How IT can lead supply chain transformation?

 

Hi All!

I'm Sreelakshmi M N, second year MBA student at Amrita School of Business Coimbatore. Recently I came across an article that discussed about how IT can change the SC in the coming future.

Outdated programming is not only a headache to tackle. It's a blocker for company. Supply chains have become a driver of competitive differentiation for businesses at a time when unexpected changes in the delivery of products to customers have dominated headlines, with 65 percent claiming that their supply chain will be a source of differentiation in the coming year. But the technical framework underpinning the supply chains appears to be a weak point.For all or part of the preparation, many businesses admit they still rely on spreadsheets.

This puts new pressure on businesses to push, or be forced out of business, innovation. In the midst of this, CIOs, IT technology VPs, system administrators and other IT professionals are charged with one of the most daunting jobs: how to transition the supply chains of businesses to modern, improved systems without losing the current competitive advantage.

1. Why IT should drive innovation?

In many ways, IT teams have never been better placed to initiate the transformation of the supply chain of their businesses. Their knowledge of current systems and processes and their knowledge of the technical foundations that underpin future capabilities, such as artificial intelligence and machine learning (AI / ML), ensure that they are uniquely capable of balancing the demands of the current supply chain with prospects for the next round of innovation.The convenience of both best-of - breed and single vendor solutions is a lot of widely held but seldom challenged beliefs. If they want to choose the best choice for their company, IT professionals will need to sniff out the reality behind these convictions. Cost-effectiveness is a crucial aspect to consider. A single vendor can provide great value, it is simple to believe, but even have-it-all solutions require additional applications. Until committing, consider all possibilities.

2. In-house management or software-as-a-service adoption?

Your company is probably already dependent on a combination of on-premise and SaaS solutions for business needs. Resourcing and customization are the deciding factors when evaluating alternatives for the supply chain. SaaS could be the best choice if there's concern that your supply chain won't have the resources to support regular updates. On-premise systems would have more versatility to suit your needs if you regularly configure them.

3. Investing now in infrastructure to encourage progress or waiting for future developments?

In order to retain a competitive advantage, businesses don't always have to be on the cutting edge of technology, but there are make-it-or-break-it moments where failure to implement the right infrastructure will set companies back for years to come. The supply chain is experiencing a boom in technologies, such as AI / ML, digital twins, and always-on algorithms, that will change planning processes for the foreseeable future.