Digi­ti­sa­tion of sup­ply chains

SANJEEV KU­MAR, EX­EC­U­TIVE VICE PRES­I­DENT, Global Sup­ply Chain Group, shares in­sights on digi­ti­sa­tion for sup­ply chain that makes its cus­tomer fo­cused, ag­ile and ef­fi­cient.

Cargo Talk - - Guest Column - Sanjeev Ku­mar Ex­ec­u­tive Vice Pres­i­dent Global Sup­ply Chain Group

Digi­ti­sa­tion of sup­ply chains is in full swing and it is go­ing to bring enor­mous ben­e­fits (and some risks) to all sup­ply chain par­tic­i­pants. Mov­ing be­yond the first gen­er­a­tion ERP sys­tems and sup­ply chain plan­ning tools, to­day we have de­vised pro­pri­etary ad­vanced sup­ply chain plan­ning and sched­ul­ing tools that match sup­ply and de­mand in real time – cut­ting out enor­mous wastage of time and re­sources.

Even in the most die-hard back­ward parts of the sup­ply chain – ship­ping and freight for­ward­ing – pa­per is be­ing grad­u­ally re­placed with dig­its in cy­berspace. On the other side of the spec­trum, col­lab­o­ra­tive parts of the sup­ply chains are al­ready pa­per­less in most places. Ben­e­fits in­clude -in­stant avail­abil­ity of in­for­ma­tion, abil­ity to plan in real time, abil­ity to see the true pic­ture by all par­tic­i­pants of the sup­ply chain.Let us make that real by giv­ing an ex­am­ple that every­one can re­late to. Think of how you used to take a taxi be­fore Uber came along. It was a night­mare to find a taxi driver who would hon­estly agree to take you to your des­ti­na­tion at a rea­son­able price. Uber not only made life eas­ier for the rid­ing pas­sen­gers, and the drivers, but also proved to be more prof­itable for both. It has also used digi­ti­sa­tion to ef­fec­tively in­tro­duce surge pric­ing at the time of peak traf­fic. As a re­sult, it shapes de­mand and brings ex­tra sup­ply on­line si­mul­ta­ne­ously.

The ex­am­ple of Uber above shows how digi­ti­sa­tion of taxi sup­ply chain has sud­denly made the mar­ket cus­tomer cen­tric, yet prof­itable and ef­fi­cient for the taxi drivers. But this is not an iso­lated in­stance of digi­ti­sa­tion lead­ing to ef­fi­ciency, agility and cus­tomer cen­tric­ity. In fact at the heart of the digi­ti­sa­tion drive is an ef­fort to make the life bet­ter for both – the cus­tomers and the seller.

(The views ex­pressed are solely of the au­thor. The pub­li­ca­tion may or may not sub­scribe to the same.)

Mov­ing be­yond the first gen­er­a­tion ERP sys­tems and sup­ply chain plan­ning tools, to­day we have de­vised pro­pri­etary ad­vanced sup­ply chain plan­ning and sched­ul­ing tools that match sup­ply and de­mand in real time

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