The digital supply chain framework and technology

 Greetings !!

This blog is about the digital supply chain framework in brief and how it enables technology in the SCM processes. I'm Suriya kumar pursuing MBA and specializing in the domain of operations. The facts that are given in this article are from my learning in designing a digital supply chain to operate from openSAP.

The brief about the framework for digital supply chain mentioned in my previous blog is given below

Design:

• Reduce time to market
• Innovate continuously with sustainability
• Deliver on customer demand

Manufacture

• Optimize manufacturing processes and minimize waste
• Improve collaboration with contractors
• Increase agility and responsiveness
  

 Deliver

• Improve speed, efficiency and sustainability
• Deliver perfect orders consistently and profitably
•  Increase utilization of warehouse and transportation

Operate

• Manage life cycle of physical assets efficiently and sustainability
• Predict and simulate asset behaviour
• Avoid unplanned downtime

Plan

• Creating a holistic view of demand with respect to suppliers and demand
• Balancing inventory and service levels
• Improving forecast accuracy 

How important are technologies in SCM ?

    With the world adjusting to the covid pandemic outbreak, causing disruption in many businesses supply chain management softwares are gaining importance with the capacity of reducing costs and improve visibility without sacrificing quality.

"SCM software can help businesses streamline processes using intuitive algorithms and analytic models to future-proof the major elements of supply chain management including integration, operations, purchasing and distribution." - Nick Ford, VP of Product and solution marketing, Mendix.

SCM softwares enables cost effective collaborations between sourcing mangers, procurement specialists, logistics operators and IT professionals.

"Whether a supply chain is augmented by installing new software and system isn't wholly dependent on tech but rather how it is used collaborative endeavour ..... efforts to improve supply chain performances should, therefore, involve changes to the ways that employees and teams share information, consider, problems and opportunities, reach decisions, and carry out actions they agree on" - McKinsey

Source: https://www.mckinsey.com/business-functions/operations/our-insights/digital-transformation-raising-supply-chain-performance-to-new-levels

Hence to remove silos by networking, improved decision making, focusing on automation, end to end customer engagement, continuous innovation and talent to drive the change should be the vision of enabling technologies in SCM processes