Building a More Resilient Supply Chain With Digital Technology

Flexibility in supply chains can be impacted by shifting customer needs, supplier backlogs, transport interruptions, stockouts and more. While these challenges cannot be avoided in all cases, companies can enhance their problem detection and responses capacities.

Digital technology has played a key role in this. Information visibility of supply chain platforms in the modern era can give the organizations better transparency of inventory, suppliers, orders, warehouses, and transportation activities.

What makes a Supply Chain Resilient?

A resilient supply chain is one that is able to adapt and react to disruption and maintain service to customers.

Resilience can involve:

* Multiple sourcing options

* Accurate inventory information

* Reliable suppliers

* Flexible transportation

* Strong communication

* Effective forecasting

* Real-time visibility

* Contingency planning

Many of these areas can be facilitated with technology that can come together and relate operational information.

Supply chain visibility (SCV) is a crucial component of logistics.Supply chain visibility (SCV) is an essential part of logistics.

The key is in understanding what's going on throughout a business' supply chain.

For instance, when the supplier delivery is delayed, the stock and inventory team should be aware of the impact on inventory and orders to customers.

SCM software can integrate information from various operational areas into a single place.

Monitoring Inventory Levels

Inventory is a key element of the supply chain's resilience.

An understocked inventory can become a problem of stockout while an overstocked one can cause carrying costs.

Digital systems can be used to give information about:

* Current stock

* Incoming inventory

* Reserved inventory

* Inventory by location

* Sales trends

* Replenishment requirements

This information can aid businesses in determining the right balance between availability and stock-in-trade investment.

Managing Supplier Risk

Supplier performance can be a significant factor with regards to supply chain continuity.

Businesses can leverage technology to track supplier lead times, delivery performance, accuracy while ordering, and more.

When a supplier fails to deliver on a consistent basis, there is a need for the organisation to explore the problem and determine other solutions.

 Improving Demand Planning

Consumer tastes and preferences can shift rapidly. Businesses should have correct details to prepare inventory and buying.

Historical sales, orders, seasonal trends, and other information can be used in demand planning tools to assist in forecasts.

Predictions will not be 100 percent accurate but with better information, businesses can make preparations for change in demand.

Connecting Warehouse Operations

Warehouses are an important part of supply chain resilience.

If products are stored in several facilities, companies must have a clear idea of which ones have what products on hand and how fast it can move to customers.

With connected warehouse and supply chain technology, view of inventory movement is improved.

For businesses interested in learning more about SCM technology, this resource in the supply chain management software category is worth checking out to gain insight into how digital solutions can help with inventory, procurement, fulfillment and supply chain operations.

Transportation Visibility

Delays can result from transportation problems.

Digital transportation tools can help companies track shipments and determine any exceptions.

Helpful information may consist of:

* Carrier

* Shipment status

* Tracking number

* Estimated delivery

* Delivery exceptions

* Transportation costs

This enables teams to react faster when issues arise.

The Role of Automation

Automation is a key piece of the puzzle for companies to address routine events quickly.

For instance, software can be used to issue alerts when the inventory levels drop below a predetermined threshold or when a shipment is delayed.

Automated workflows can also be used to aid in purchasing, order processing, replenishment and reporting.

Data analysis tools can be used to make better decisions.Analytics tools can be used to make good decisions.

Data from the supply chain can be useful to get insights into operational performance.

Businesses can analyze:

* Supplier performance

* Inventory turnover

* Stockout frequency

* Order fulfillment

* Delivery performance

* Procurement trends

* Warehouse productivity

These insights can guide management to recognize risks and prioritize improvements.

Incorporating business systems into a unified whole.Uplifting business systems to a cohesive entity.

Part of supply chain resilience is the ability of the various systems to communicate.

An organisation can utilise ERP (Enterprise Resource Planning), warehouse software, ecommerce, transportation and accounting applications.

These systems can be integrated to minimize data entry and information gaps.

When teams work in a connected technology environment, they can work from the same information.

Get ready for disruptions in the supply chain.Anticipate supply chain disruptions.

Use technology in conjunction with good planning.

To get ready, companies can:

1. Identifying critical suppliers

2. Monitoring inventory risks

3. Developing alternate sources of supply

4. Reviewing transportation alternatives

5. Defining emergency procedures

6. Tracking supply chain KPIs

7. Regularly reviewing forecasts

8. Maintaining accurate data

These activities can be made more easily monitored and coordinated with technology.

Measuring Supply Chain Resilience

The performance of the supply chain can be assessed based on a number of key performance indicators (KPIs) that businesses can monitor.

Examples include:

* Supplier lead time

* On-time delivery

* Inventory turnover

* Stockout rate

* Order fulfillment time

* Forecast accuracy

* Shipment delays

* Inventory accuracy

Periodic review may be used to detect the vulnerabilities before they become serious issues for the organization.

Conclusion

Being able to see what is happening, plan ahead, be flexible, and communicate effectively are key to supply chain resilience. These requirements can be met using digital technology, which allows for inventory, procurement, warehouse, order, supplier and transportation information to be connected.

Technologies must not be the solution to all businesses' supply chain problems. Rather, it must be combined with robust processes, supplier relationships, contingency planning and continuous improvement.

Combining people, processes and technology, organizations can create supply chains that are more resilient in the face of market fluctuations and disruptions in operations.