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.
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