Strengthen Your Supply Chain Digitization

Supply chains have rarely known stress like this. Geopolitical turmoil, labor shortages, extreme weather conditions, and demand shifts have combined to create global logistical chaos. The reality is that the pain points we have experienced over the past two years are unlikely to ease in the near future.

In today’s constantly changing environment, companies can't rely on doing things 'just in time'. They are subject to fluctuations, both on the demand and the supply side, resulting in variations of forecasts and supply chain constraints. A traditional static process design with a single critical path can simply not cope with this complexity. What's more, teams are working with imperfect data and complex IT systems, and there are growing expectations for supply chains to lead efforts to tackle the climate crisis. The result is that only 1 in 5 companies have reached a sufficient level of supply chain resilience.

In just about every industry, technology teams don’t have to argue with leadership too fiercely to enact company-wide information digitization. All it takes for crucial corporate records to go irretrievably missing is for a paper to get caught in a gust and land in the recycling bin. Gone forever. Crisis ensues.

Now that most processes are digitized (even your grocery list) and technology has proven itself to be reliable, supply chain professionals should consider strengthening their supply chain through digitization. The more processes that workers can conduct within an online portal or entrust to automation, the more smoothly and resilient the supply chain will be.

For the next supply chain digitization effort you enact, make sure that you focus on these five steps to optimize your supply chain operations.

1. CLARIFY

The first step in any supply chain digitization push should be to ensure visibility into the entire operation. Supply chains have a lot of moving parts whilst they move parts. A transparent view of processes and progress spread across the globe can identify bottlenecks and opportunities for creating efficiencies. Integrating all your systems with one central portal is the best way to effectively monitor every supply chain segment.

2. AUTOMATE

Automation doesn’t replace humans. It enhances their work and when humans and machines work together, they can achieve more than either one can solo. The more processes you can entrust to machines, the more productive and predictable your supply chain will be.

When you’re shopping around for various digitization solutions, evaluate the automation capabilities. How much can be automated? Can you automate additional processes over time? Ask those same two questions about your own supply chain operations. Artificial intelligence, machine learning, and other automation technologies will only advance with time. Make sure that you’re designing your operations and technological support to insert automation where possible.

An area where automation is already saving time is the bill of materials management. Quotienting provides instant quotes for entire bills of materials (BOMs). And it takes minimal effort from you: simply upload your hundreds-parts-long BOM and have 4,000 electronic component offers at your fingertips.

3. PREDICT

An analytics and market intelligence solution allows supply chain leaders to make proactive decisions, not reactive ones. In an industry rife with disruption, organizations that are more versatile and adaptable win. To do so, electronic component distributors that utilize predictive analytics obtain actionable insights regarding future disruptions. When leaders have a view into the market’s next move, key details can help them capitalize on market shifts.

4. SCALE

The ability to smoothly expand and contract with demand is essential to ensuring a stable and sustainable supply chain. A sudden spike shouldn’t leave leaders scrambling for more products and customers tapping their feet. Nor should a decline in demand result in a warehouse overstuffed with spare parts. Luckily supply chain digitization aids in scaling.

Another aspect of scalability is confirming that technology solutions will be viable in the long term. This requires investing in digitization efforts that evolve with ever-improving technology. What may be a top-of-the-line solution today could be a dinosaur in a few years, thus negating past investments and incurring new costs. To guarantee that your digitization choices won’t become obsolete, ensure that it’s capable of updating to accommodate new processes and vendors and boasts a vast global distribution network. This way, you can reach customers quickly from anywhere and remain agile.

5. SOLIDIFY CONFIDENCE

Finally, digitization should give supply chain leaders concrete confidence in their operations’ sustainability and technical soundness. For instance, counterfeit parts are a major concern in the electronic component industry. A digitized component marketplace that vets every part's legitimacy can speed the purchasing process. Instead of researching the trustworthiness of the parts and getting lost reading thousands of reviews, buyers can just click “buy.”

An e-commerce marketplace that allows easy and worry-free purchasing for your entire BOM is an invaluable technological partner in any digitization effort.

SCM FOR THE FUTURE

Every supply chain operator should check off the above five steps to strengthen and smooth their operations in times of tranquility and turmoil. The volatility of today’s political and consumer demand landscape necessitates that the supply chain flexes and speeds along to match the pace of change. Therefore, the supply chain of tomorrow no longer centers around efficiency and cost management but rather on building a secure and resilient supply chain.