Supply and logistics companies are facing increased competition and rapid digital transformation in the space. In order to survive, they must adapt quickly and efficiently. Logistics companies that don’t embrace new technologies are at risk of losing market share, not to mention profits. Digital Transformation is an opportunity that should be embraced. Companies that do embrace it will be leaders and not laggards.
In the remainder of this article, we will cover supply chain management benefits from digital transformation, challenges for supply and logistics companies, and what is supply chain digital transformation.
Supply and Logistics Company Challenges
Supply chain and logistics companies have many challenges to face. Amazon, e-commerce, just in time and overnight deliveries have changed the sector permanently. There is a push to automation and robotics in warehouses and depots. There is also increasing amounts of automation and digital transformation in back offices. Process improvement on a continuous basis is critical, however this is typically not a core competency for many of the companies in the space. Like other industries cost containment is key. Increasingly omnichannel customer support and keeping up with customer requirements are also creating pressure. Managing data and having a business intelligence plan also is challenging, as are supplier and partner relationship management, and staffing and labor shortages. Digital transformation in logistics can help with many of these issues.
What is Supply Chain Digital Transformation
Just like in other sectors digital transformation is comprised of deploying bots through the use of RPA. An RPA bot can read a screen, use business software, and perform tasks that are repetitive, and rules based just like a person would. Conversational AI enables customers to speak with software bots and either address questions right away or route callers, or persons in web chats, to human agents. When put in contact with a human agent that worker will now have more information about the call or chat and the customer will be further in the process of addressing the reason that they have contacted a company in the first place. Cognitive AI can be used to process massive quantities of invoices, bills of laden or other documents. AI and ML can be used to spot trends and identify issues before they become major headaches.
Supply Chain Management Benefits of Digital Transformation
There are many benefits and advantages to leveraging digital transformation in supply and logistics companies. Let’s examine three of the most important of them below.
Increased Efficiency and Decreasing Costs
Increased efficiency can be achieved in a variety of ways. In terms of productivity, supply & logistics companies can use digital transformation to increase the number of packages they handle. This means more products will be on shelves or in their customers warehouses, making customers happier and increasing sales. Increasing efficiency also means decreasing costs and improving the efficiency of office staff. By automating workers, they can do more in less time. Economic resources tied up to support back office functions can be shifted to the shop floor. .
Streamlined Supply Chain Processes
Digital transformation can help supply and logistics companies improve their processes by streamlining supply chain workflows. This means that companies will have reduced paperwork and manual processes, more efficient use of resources, improved visibility of inventory and supply chain, and improved collaboration with their partners and customers.
Improved Inventory Management
Inventory management is a key part of supply chain management. It allows companies to get the right products to the right place at the right time, which helps them reduce waste and avoid unnecessary costs. One of the biggest benefits of digital transformation in this regard is improved inventory management. By using digital tools, companies can better manage their inventory levels, enabling them to reduce overstock or out-of-date stock. This means that they don’t need as much warehouse space or as many workers handling physical inventory items as before, this saves money on storage costs and labor costs alike.
Supply Chain Digital Transformation Key Take Aways
Regarding supply chain management benefits from digital transformation, we would like to share two key take aways.
Digital Transformation is a Process
Digital transformation is a process, and it is a journey. It’s about how you manage and organize your business. It will help you meet and exceed business goals. However, it needs to be continually improved and optimized.
Digital Transformation Drives Efficiency and Productivity Gains
Efficiency and productivity are big time beneficiaries of digital transformation. Digital transformation can help logistics companies cut costs by streamlining processes and automating manual tasks. RPA and Conversational AI can improve inventory management, scheduling, invoicing, reporting, as well as customer service in real time or near-real time rather than waiting until the end of the day to compile data into reports or emails.
Supply Chain Digital Transformation Conclusion
The benefits of digital transformation for supply and logistics companies are clear. The use of digital tools can make it easier to meet the goals of their business and improve collaboration between suppliers and customers plus streamline operations and processes. Digital transformation tools help companies better manage their inventory, which in turn helps them reduce costs associated with physical storage or transport fees. By working with companies like Valenta to learn more about how digital transformation tools works within a supply chain ecosystem, logistics companies can find the right solutions and services for their needs.
Transport, Supply Chain and Logistics businesses can benefit from Valenta services in the area of digital transformation. We offer flexible managed services in this area that run month to month. We have local and regional Managing Partners who know this space and have experience with Transport, Supply Chain and Logistic Our Managing Partners are located in cities across the US, Canada, the UK, the EU, and Australia. They work with other onshore consultants, plus offshore consultants, developers, and managers of outsourced staff to deliver the best services to our clients. If you would like to speak in greater detail, please reach out to locate a Managing Partner in your area.