SUPPLY CHAIN 4.0: 6 WAYS DIGITAL TRANSFORMATION IS TRANSFORMING THE SUPPLY CHAIN>
BDO Digital
Digital transformation is heralding the next era in supply chain management, in which suppliers and customers come together in entirely new ways, blurring the lines between the digital and physical worlds and erasing traditional organizational boundaries. 1. The Connected Supply Chain âSmart logistics,â such as automated warehousing, cargo tracking and remote fleet management, can be transformative. 2. Demand-Driven Supply Chain Management Demand-driven supply chain management isnât new. What is new is the sheer amount of data available and our ability to draw insights from it. 3. Formation of the Digital Thread Improved data communication will enable the whole product chain to become more responsive in terms of changes in design, manufacturing, volume, reworking and through-life service provisions. 4. Value Co-Creation The integrated value chain is predicated on a new level of transparency and information sharing, including constant, bidirectional communication and inter-company visibility into everything from inventory conditions, supply statuses and shipping delays to future-focused factors predicting shifts in demand. 5. Evolving Customer Expectations As most customer transactions shifted online during the COVID-19 pandemic, companies are taking a cue from retailers and building their own e-commerce capabilities. Some business-to-business (B2B) organizations may even decide to shift to selling direct-to-consumer (DTC) and leverage retailersâ strategies for improving their digital customer service capabilities. 6. Cyber Risk All suppliers should go through an evaluation process that identifies cyber risks. The identified exposures should then be addressed with contractual provisions and clear minimum standards. The measures taken should be commensurate with the risk and the value of the relationship.
Link: https://www.bdo.com/digital/insights/digital-transformation/6-ways-the-supply-chain-is-transforming