Automation, artificial intelligence, IoT. New technologies are increasingly present in the supply chain. Far from being just a fad, this digital transformation of the supply chain is disrupting companies’ logistics processes.
Why digitise the supply chain?
According to PwC, 87% of supply chain managers are convinced that new technologies will have a major impact on their business in the coming years. And rightly so, digitalisation is profoundly transforming many aspects of the supply chain.
Lower supply chain costs
Digital transformation allows some of the supply chain processes to be automated, resulting in reduced transport costs. From creating invoices to completing delivery notes, many time-consuming tasks can be done instantly, which is less time-consuming. This also reduces the risk of human error, which is a major source of costs.
Increased productivity
In addition to reducing costs, task automation has a positive impact on employee productivity. Tedious tasks such as data entry or searching for scattered information are a thing of the past: they can now focus on tasks with high added value. In addition, the digitisation of the supply chain improves internal communication, especially thanks to collaborative working tools.
Better stock management
Inventory management plays a key role in the supply chain. The company must be able to check its stock levels at any time and ensure that it has sufficient goods to meet demand. With a digital supply chain, it is possible to monitor stocks in real time, with automatic alerts in case of impending shortages. Some systems even allow automatic ordering when the quantity on hand falls below a certain threshold.
More accurate traceability
Digital transformation makes it possible to follow goods from one end of the supply chain to the other, for optimal traceability. The company knows the exact location of each product, the status of deliveries and the space available in the warehouses.
Better control of information
The digitisation of the supply chain also means that information can be monitored at any time from any device: computer, smartphone, touchpad, etc. It is also possible to set up real-time notifications, for example in case of delivery delays.
Improving corporate image
To remain competitive with the competition, it is essential to go digital: the company’s image is at stake. Indeed, customers particularly appreciate being able to follow their deliveries in real time, with exemplary traceability. Digital transformation is also reassuring for partners, such as carriers, who can communicate with the company thanks to online communication tools.
The 3 main levers of the digital transformation of the supply chain
Internet of Things (IoT)
The IoT (short for “Internet of Things”) refers to a network that connects smart objects: sensors, smartphones, detectors, GPS, etc. Devices that have in common their ability to return information.
In the context of the supply chain, IoT is a very useful technology for collecting and analysing data. In particular, it can anticipate the availability of human and material resources, maintenance needs and the supply of raw materials.
Incidents such as breakdowns or stock-outs can now be predicted thanks to the Internet of Things, which greatly simplifies supply chain management.
Artificial intelligence
Artificial intelligence is also a pillar of the digital supply chain, as it can predict future activities from existing data, thus improving decision-making.
It is also essential for the implementation of predictive maintenance, which allows defective products to be instantly identified by sensors and discarded. The result is a significant increase in productivity, but also the highest quality of products delivered to customers.
Predictive analytics
Predictive analytics combines analytics and statistics to study historical and current data to predict the future. This allows the company to anticipate risks, identify future trends and implement measures to adapt to these predictions.
In the context of the supply chain, predictive analytics can be used to optimise inventory management and transport networks, but also to improve customer service. It also contributes to predictive maintenance, along with IoT and AI.
Business Intelligence: an essential tool for the digitisation of the supply chain
The benefits of Business Intelligence for the supply chain are well known. But BI is also a real asset to support the digital transformation of the supply chain.
Firstly, it enables the collection and processing of large volumes of data, whether related to transport, purchasing, stock or maintenance. In this way, the company can exploit the full potential of the Internet of Things and artificial intelligence to optimise it’s end-to-end supply chain.
With a BI solution for the supply chain, all this valuable data is centralised in a common data warehouse. Their analysis makes it possible to anticipate stock shortages, reduce costs, optimise purchases from suppliers, but also to modify production orders according to available material and human resources.
The digital transformation of the supply chain can bring many benefits to your business, whether in terms of cost, traceability, or productivity. However, this transition must be supported by the right tools, starting with a business intelligence solution, which allows you to exploit the full potential of data in the supply chain.
