Digital Transformation To Boost Supply Chain Efficiency

Digital Transformation To Boost Supply Chain Efficiency

Businesses are always searching for innovative methods to improve the efficiency of their supply chains due to the constantly changing technological landscape. In addition, companies are upgrading their supply chains in order to remain competitive due to constantly evolving market conditions, worldwide supply bases, and ever-expanding client expectations. In order to thrive in the current business environment, an agile and well-managed supply chain is essential for any manufacturing or eCommerce enterprise.

As an ERP development company, we help businesses improve supply chain visibility by offering supply chain software development services. Businesses may increase their delivery capacity and automate procurement management with our tailored supply chain solutions.

We’ll look at the main indicators that a supply chain transformation is necessary in this blog post.

Also, Read Supply Chain 4.0: Revolutionizing The Future of Logistics

The Key Indicators for a Supply Chain Transformation

The main signs listed below suggest that the supply chain is becoming more and more in need of digital transformation.

Misalignment Between The Key Functions

One of the main signs that it’s time to digitally convert your supply chain procedures is the breakdown in communication between the customers and internal managers involved in the processes.

Increasing Complexity In Sales and Operations Planning

When a market expands or a law is modified, sales and operations planning become more complex. Planning for operations and sales could slack off as the company expands. If the planners are not able to shorten the cycle time even after updating the current processes, it’s time to restructure supply chain procedures.

Onboarding New Planners Is Complex

A supply chain transformation is necessary when operations become so complex that hiring outside help is unpopular with the company. Recruiters feel that in these kinds of scenarios, it is preferable to use an existing employee to become familiar with the nuances of the supply chain planning system rather than bringing on more staff.

Increasing Customer Dissatisfaction

Growing consumer unhappiness is a blatant sign that a supply chain overhaul is necessary. Real-time insight across the supply chain is crucial for enhancing customer loyalty and retention. Business managers will be able to see any disturbances like delayed deliveries throughout the supply chain thanks to real-time insight, which will boost customer satisfaction.

Also, Read Supply Chain Software Development For The F&B Industry

Technology Trends Accelerating Supply Chain Processes

We highlight the major technological developments that speed up supply chain operations in a given sector or business in the section that follows.

Digital Twins

Supply chain managers can generate a mirror image of their internal and external processes with the help of digital twin technologies. Digital twins are useful for several tasks, including forecasting, testing, and inventory optimisation.

Digital twins have several applications in supply chain and logistics. Digital twins, for example, can be used to gather product and packaging data in the shipping industry. Further analysis of the data may be utilised to spot possible supply chain interruptions.

Moreover, warehouses can employ digital twin technology to build precise 3D models of their facilities and test new technologies or layout changes to see their effects. Businesses may also utilise this technology to give real-time information to drivers, which will speed up deliveries and help autonomous vehicles find their way.

Smart Inventory and Forecasting

Most supply chain activities can undergo a significant shift with the use of artificial intelligence (AI) technologies. Store managers can anticipate which products are the most economical to stock in a warehouse based on proximity by utilising AI technology.

Businesses can effectively forecast demand spikes and modify product flow routes in response with the help of AI-enabled supply chains. Businesses can utilise AI, for example, to collect extensive data (weather patterns and reroutes) that could impact delivery delays. Store managers will be informed of real-time inventory modifications based on these facts.

Businesses employ Frepple and Helical frameworks for efficient inventory planning and precise demand forecasts.

Advanced planning capabilities are facilitated by the open-source application framework called Frepple. Frepple is used by Oodles for demand forecasting and inventory planning. Let’s go over everything in detail:

Inventory Planning: To determine safety stocks and reorder amounts for intermediate goods, raw materials, and finished goods, we utilise Frepple.

Demand Forecasting: The foundation of all planning procedures is an accurate sales prediction. Business planners and sales teams can collaborate to create a future sales estimate by using demand forecasting. Frepple collects demand histories using sophisticated time series techniques. Businesses are able to analyse and modify the sales forecast thanks to the comprehensive information.

Also, Read The Importance of Data Analytics In Supply Chain Management

Multi-party Networks

The most recent development in supply chain transformation is the shift towards a multi-enterprise or network-based solution. Processes like procure-to-pay and order-to-cash will make it more noticeable. Collaborative planning and execution among several supply chain layers are made easier by multi-party networks. As these networks increase awareness and foster collaboration beyond the corporate “cubicle,” they will become increasingly important.

The supply chain is changing from having a functional orientation to a worldwide network of processes due to the rise in customer demand. Digital twins, AI, ML, and IoT are examples of next-generation technologies that are accelerating supply chain transformation to previously unheard-of levels.

We at Oodles offer supply chain software development services that help companies effectively manage their supply chain networks. To automate the logistics process and enhance supply chain operations, our engineers create comprehensive and adaptable supply chain software solutions. Send us an email at erp@oodles.io for additional information.