5 Factors Facilitating Supply Chain Transformation
The past two years have been nothing short of challenging. Considering the impact of a pandemic, global businesses have witnessed pitfalls in the supply chain space. Furthermore, with sustainable business models on the rise, companies are transitioning towards fast, robust and flexible supply chain operations.
From data management, logistics operations, vendor management systems to streamlined delivery, supply chain management has come a long way. Also, for an organization, transforming supply chain operations is like redefining core business priorities and objectives.
Supply Chain Transformation – Key Objectives
What is supply chain transformation?
Before investing in supply chain transformation, global enterprises must prioritize their business needs. Essentially, the primary objective of supply chain transformation is to optimize resources and align them to business goals.
Besides, in a technology-influenced era, the motive of supply chain transformation is to use state-of-the-art technologies to minimize effort and maximize results in terms of digital processing, business resilience, logistics and delivery, without compromising on quality.
From determining objectives, comparing current progress with future strategies to implementation of results, supply chain transformation can help small and medium-sized businesses realize their potential for sustainability, change and growth.
5 Factors Impacting Supply Chain Transformation
There are definitely different ways to look at supply chain transformation. From vendor management systems, supplier collaboration, accounts payment systems to much more, business transformation requires multiple strategies for perfect execution.
Here are the top 5 factors that can positively impact supply chain transformation.
1. Analyzing Supply Chain Analytics
Analytics and business performance metrics in supply chain must be closely monitored as they form core KPIs (Key Performance Indicators).
According to RFgen, indicators like product identifiers, supplier transactions, procedure costs and inventory management collectively contribute to supply chain transformation. Automated data management technologies can also play a major part in a smooth transition towards business growth.
2. People Training & Development
Just like technologies, people play a major part in supply chain transformation. Although automation, AI and machine learning have redefined the world of supply chain, the impact of people must not go unnoticed.
According to CORP/U, businesses investing in training and development of people within their supply chain core functions can expand their talent pool ensuring focus and effort towards a common goal.
3. Agile Process Environments
Modern and advanced supply chains are like an ecosystem. It constantly adapts and changes according to current business environments for accessible supply chain functions, flexible supplier networks and strategic benefits.
4. Mobility Leads to Transformation
Managing data, resources, people and technologies manually is definitely challenging. The impact of mobility can help businesses stay connected with suppliers across the world. Even during natural calamities, mobility can save costs in terms of logistics, supplier collaboration and vendor management.
5. Resiliency and Structure
The impact of supply chain transformation on global enterprises is definitely a paradigm shift. Thanks to resilient supply chains, the capability to resist disruptions and facilitate change can pave the way for new possibilities and responsive supply chain systems.
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