As existing industrial markets have gone global and crossed international borders, today’s corporate world has produced closer market rivalry. Simultaneously, in order to survive and maintain a sustainable competitive advantage in this global market, groups are looking for new digital technologies that can be used to initiate a new business model. The way industrial activities are carried out in today’s competitive environment has forced companies to use 3D printing, rapid prototyping and other new manufacturing technologies. Use the Internet of Things to collect and analyze data. In today’s competitive and unstable environment, the goal of every business is to please the consumer with the precise quality and quantity of the product and at the best possible price. Go digital and master your career with Digital Supply Chain Management Certification.
The current state of supply chain management technology in India
Businesses must embrace today’s technology to increase their efficiency and simplify their supply chains in today’s competitive climate. Some of the technologies currently being used in supply chain management in India include Electronic Data Interchange (EDI), Enterprise Resource Planning (ERP) systems, barcodes and scanning, radio frequency and identification (RFID), computerized shipping and tracking, and social networking and e-commerce. However, these technologies are saturated and unable to gain a competitive advantage in today’s global marketplace, due to the widespread use of the Internet, which has altered consumer buying behavior and demand patterns, putting enormous pressure on management. of the supply chain. As a result, to remain competitive in this global marketplace, a shift to digital technology is required.
Supply chain management in the digital age
Emerging digital technologies are new technologies that are being created now or will be developed in the coming years and will have a significant impact on the economic and social environment. Digital supply networks offer the ability to analyze vast amounts of data and allow supply chain participants to interact and communicate across various digital platforms.
Digital transformation is a process of organizational change in which digital technologies (such as cloud computing, 3D printing, the Internet of Things, and big data analytics) are used to change the way a company generates value in its products, interacts with suppliers, partners, and customers, and competes in the global marketplace. As a result, digital supply chain management can be defined as a powerful innovative technology capable of changing the traditional way of performing various supply chain processes such as supply chain planning, task execution, interaction with all supply chain participants, achieving supply chain integration and enabling new business models. Because digital transformation is change, every organizational change effort must be handled with caution. Digital transformation is not the result of the effort of a single person; rather, it is the result of a collection of activities that work together to bring about change.
According to Farhani, Meier and Wilke, every supply chain consists of a series of operations that are carried out to obtain raw materials, transform them into final goods, store them as inventories of finished products and finally distribute them to final customers. Suppliers, production, inventory, logistics, customers, information technology, human resources, and performance measurement are the seven dimensions of SCM.
The digital supply chain framework
Supply chain managers who want to digitize their current supply chain techniques must first determine the possibilities and obstacles facing their current operations. They must also address the digital transformation of the entire company, including its employees,
products and services, as well as interactions with partners, suppliers and consumers.
It is necessary to define the SCM digital transformation agenda, but it is also essential to consider how SCM can contribute to the digitalization of the business model. The degree to which the SCM needs to be modified will also be determined by whether the company entered the market with a digital business model early on as a digital native or later as a digital migrant.
- The integration of regional supply chains into a global supply chain is known as supply chain integration.
- The supply network helps increase sales and supply chain visibility, allowing for more flexible response management.
- Digital demand planning includes demand planning in collaboration with consumers, and companies have already begun to invest in redesigning demand planning processes using solutions and technology such as demand sensing.
- Maintaining competitive advantages requires collaboration.
- All sectors are interested in analyzing sales trends and purchasing behavior, as it allows a better understanding of customer needs through demand detection and current sales data.
- The digital business model suggests building a business network and having a shared vision to connect your essential business partners on one platform to create an easy point of interaction.
- Maintaining a competitive advantage requires effective supply chain management and adapting quickly to new market requirements.
Benefits of digital supply chain management
The following are some of the advantages of digital supply chain management:
- Better decision making as a result of greater openness.
- Inventory levels will be reduced as more just-in-time acquisitions are used.
- Inventory levels are clearly visible thanks to a fully integrated system that spans the entire value chain.
- Increased decentralized storage to shorten delivery times.
- Shorten lead times by reducing the number of stages in the sales process.
- Through demand detection and updated sales information, a better understanding of customer requirements is obtained.
- Higher revenue, better company margins, and strong customer relationships.
- Increased supply network flexibility while reducing supply chain risks and expenses.
- More options will be offered in the decision-making process, resulting in better supply chain management decisions.
- Maintaining a competitive advantage.
Final thoughts:
The digitization of supply chain management will bring about revolutionary transformations. This study aimed to illustrate some of the difficulties that emphasize the relevance of digital supply chain management, as well as the obstacles it faces and how these challenges can be turned into competitive advantages.
New technologies like big data, cloud computing, and the Internet of Things can help solve these problems. The visibility of the supply chain will improve thanks to digitization. The modularization, simplicity and standardization of products and processes will be possible thanks to the use of state-of-the-art digital technology. Companies need to recognize the benefits of innovative business models that add value to their product portfolios and create new demand channels for more digital customers.
As a result, supply chain executives must find solutions to the question of how to use digital technologies to benefit from them and how these technologies can be integrated into their current supply chain operations. Various benefits and limitations of using developing technology for supply chain management have been discussed throughout this study. Investing in and implementing new technologies will provide companies with a long-term competitive advantage by increasing access to information, reducing costs, improving product quality, and increasing collaboration capabilities and responsiveness.
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Categories: Technology
Source: vtt.edu.vn