Tech Train study
Mazars publishes Tech Train study revealing global technological familiarity, investment and implementation levels
Time to digitally transform the supply chain
The supply chain is a vital component of any business – the lifeline that ensures products can make it to the market and the company is ready for its next opportunity.
However, in recent months, we have seen businesses risk commercial failure because they are running on outdated supply chains that leave them vulnerable to fluctuating demand. The key to protecting a business – in current times but also in more stable periods – is to integrate digital accelerators into the supply chain, which can improve internal processes, optimise turnaround times and shape better customer and employee experiences.
Practically speaking, supply chain transformation includes a combination of functional and process re-engineering and technological implementations, which address different areas, for example demand and supply planning, and recalibrating suppliers, logistics and inventory.
Five typical examples of digital interventions are:
Overall benefits of supply chain digital transformation include cost optimisation, increased efficiency of key processes (planning, order management, delivery and logistics, manufacturing, procurement and payment) and deeper insights into how the business works and any necessary corrective actions to take.
Productivity, deadlines and profit – digital transformation can deliver it. As we enter the ‘new normal’, investments around automation and digitalisation initiatives will likely remain top of the agenda for CXOs seeking achieve the above benefits.
The last decade has seen businesses gradually integrate technology into their supply chains; and in recent months, the impact of Covid has widened the net of sectors prioritising digital intervention.
Take education for example: because of lockdown measures, students have not been able to attend school regularly in many parts of the world. Digital platforms are the only way to fill the gap. Those organisations that have digital at their heart will be the ones that can offer collaboration tools and keep education going.
Healthcare is another sector massively affected by the virus. In India we have seen robots deployed to scan patient X-rays and use artificial intelligence to make a diagnosis. Such innovation reduces stress on the system and can bring turnaround times down four fold.
While the immediate effects of Covid may be lessening, its consequences will stay with us. In response, businesses need to ensure that remote working and digital interventions are balanced with the human touch wherever possible. Moving forwards, there is likely to be increased investment in RPA, IoT, and other emerging technolgies, which were slowly becoming the key focus areas for companies before the virus hit.
Supply chain transformation is often a straightforward journey but there are three key challenges that should be highlighted:
Last year we published a study that revealed China and India as outliers in digital transformation and that finding is consistent with the digital transformation in the supply chain. India and China, along with Brazil, Russia South Africa, Europe and the US, lead the way. Businesses in other countries will have to start their journey in the next 12-24 months or risk falling even further behind their global competitors.
Covid-19 has forced businesses to re-evaluate many aspects of how they work: with supply chains coming into sharp focus as they navigate radically different operating conditions, while meeting (and surpassing) customer and employer expectations.
Businesses should take this time to analyse their supply chain, locate weaknesses and use digital tools to improve them. Healthcare and education may be in the spotlight for now, but supply chain technology is sector agnostic and can be transformative for any business that takes the time to invest and integrate.
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