Digital supply chains are more customer-centric and aim to meet today’s three pillars of excellence in demand fulfillment: speed, personalization and choice. The added near real time visibility of supplier performance and customer needs lets supply chain owners develop more complex relationships with more suppliers - thus indemnifying themselves against most sources of disruptions. The result is often missed deadlines and unhappy customers.Ī digital supply chain, in contrast, provide significantly more visibility into the workings of the chain. A failure to perform by a subassembly provider or a shipper along the chain may not be discoverable for days or weeks. While conceptually simple, the linear pre-digital approach to supply chains is dependent on each step in the process performing about as expected.
Items tend to travel linearly, with each step dependent on the previous one. In a typical supply chain, the flow of goods involves designing a product, sourcing and procuring the raw materials and parts, making the product, estimating demand, planning how you’ll market the final product, taking orders, arranging logistics and sales channels and then providing customers with visibility into their orders. The most impactful spending went toward technologies that underpin the so-called “digital supply chain” and building the processes that enable it. Organizations that had invested in making their supply chains sustainable were better prepared for these changes and saw those efforts pay off. Suddenly, concepts like supply chain risk, visibility and resilience - once the province of the manufacturing sector - are common topics in business conversations and on front pages of many mainstream media outlets. East, Nordics and Other Regions (opens in new tab)Ĭommerce disruptions driven by tariffs, trade wars and a global pandemic have catapulted supply chains into the forefront of business conversation.
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