July 16, 2021
With the right support and expertise, stepping up to the challenges of digital transformation can yield powerful results. Looking at businesses who consider themselves novices in digitization, we can still see benefits, but they’re less than half of those for experts—with 3.6% revenue increase and 3.3% lower costs.
Transparency touches every aspect of your supply chain, and so is crucial to success in digitization. Building a collaborative supply chain has proven to give businesses a competitive edge by opening communication, building relationships with trading partners and optimizing logistics planning.
COVID-19 impacted business in major ways, exposing weaknesses in supply chains, sparking shortages, surpluses and resource retention issues all over the place. It also made a clear case for streamlined and digitized processes, and that’s why more supply chain managers have started working towards digitization.
Digitization has proven to reduce logistics risks and improve overall customer experience. But with single-digit percentages of late or incomplete delivery performance, this two-part stat speaks volumes for the potential of digital mastery—especially when compared to just 12% of novices reporting similar performance.
Strong leadership seems to play a major factor in successful transformation. This stat clearly illustrates that by prioritizing digitization, CEOs stand to achieve better results from the automated and streamlined processes of a digital supply chain.
If we can clearly see the benefits of an investment in digital transformation, we need to understand the totality of its cost. Proper training and upskilling are critical to a successful digitization strategy, and it’s important to understand these commitments from the outset.
Times are changing fast. And closed, opaque forms of communication are rapidly being replaced with more transparent, collaborative and accessible communication. Chances are if your business relied on phone, fax and email just 5 years ago, you're seeing a majority of your trading partners shift to more streamlined, data-rich methods of sharing information.
The experts are going big with connectivity and it’s paying off. This puts into perspective the prior stats about the importance of transparency, proper skills and support across the supply chain—they are critical to maximizing your digital transformation efforts.
This is compared to a study conducted five years ago that saw just 23% of companies doing the same. Make no mistake, the value of a digitized supply chain extends beyond streamlined logistics and time-saving automation. The data that can be captured and utilized from the extended supply chain is making a big impact today.
Organizations that go big on digitization by investing in the right skills, prioritizing wisely and supporting a comprehensive transformation can see returns much more quickly. If you’re looking for immediate next steps, see Elemica’s Digital Transformation overview, where you can get help developing the ideal roadmap for the digitization of your supply chain for fast-track ROI.
*This article cites a number of studies from the Council of Supply Chain Management Professionals (CSCPM), ToolsGroup, PWC, Capgemini Consulting and GT Nexus.