A digital supply chain is the most efficient way to create a tech-friendly and future-proof business. Supply chains ensure the management of business resources, labor, inventory, and money-handling processes so companies can free up time and money to pour right back into their businesses.
However, a startling 33% of business owners across the United State and Europe are unhappy with their company’s digital supply chain operations as a whole. Because of this, several business owners are looking toward the future, estimating that digital supply chain transformations within the next five years will be problem-solving and revolutionary.
To better understand what digital supply chain transformation will look like over the next five years, we’ve created an overview that will help your business prepare for the future.
Current State of Supply Chains
While several businesses are undergoing a transformation in how they handle supply chains, 48% admit they still use traditional methods of management such as phone, fax, email, and paper invoicing. These outdated methods slow down processes, prohibiting business growth.
This insight sheds some light on the quoted 33% approval rate in supply chain management currently. While some businesses have aspects of management are fully digitized and streamlined, other aspects of management within the same business have yet to catch up to today’s technology.
This inefficient combination of automated and manual processes can create a lot of internal confusion. While the automated aspect should start to generate some of the power and resources necessary to scale rapidly, the old-fashioned manual processes slow processes down. When these methods are used in combination, the entire supply chain collaboration process might be left feeling that it’s in limbo. Until all facets are a supply chain are fully digitized and managed in a similar fashion, this discomfort will continue.
Knowing something needs to be done to ensure supply chain business success in the future, some business owners are already undergoing significant transformations. Though many partners and businesses still rely on traditional means, 5% have undergone full transformations and are delighted with the results.
The most successful transformations included implementation of cloud storage technology, supply chain visibility tools, simulation tools, and dynamic data analytic tools. Now, more supply-chain reliant businesses are making the push to utilize these technologies that can completely transform their digital supply chains and ensure tech-ready future success.
The Estimated Future
Many business owners believe that while dynamic means of transformation are already available today, their respective industries won’t be fully ready until five years from now. Why? Because many supply chain partners still prefer traditional methods, and businesses are striving to compromise for these partners.
When supply-chain partners also adapt to a completely digitized workflow, digital supply chain solutions will be easier than ever and more convenient at every step, from businesses to suppliers and partners.
In the next five years, digital solutions will hold the key to complete transformation.
Major decisions regarding supply chain collaboration will be influenced by digital solution data, accessibility will be significantly enhanced, and supplier correspondence and management will become even more, if not wholly, automated.