The only constant thing about the digital age is that it’s ever-changing. As a result, the supply chain along with other systems of organizations remains exposed to digital disruptions all the time. This prompts enterprises to reshape their supply chain into an agile system. However, before heading out for factors that facilitate an agile supply chain, it is necessary to understand the role of agility in the supply chain management.
In supply chain management, market demands can’t be met solely with faster execution to new changes or disruptions. To gain market advantages, it is quintessential for enterprises to consider ‘agility’ in a holistic sense. The first step towards this is to have a better response to the changes, followed by a faster execution of strategies to promptly fill in the customer demand. Besides optimizing the physical design of the supply chain, importance should be given to product distribution ERP and customization. However, future demand or performance can never truly be predicted. This is where digital transformation finds a place to sneak in the changing landscape.
Digital transformation is responsible for the ascent of the supply chain to new levels. The process automates the process with cutting-edge supply chain management software while declining the lead time. Simultaneously, a streamlined digital connection with retailers and other actors in the supply chain promotes visibility and facilitates better communication for seamless functioning in the supply chain. This framework of product and service distribution—networked model, where data resides in the cloud and is accessible to everyone—facilitates simultaneous action as soon as an event occurs.
Another important aspect to consider when we talk about improving the supply chain is to get over strategies and technologies of the past, as what might have worked yesterday may not be useful in the future. For example, Enterprise Resource Planning (ERP) and Advanced Planning System (APS) implementation were once considered a game-changer in tackling challenges of the supply chain. Meanwhile, today, these are replaced with the growing association among operational processes and technology implementation in driving agile, purpose-led and pivotal transformation. An agile supply chain harnesses new digital technologies to upscale business growth in a shorter time. This includes a process where planning, manufacturing, logistics, procurement, and other activities in the supply chain are end-to-end connected by digital technologies.
One of the greatest perks of the digital transformation of distribution businesses is that it creates an agile supply chain, which further facilitates cross-functional and collaborative working. This transformation helps in breaking down the conventional silos and encourages a networked work-process for faster implementation and quality output.
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