The Case For Digital Transformation in the Supply Chain

Digital Transformation is quickly becoming one of the buzz words of corporate America as well as in global business. It's a hot topic because there are industries who are more digitally inclined than others. While it is more natural to certain industries, slowly but surely all businesses will move towards digital transformation because at the heart of it the changes are in place to help organization's relationship with the customers.

Supply chain tends to be one of the industries that is a bit slower to transform but full digitalization is doable. The value proposition for fully supply chains is that it increases efficiency.

Research from Capgemini shows that in the supply chain sector, technologies such as RFID, GPS, and sensors enable organizations to transform their existing hybrid supply chain structures into more agile and collaborative digital models.

Unlike hybrid supply chain models, digital supply chains enable business process automation, organizational flexibility, and digital management of corporate assets. In order to reap maximum benefits from digital supply chain models, it is important that companies internalize it as an integral part of the overall business model and organizational structure. Localized disconnected initiatives, and silo based operations pose a serious threat to competitiveness in an increasingly digital world.

Supply chain leaders must take advantage of the opportunities that come with digital transformation in order to stay competitive in today's global market. Digitization does not mean applying the latest technologies, it means aligning digital initiatives with supply chain goals and adopting a Digital Operating Model to find the untapped potential of existing resources and capabilities, thus resulting in a higher level of performance.

Michael Gravier is an Associate Professor of Marketing and Global Supply Chain Management at Bryant University with a focus on logistics, supply chain management and strategy and international trade. Follow him on Twitter at @Michael_Gravier. Follow Bryant University on Facebook and Twitter.

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