Supply chain digitalization is a journey, not a destination
Amy Shortman of Overhaul and Burt White of Slync.io on why so many vitally important digital transformation programs fail to get off the ground
Pre-pandemic, businesses already had a heightened interest in advanced analytics, so it was hardly a shock that COVID-19 should be the catalyst for widespread end-to-end digitalization of supply-chain processes.
According to a 2020 McKinsey report into how COVID has shaped supply chains, almost every company is either planning to invest in full-scale digitalization or already is, with construction the only sector not embracing digital transformation en masse.
Today’s ongoing digitalization programs mostly focus on visibility, as companies strive for a better picture of the real-time performance of their supply chains.
Here, we get the views of two logistics tech professionals on what digital transformation of the supply chain means for them.
"The biggest barrier to digitalization is sheer complexity. One of the hardest decisions is choosing where to start in order to be successful."
What are the biggest barriers to digitalization?
[AS] The most complex issue is standardization of processes across the globe. Global supply chains involve multiple stakeholders, and they often use different systems. Some still use paper-based documentation and tools such as Excel to manage complex tasks that it was never designed for.
Others who are further along the digital transformation journey can find themselves using disparate systems or solutions that are not a fit for their business goals.
We're finding that, at the moment within the industry, many companies focusing on their digital journey often don't know where to start or select the wrong vendors, and this leads to disillusionment.
[BW] In general, the biggest barrier to digitalization is sheer complexity. One of the hardest decisions is choosing where to start in order to be successful. Secondly, there’s not just one tool or system that can completely digitalize your operations. It usually involves layering on top of an existing system and working within existing processes.
[This article was originally posted by Supply Chain Digital. To continue reading, visit supplychaindigital.com.]
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