Because existing industrial markets have globalized and breached international borders, today’s corporate world has produced tighter market rivalry. Simultaneously, in order to survive and retain a sustainable competitive edge in this global market, groups to find new digital technology that may be used to start a new business model. The way industrial activities are carried out in today’s competitive environment has compelled 3D printing, fast prototyping, and other new manufacturing technologies should be used by enterprises. Make use of the internet of things to gather and analyze data. In today’s competitive and unstable environment, Every business’s goal is to please the consumer with accurate product quality and quantity and at the best possible price. Digitize and ace your career with Digital Supply Chain Management Certification.
The current state of supply chain management technology in India
Businesses must embrace current technology to boost their efficiency and simplify their supply chains in today’s competitive climate. Some of the technologies currently used in India’s supply chain management include electronic data interchange (EDI), enterprise resource planning systems (ERP), barcoding and scanning, radiofrequency and identification (RFID), computerized shipping and tracking, and social media and electronic commerce. However, these technologies are saturated and unable to gain a competitive edge in today’s global market, due to the widespread use of the internet, which has altered consumer purchasing behavior and demand patterns, putting enormous pressure on supply chain management. As a result, in order to remain competitive in this global market, a change to digital technology is required.
Supply chain management in the Digital Era
Emerging digital technologies are new technologies that are being created now or will be developed in the next years and will have a significant impact on the economic and social environment. Digital supply networks offer the ability to analyze large amounts of data and allow supply chain participants to interact and communicate across several 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 analysis) are used to change how a company generates value in its products, interacts with suppliers, partners, and customers, and competes in the global market. As a result, digital supply chain management can be defined as a powerful innovative technology capable of changing the traditional way of doing various supply chain processes such as supply chain planning, task execution, interacting with all supply chain participants, achieving supply chain integration, and enabling new business models. Because digital transformation is a change, every organizational change endeavor should be handled with caution. Digital transformation is not the result of a single person’s effort; 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 get raw materials, transform them into final goods, store them as completed product inventories, and finally distribute them to the ultimate clients. 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 wish to digitalize their present supply chain techniques must first determine the possibilities and obstacles that their current operations face. They must also address the digital transformation of the entire firm, including its employees,
products and services, as well as interactions with partners, suppliers, and consumers.
It’s necessary to define SCM’s digital transformation agenda, but it’s also critical to consider how SCM can contribute to the digitization of the business model. The degree to which the SCM must alter itself will also be determined by whether the firm joined the market with a digital business model from the start as a digital native or later as a digital migrant.
- Integration of regional supply chains into a global supply chain is referred to as supply chain integration.
- The supply network helps to increase sales and supply chain visibility, allowing for more flexible reaction management.
- Digital demand planning includes collaborative demand planning with consumers, and companies have already begun investing in re-designing demand planning processes using solutions and technology such as demand sensing.
- Maintaining competitive advantages requires collaboration.
- All sectors are interested in analyzing selling trends and buying behavior since it gives for a better knowledge of clients’ needs through demand sensing and current sales data.
- Building a business network and having a shared vision to connect their essential business partners on a platform with the goal of creating an easy interaction point is suggested by the digital business model.
- Maintaining a competitive edge requires effectively managing the supply chain and quickly adjusting to new market requirements.
Digital Supply Chain Management Benefits
The following are some of the advantages of digital supply chain management:
- Better decision-making as a result of increased openness.
- Inventory levels will be reduced when more just-in-time procurement is employed.
- Inventory levels are clearly visible thanks to a fully integrated system that spans the whole value chain.
- Increased decentralized storage to shorten delivery times.
- Shorten delivery timeframes by reducing the number of stages in the selling process.
- Through demand sensing and up-to-date sales information, a better knowledge of the customer’s requirements is gained.
- Increased revenue, improved company margins, and strong customer relationships.
- Increased supply network flexibility while lowering supply chain risks and expenses.
- In the decision-making process, a greater number of options will be offered, resulting in improved supply chain management decisions.
- Maintaining a competitive advantage.
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 may 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 be improved thanks to digitalization. Modularization, simplicity, and standardization of products and processes will be possible thanks to the use of cutting-edge digital technology. Companies must recognize the benefits of innovative business models that add value to their product portfolios and create new demand channels for more digital clients.
As a result, supply chain executives must find solutions to the question of how to employ digital technologies to get benefits from them and how these technologies may be integrated into their present supply chain operations. Various benefits and limitations of using developing technology to supply chain management have been discussed throughout this study. Investing in and deploying new technologies will provide businesses with a long-term competitive edge by boosting access to information, lowering costs, improving product quality, and increasing responsiveness and collaboration capabilities.