracing digital technologies to improve their flexibility, efficiency and agility. Whether it be the ability to gain new insights with Artificial Intelligence (AI) and Machine Learning (ML), or the use of big data to improve decision-making across the wider supply chain, there are a plethora of ways that various digital technologies can be utilised by corporations today.
In this post, OCI takes a closer look at how digital technologies are being implemented into supply chains and the challenges that can arise from this implementation. Read below to learn more about the growing digitalisation of global supply chains. If you’d like to find out about how OCI optimises the performance of large corporations with tailored commercial management solutions, then please visit the OCI website today or contact us directly on +44 (0) 20 3137 7326.
What is Supply Chain Digitalisation?
With the emergence of new digital technologies – such as the Internet of Things (IoT), Blockchain and Machine Learning – supply chains are now significantly more interconnected and digitalised. Incorporating these technologies into supply chains enables companies to optimise their planning, sourcing and procurement processes. Digitalisation increases business efficiency and drives growth, which is especially important in the post-COVID economy.
Supply chain digitalisation can look like many different things for many different companies. Some firms might choose to invest heavily and undergo a full-scale digital transformation. Whereas, others might opt to make a smaller investment, focusing on one or two specific digital areas.
For instance, a company might combine data with a certain level of automation and smarter analytics; this degree of automation doesn’t require a substantial financial investment. And, it can provide companies with numerous gains such as lower costs, improved customer experience and enhanced retention.
Advantages of Implementing Technologies into Supply Chains
Implementing technologies into digital supply chains can be highly advantageous for corporations of all sizes and scales. At its most fundamental level, digitalisation can help streamline a business’ processes and transform its supply chain into a more forward-looking one.
Ultimately, supply chain digitalisation will enable a business to optimise its internal procedures and make use of unused potential in the supply chain. Successful digital integration will increase efficiency and decrease costs, automating inventory, ordering and scheduling tasks. In the long-term, it will greatly improve the true performance of a business’s supply chain, delivering increased profitability and growth.
Challenges Faced During Implementation
It’s also important to consider the various challenges that are experienced during the integration of digital technologies into supply chains. Implementing digital technologies can have a major impact on a company’s costs, investments, resources and overall operations.
Digitalisation can be particularly challenging for companies that still utilise legacy and analogue systems within their operations. Employees and suppliers may be unwilling to change and adopt digital technologies, and there can be huge knowledge gaps that prevent technologies being used to their maximum potential.
In conclusion, a significant proportion of the disparity between the potential actual gains from supply chain digitalisation can be explained by technology gaps and management choices. It’s imperative that management are aware of the potential challenges that can occur from digitalisation, and implement strategies to mitigate these obstacles.
Welcome to OCI
At OCI, we specialise in redesigning supply chains for organisations, with the objective of driving and encouraging growth. Our team will help propel your business growth with personalised commercial management solutions. We can utilise our vast global network and years of expertise to optimise the overall performance of your supply chain. No matter whether you are a large corporate or government, our team can assist you with a first-class commercial process outsourcing solution.
If you would like to get in touch with OCI about our trade and supply chain finance and learn how we can support your business as it transitions to supply chain digitisation, then please contact us today. You can reach us by email at hello@oci-group.co.uk or call us on +44 (0) 20 3137 7326. Our team is here to answer your questions, provide you with more details about our trade and supply chain finance, and help you obtain the best possible solution for your business. As we are an industry and product-agnostic company, we can support a diverse range of businesses across multiple industries – from technology and media to pharmaceuticals and consumables.