Digital transformation is inevitable, and digital transformation within the supply chain has the potential to streamline operations, reduce costs, and offer a better work environment for employees. The result is improved customer service, but the real implications of supply chain analytics go much further. The proper use of supply chain analytics is crucial to digital transformation and ensuring the ability to compete with Amazon, especially as new services and capabilities make interacting with Amazon more lifelike. Those interested in putting the power of supply chain analytics to work need to understand how they affect the digital transformation of your organization.
Challenges of Implementing Supply Chain Analytics
The difficulties of implementing supply chain analytics reflect many of the challenges of digital transformation in any industry. People may not want to make the changes necessary to use analytics, and for supply chain leaders, the cost of inaction can be steep. To overcome the challenges, your organization needs to understand the top obstacles that you will face in digital transformation. These include:
- Disparate systems.
- Poor visibility into systems.
- Employee resistance to change.
- Potential downtime during implementation.
- Poor understanding of how to use the system.
- Inability to act on data to improve performance.
The Digital Supply Chain: The Landscape, Trends, Types, and the Application in Supply Chain Management
Digital Transformation and Supply Chain Analytics Provide a Sense of Direction
The defining factor between traditional supply chains and those focused on a digital future is data. The ability to collect, use, and apply data sets supply chain leaders apart from followers, and it is the process for empowering supply chain leaders with the insights and information necessary to make informed decisions. Moreover, the use of supply chain analytics can help workers improve productivity, reduce nervousness, find new ways to add value to your supply chain, optimize warehouse layout, and much more, explains Kevin McGirl of Supply Chain Management Review.
How to Implement Supply Chain Analytics in Your Facility
Implementing supply chain analytics in your warehouse and throughout your supply chain network represents a significant challenge. Poor planning in the process could result in lost opportunities to connect systems and assets to the overarching analytics system, and an opportunity for data loss will naturally increase risks to your organization. Instead of putting your business at risk, follow these best practices to implement supply chain analytics successfully:
- Know your strengths and weaknesses.
- Consider upgrading your warehouse management platforms.
- Connect warehouse assets and systems via the Internet of Things.
- Understand consumer and employee patterns.
- Ensure that data migration does not result in data loss.
- Use scalable system configuration tools to automate new system implementation.
- Avoid unnecessary modification to systems to leverage analytics.
- Take advantage of a third-party expert, such as Veridian, to help you with implementation.
Move Your Organization Into the New Age With Digital Transformation
Digital transformation is inevitable, and supply chain leaders that understand the digital transformation of supply chain management can successfully leverage new systems and take advantage of innovative technologies. As the power of data analytics increases, integration will play a more significant role in ensuring data accuracy and valuable insights.