supply chain Digital Tranformation

How can Digital transformation affect supply chain management?

Digital transformation is bringing a new era in supply chain management, only in which suppliers and customers interact in completely new ways, blurring the distinctions between the digital and physical worlds and obliterating old organisational boundaries.

The digitization of the supply chain has the potential to eliminate inefficiencies, lower costs, and increase flexibility all of which are important elements for increasing resale value.

Risk management isn’t the only goal of the digital supply chain. It can also provide a competitive edge because every node in the supply chain is tapped for business intelligence and increased collective value.


The traditional supply chain is being transformed in six different ways by Digital Transformation.

Connected supply chain:

At the current time of the industry, automated warehousing, cargo tracking, and remote fleet management, have the potential to revolutionise the industry. Asset tracking using cloud-based GPS and low-cost Bluetooth Low Energy can give real-time location updates, including when freight is in transit.

In addition, real-time tracking can be used to assess transportation performance and inefficiencies in delivery routes. Automation and business intelligence technologies have been essential in increasing adaptability and optimising the supply chain to meet changing client demands. Sensors connected to the internet can detect supply chain disruptions.

Demand-Driven Supply Chain Management

Although Supply chain management that is driven by demand is not a new concept yet there is new is the sheer volume of data available, as well as our capacity to extract meaning from it. Traditional demand forecasting methods are based on historical demand levels, but those single data points may not accurately reflect the current demand climate. Sensors embedded in the environment can monitor, gather, and report data, as well as respond to remote commands.

With the assistance of improved analyses of that data, the accuracy of demand forecasting and replenishment can be greatly increased. Furthermore, predictive analytics and machine learning, while not perfect, can account for these extra characteristics to reliably anticipate demand, reordering, and restocking.

Formation of the Digital Thread:

The digital thread is a communication structure that creates a continuous feedback loop by sharing information with all data consumers upstream and downstream. The digital thread necessitates the integration of workflows and people, in addition to connecting data and technology. With better data exchange, the entire product chain will be more responsive to changes in design, manufacture, volume, reworking, and after-sales service. Finally, developing this digital thread between suppliers, your company, and customers is the cornerstone of the transition from supply network to integrated value chain, where suppliers and customers work together.

Co-Creation of Values:

The integrated value chain is built on a new degree of transparency and information exchange, including bidirectional communication and inter-company insight into everything from inventory levels, supply statuses, and shipping delays to future-focused aspects that predict demand shifts. To promote efficiency and interoperability, best practises are shared with both internal and external stakeholders. The ability to access data across business networks, commonly known as a “network of networks,” is crucial to end-to-end visibility. The premise is that combining data from all supply chain actors is more beneficial than using data from a single source.

Preferences of customers

As consumer buying patterns evolve, several companies are rethinking their distribution arrangements. At present time customers have little patience regarding their items that are late or inaccurate, so logistics and distribution from warehousing to order fulfilment to shipping must be completed. As a result, some companies are shifting away from direct store distribution and toward centralised distribution and real-time inventory management, allowing order points to be less dependent on warehouse inventory levels and more responsive to demand.

Companies are following retailers’ lead and developing their own e-commerce capabilities after the COVID-19 pandemic drove most customer transactions online. Some B2B companies may decide to sell direct-to-consumer and take advantage of retailers’ digital customer service methods. This involves developing digital order forms and online marketplaces that enable clients to communicate with you from a distance. Businesses can even simulate facility tours and highlight new products or service offers by utilising virtual or augmented reality capabilities.

Cyber risk:

Due to enormous advancement in technology, the rate of cyber risk inclines slightly, and it will grow in future also. Digital transformation is tearing down old barriers to innovation and collaboration, but it also increases the potential for bad actors to break in, boosting supply chain cyber risks tremendously. In order to obtain access to their ultimate targets, sophisticated attackers often use third-party vulnerabilities.

Hackers can use any security holes in a company’s supplier network to get access. Companies, on the other hand, can serve as an entry point for hackers to reach their supply chain partners and end customers, resulting in reputational damage and lost business, especially if the victim organisation is deemed cyber-negligent.Cyber risks should be assessed by all providers. Contractual provisions and explicit minimum standards should be implemented to address the highlighted risks. Measures should be proportional to the relationship’s risk and value.



What is Supply Chain Transformation?

The main goal of supply chain transformation is to improve the performance of the supply chain.In general, supply chain transformation is totally based on the two different aspects which are digital investments and transformation management.

The precise technology and equipment assets that will be used in the transformation are referred to as digital investments. The utilisation and application of digital assets are referred to as transformation management. The following are elements of a successful transformation management process.

