Introduction

In today's world, almost every Supply Chain is Digital. So why do we still talk about the Digital Supply Chain? And where should companies start? This article provides a practical overview of the Digital Supply Chain and how it can enhance customer satisfaction, reduce costs, increase flexibility, and promote environmental sustainability.

Goals of the Digital Supply Chain

The primary objective of the Digital Supply Chain is to serve customers faster, better, more cost-effectively, more flexibly, with quality guarantees, and in a more customer-friendly manner. Additionally, environmental considerations can drive the need to gather more information from the Supply Chain. This requires companies to adapt their processes to meet customer demands optimally.

Expanded Role of the Supply Chain Manager

The role of the Supply Chain Manager has expanded significantly. They must ensure that all activities are Business-driven, and that market demand is translated into internal processes.

Managing the Digital Supply Chain

The team responsible for managing the Digital Supply Chain is the same team responsible for all Supply Chain functions, such as sales, production, logistics, and more. Their task is to find new ways to achieve their traditional goals: improving efficiency and increasing margins. Essentially, "Digital Supply Chain Management" is just Supply Chain Management with an added layer of digital technologies.

Advanced Digital Technologies

Advanced digital technologies like IoT, Blockchain, machine learning, artificial intelligence, and predictive analytics are crucial for integrating and improving Supply Chains. These technologies assist with:

• Predictive analytics: Optimizing inventory allocation and forecasting demand. Data-driven: Knowing what is happening now instead of yesterday. For example, frequent updates from suppliers on estimated quantities and expected quality.
• Automated replenishment solutions: Automating inventory management.
• Robotics: Speeding up assembly or picking processes.
• IoT sensors: Collecting real-time feedback from production equipment and vehicles, such as onboard computers in trucks and shop floor equipment. Examples include:
  • Enhancing transport efficiency.
  • Tracking products in the warehouse and/or store (RFID and GPS).
  • Data from a temperature sensor in a container transporting fruit.

External Chain Collaboration

External Chain collaboration thrives when companies, in addition to internal prerequisites, have a clear common goal beyond just financial objectives. Examples of such goals include:

• Quality: For example, implementing a Digital Product Passport (DPP).
• Circular objectives: For example, reducing plastic use and reusing residual waste.
• Emission reduction: For example, lowering CO2-emissions.

Vision and Leadership

Collaboration among Supply Chain Executives is crucial. When there is a clear goal and people understand the purpose, companies are more likely to collaborate effectively. This requires vision and leadership, both within the company and across the supply chain. This is why Supply Chain Management is so vital.

Conclusion

The Digital Supply Chain offers numerous opportunities to enhance the efficiency, flexibility, and sustainability of Supply Chains. By leveraging advanced technologies and collaborating with partners, companies can better serve their customers, optimize their processes, and contribute to a better world. Proactive engagement is a significant advantage of the Digital Supply Chain.

Interested in optimizing and digitizing your Supply Chain? Contact Harbe, the Expertise Center for Chain Integration, today. Visit www.harbe.nl or call +31 6 41 903 391.

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