In this increasingly dynamic era, we are confronted with significant challenges in the supply chain, demanding all business processes to operate at lightning speed. The rapid development of e-commerce and various digital shopping platforms has driven consumers’ desire for even faster product deliveries.

Moreover, the unexpected COVID-19 pandemic has had a profound impact worldwide, with one of the most affected sectors being the supply chain. An innovative solution has emerged in the form of the Digital Supply Chain (DSN), which addresses the growing complexities of modern supply chain challenges.

DSN represents processes, organizational structures, and technologies that enable seamless and unobstructed planning and execution within the supply chain. Unlike the slow and linear nature of traditional supply chains, DSN operates more dynamically, integrating various components and supported by fast and continuous flows of information and analytics.

Transitioning to the Digital Supply Chain requires embracing new business models and letting go of outdated concepts deemed “safe.” DSN demands the inclusion of services with every offered product, adding value to the value chain that was previously solely focused on the product itself.

Additionally, a successful strategy must strengthen customer relationships and make it easier for them to access our products. In the Digital Supply Chain, various supply chain flow models are needed to cater to diverse needs, rather than being restricted to a single pattern as in traditional supply chains.

By adopting these new principles of service, inventory, and cost, the vast potential of DSN can be realized. To achieve success in building an integrated Digital Supply Network, companies must embody four key characteristics known as RISC: rapid, intelligent, scalable, and connected.

1. Rapid

Speed is the key to the future. By making the supply chain responsive, proactive, predictive, real-time, and measurable, companies can swiftly seize new opportunities for growth and create a competitive advantage.

2. Intelligent

One of the strengths of DSN is its ability to provide valuable insights based on existing data. This data can be processed using artificial intelligence (AI) to predict future situations and accelerate the innovation process.

3. Scalable

DSN offers considerations and measurements, such as whether the company needs to increase or reduce the number of suppliers and whether investments in specific assets need to be raised or lowered according to requirements. This aims to maximize efficiency.

4. Connected

DSN operates through cloud and analytics to provide real-time visibility across the entire supply chain. Additionally, DSN enables closer internal and external connections through collaborative systems.

Harnessing disruptive technologies and building a digital supply chain will help overcome the obstacles faced in traditional supply chains. Moreover, this approach will strengthen a company’s value through integrated services that enhance competitive advantage. With the implementation of the Digital Supply Chain, companies will have a deeper understanding and control of the entire supply chain process from start to finish, facilitating improvements that positively impact relationships with suppliers, distributors, and, of course, customers. Ultimately, the Digital Supply Chain not only creates efficiency in the supply chain but also fosters resilience in facing crises, as we have experienced with the COVID-19 pandemic.

References

Indonesia, M. V. (2020, July 24). Digital Supply Chain, Jawaban atas Tantangan Supply Chain yang Semakin Dinamis. Retrieved from Machine Vision: https://www.machinevision.global/post/digital-supply-chain-jawaban-atas-tantangan-supply-chain-yang-semakin-dinamis

https://www.independent.co.uk/life-style/intelligent-people-are-more-easily-distracted-research-suggests-a6821596.html