Digital Transformation of Supply Chains

| Point of View

Digitization has touched upon all aspects of businesses, including supply chains and operating models. Today, technologies such as RFID, GPS, and sensors have enabled organizations to transform their existing hybrid (combination of paper-based and IT-supported processes) supply chain structures into more flexible, open, agile, and collaborative digital models. Unlike hybrid supply chain models, which have resulted in rigid organizational structures, inaccessible data, and fragmented relationships with partners, digital supply chains enable business process automation, organizational flexibility, and digital management of corporate assets. In order to reap maximum benefits from digital supply chain models, it is important that companies internalize it as an integral part of the overall business model and organizational structure. Localized disconnected initiatives, and silo based operations pose a serious threat to competitiveness in an increasingly digital world. We believe a holistic approach to digital transformation of supply chain, starting with a digital strategy and a digital operating model will set the direction for integrated execution. This will not only enable organizations to realize the untapped potential of existing capabilities, but also to achieve higher performance and ultimately create greater value.