The main goal is to optimise the supply chain flow to meet the needs of the company. This frequently entails deploying new technologies to digitise supply chain activities in today’s commercial and technological ecosystem.

Amazon, which employs technologies such as driverless vehicles, is seen as a leader in supply chain transformation, setting the bar for what can be accomplished by reinventing how things are done. As a result, other businesses must react by taking similar steps in order to compete with enterprises who have effectively transformed their supply chains.


What are the examples of supply chain management?

As we know that supply chain management is used in order to create the latest product according to companies with the assistance of raw material.

Farming, designing, refining, manufacturer, packaging, transformation, and so on are examples of supply chain management. Logistically and technologically complicated, these both are global supply chains so there are new global supply chain management available who keep on eyeing the new process for various retail companies.


How many basic components of supply chain management?

Basically, there are five components of supply chain which are:


The first and important component of supply management is planning. With the help of planning you can control inventory and the manufacturer process.


Source will decide who produces goods and supplies because there are some certain standards which have to be completed by the suppliers. So, sources identify the ventores who will fulfill these requirements.


Another important component of supply chain management is make.According to the preference of customers, firms will make the product by using the raw material. Assembling, packing, testing these activities are performed in supply chain management.


Fourth component of supply chain management is delivery. Interaction with customers is an important part of supply chain management because it has a significant image of the organization.


In this component, the organization return the low quality, defective, expired products to the suppliers

How many Levels of supply chain management?

There are three levels of supply chain management available.

  • Strategic Level
  • Tactical Level
  • Operational Level


Lets us discuss these three level in a detail:

Strategic Level:

The company’s long-term decisions are made at the top of the supply chain management hierarchy which is Strategic Level. This level’s judgments set the tone for the whole supply chain process. Determining the items or services the company will offer is an example of a choice made at this level. This job entails tracking current market trends and client input in order to improve existing products or add new ones to the mix.

It critical for developing a cost-effective process that involves all levels of the organisation and ensures that every choice made appropriately represents the company’s overall objectives. This will ensure that all sections of the supply chain are working together to get your items to your clients and generate a profit.

Tactical Level

The supply chain’s short- and medium-term choices are handled by the second level of supply chain management. While the strategic level is responsible for general and ‘big-picture’ decisions, this is where the more detailed processes are usually specified. This is where manufacturing techniques will be defined in order to produce a high-quality product at a reasonable cost.

Decisions made at the tactical level play a significant impact in cost control and risk reduction. Here, the emphasis is on meeting client needs and delivering the highest overall value.

Operational Level

The most prevalent level of it is this one(Operational Level). At this level, the supply chain’s day-to-day operations, decision-making, and planning take place. When making operational-level decisions, corporations and manufacturing facilities sometimes overlook tactical and strategic considerations.

It is vital that operational leaders carefully analyse the options available to them and make decisions that are consistent with the overarching strategic and tactical decisions made.

Even though higher-level decisions are made with the goal of developing more efficient processes throughout the supply chain, operations managers must make hundreds of decisions every day to deal with the unexpected. Within the strategic and tactical frameworks, the best decisions are made.

Daily and weekly forecasting for resource and capacity planning, as well as logistics monitoring to ensure that enough inventory is available and that materials are available on time for production, are all parts of operational-level management.


The flow chart in supply chain management:

It is a process of loop. Flow charts in supply chain management designed different charts which assist the organization in the terms of understanding the concept of any product. Managers will be able to build more effective distribution channels, streamline warehouse management, and eliminate order errors by mapping out specific processes into flow charts, or workflows. All of these variables will boost customer satisfaction and lower its expenses in the long run.


Benefits of the flowchart in supply chart management:

Order Management:

The order management function is in charge of gathering, validating, and submitting all of the data necessary to fulfil customer orders. Flow charts can assist eliminate order errors and boost customer satisfaction by documenting essential processes in the order management process.


Distribution is responsible for everything from inventory and warehouse management to ultimate delivery of commodities or products to customers. Flow charts can aid in inventory location accuracy, shrinkage reduction, and order picking errors in the distribution process.

Material Management:

The collection, examination, and storage of raw materials utilised in the manufacturing process are all referred to as material management. Following company-defined procedures can reduce inspection errors, lowering scrap rates and raising first-pass yield.

Manufacturing & Production:

While some firms do not consider manufacturing to be a part of their  management role, it is a critical component of the supply chain process (for manufacturers). In the manufacturing facility, flow charts can assist minimise lead times and boost equipment uptime and usage.


How we can define your SupplyChain with Digital-transformation?

Brisklogic is one of the leading organizations in terms of database goods and services. Here you will find cloud-based data storage solutions that consolidate data from various platforms.

We’ll work with you to ensure that you have the ability to adjust your data warehouse to meet the needs of data integration.




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