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Author's profile photo Denys Ilyich

How To Prepare For A Supply Chain Digital Transformation

Supply chain digital transformations for enterprises comes with it several improvements to the supply chain. Extensive management of the supply chain allows businesses to respond quickly to issues that may affect delivery systems and will enable them to react in real-time to changes within a shipping route. By looking at the companies that have previously invested in digital supply chain management (SCM) and learning from their example, companies can learn from their benefits.

Most Impressive Benefits from Digital Transformation

Changing from a non-digital to a digital system for the management of supply chains leads to several benefits in how the entire system works. Most business leaders claimed that changing to digital management surpassed their expectations. More than half of the businesses that switched to a digital method saw lowered costs. Digital SCM systems resulted in a more optimal flow of resources across the entire system, allowing for more efficient delivery.

How Businesses Leverage Digital Transformation

Digital SCM has several significant impacts on how the business operates. Digital management allows data to be available through the entire supply chain, allowing for real-time data on a company’s customer demand. Supply chains can implement strategic buffers to deal with times of increased demand. Additionally, this can lead to positive customer interaction, as well as ensuring that customers can experience full customization of their orders and have on-time delivery. In some cases, delivery can even be tracked in real-time if the business invests in the technology.


Real-time data used for strategic buffering of resources can also be used to help a company reduce its risk. Less product needs to be ordered to cater to customer demand if there is already a track of each product’s location within the supply chain. In times of high demand, the supply chain manager can reroute the goods from a lower demand area. Business insights offer strategies that the company can utilize to innovate. Innovation makes the business stand out and is likely to attract customers who want to experience something new.

Taking the Next Step

Digital SCM lends itself to being used as a base for innovation within the company. To bring about better service, almost one-fifth of the companies that have implemented digital SCM have also invested in using AI technology for analytics of the data collected through their SCM system. Having a sophisticated digital SCM system lets companies put new technology in place with far less overhead. The more businesses invest in their technology base, the better they are equipped to become innovators within the industry.


Among the most significant impacts that a digital SCM offers to companies is through better customer interaction. In the consumer space, the Internet of Things has played a large part in transforming our overall experience with products. Companies like Svakom, known for the remote vibrating egg, leverage digital SCM to help customers get goods faster, cheaper, and at a higher quality than competitors. With a digital SCM in place, shipments are on-time, or delays can be communicated directly to the client, and the costs saved by the company can be passed on to the consumer. In a single fell swoop, an implemented digital SCM manages to provide two of the three things customers desire the most.

What Digital Transformation Offers

For a company, the idea of digital transformation for a supply chain seems like a lot of hassle. Many companies have established analog ways for their supply chains to operate, and they work just fine. However, the benefits a digital SCM offers to a business is worth the discomfort of changing. More efficient planning for the company, better customer interactions, alignment of strategic objectives with practical methodology, and innovation ahead of competitors are all good reasons for a business to consider transforming its supply chain management into a digital format.

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