In its core essence, the performance of an entire supply chain model can dictate the overall success of a forward-thinking organization. Just like how conventional business models have transitioned into next-gen business offerings, supply chain solutions must evolve for MSMEs to leverage a strong competitive advantage.
Moreover, considering the contribution of the MSME industry to India’s GDP, it comes as no surprise that the future of supply chain management is heading towards the right direction.
Facing the turbulent effect of the pandemic, emerging MSMEs, especially in the manufacturing sector had a challenging time traversing through supply chain disruptions. However, with the rapid upsurge of technologies that can improve the efficacy of business processes across the supply chain, forward-thinking MSMEs definitely have a reason to think ahead.
From streamlining sourcing and procurement functions to prioritizing a customer-centric model, investing in digital transformation capabilities can help MSMEs take a giant leap towards supply chain resiliency. Technologies such as Artificial Intelligence and Machine Learning can provide the necessary platform for enterprises to build digital relationships with suppliers, invest in effective data security models and promote process efficiency.
5 supply chain challenges MSME manufacturers are mitigating with next-gen technology:
Let’s look back at some of the key supply chain trends in 2022 that shaped the MSME industry:
Advanced Data Analytics and Process Automation
Supply chain resilience depends on the effectiveness and transparency of business solutions from sourcing the right raw materials to the delivery of the final product, while building sustainable value chains. However, if MSMEs were to rely on conventional supply chain solutions, which were considered ideal before the pandemic, the transition to digital adoption would definitely seem like a far-fetched reality.
Therefore, for an experience built around customer-centricity and enhanced process visibility throughout the supply chain, investing in automation and advanced data analytics can make a whole world of difference.
With the help of AI-driven data management solutions, enterprises can digitally track orders, compare vendors based on competencies and most importantly, reduce manual intervention.
Supply Chain Agility and Flexibility
The goal for any enterprise looking to streamline business functions across the supply chain is to have a flexible structure that ensures a smooth transition across each and every step of the value chain. Like the COVID pandemic, disruptions in any business environment are inevitable. Therefore, to move towards digital excellence, MSMEs must adopt process agility as a core construct.
Furthermore, by digitizing independent supply chain models, organizations can predict unexpected events and foster a culture that thrives on innovation.
E-Commerce – The Game Changer
For an organization to fulfil or manage the demand-to-supply ratio, it’s important that supply chain models leverage the power of e-commerce. With packed warehouses, manual analysis of customer requirements can lead to inefficient sourcing of raw materials and compromised quality in terms of product delivery and customer experience.
Living in a digital-ready India, it’s crucial that MSMEs focus on an omnichannel experience. By using a single platform, organizations can streamline their supply chain solutions, offer digitized updates to customers and explore opportunities to diversify their portfolio.
Digital Collaboration – Redefining Supply Chain Performance
For future-ready supply chain performance, it’s vital that emerging MSMEs realize the importance of collaboration across different facets of the supply chain.
According to a KPMG report, “67% of CEOs are investing in disruption detention and innovative processes to mobilize effective flow of goods and mitigate risks.”
Therefore, optimizing an agile supply chain using digital collaboration channels can improve forecasting, facilitate successful onboarding of distributors and drive sustainability.
SAP, as a technology partner has and continues to inspire the Indian MSME community with technologies that pave the way for innovation, digital transformation and business resiliency. With solutions that span across Supply Chain Management, Human Capital Management, Digital Business Excellence and Artificial Intelligence, partnering with SAP is your gateway to reimagine business visibility.
For more on how your enterprise can transform supply chain operations, click here.