How digitalization in supply chains can help overcome global supply chain disruptions.
While it seems like we’re living in a time of supply chain permacrisis, managing global supply chains has never been smooth sailing, and there have always been shocking events and unexpected supply chain disruptions. This won’t change; but what needs to change is our approach to tackling them and reducing the impact on business.
Latest research from Vinturas shows that US supply chain leaders are planning on increasing investment in supply chain technology by 7.5 percent over the next year. But where do organizations start, and how can they ensure that changes made in the digital world have a real impact on the physical one? 
Walk before you can run
There is so much discussion about AI and technical innovation in the supply chain, but supply chains are still failing because the basics aren’t in place yet. 65 percent of supply chain leaders are concerned about human errors and mistakes. Before even considering sophisticated automation or predictive analytics, companies must establish solid foundations, such as upgrading all paper based and other rudimentary systems that aren’t fit for purpose.
Digitizing everything and removing room for error is critical. After all, AI, predictive analytics, and automation are only as effective as the quality of the data they’re built on. Having the supply chain mapped out, digitized, and easily accessible is key.
Not just a dot on the map
Just knowing where products are isn’t enough. Even if companies create visibility in their supply chain, they can still be left ‘in the dark’ about its status. If something goes wrong, you may know it’s at a certain warehouse, but how long will it be there for? What impact will the delay have on it reaching the next destination and how can it get there sooner? All the good work put into laying the foundations falls if systems are operating in silos.
To make things work, true interoperability must be built into the supply chain ecosystem to ensure different computerized systems can connect and exchange information at all stages. Importantly, interoperability enables differing IT systems to work together while integrating digital identification systems, reducing data silos and helping to track goods from warehouse to delivery.
Consider yourself like air traffic control – there is no way you could do your job if you could just see the planes but not be able to inform anyone whether it is safe to land. If systems are not effectively communicating with each other then it is impossible to manage supply chains effectively too.
Integrating the full range of technologies present on the Internet of Things (IoT) can provide further visibility into logistics operations, from live weather monitoring and routing to the wear and tear on transport vehicles and more.
This data is then shared between each trading partner in the supply chain, providing supply chain managers with real-time oversight of a product’s journey. As a result, supply chain operators can quickly adapt to changes in demand, or if an issue or chain disruption takes place, the problem can be identified quickly and rerouted to minimize ongoing disruption and ensure business continuity.
Securing communication through private blockchain
Cyberattacks are tipped to be a big issue over the coming years, and there’s no denying the devastating impact they can have on supply chains and their ability to function.
Fortunately, secure data exchange platforms like blockchain can improve data security, offering robust security protocols, access controls, and audit trails that only permissioned network members can access.
Integrating blockchain security with interoperability strengthens the overall resilience of the supply chain ecosystem, facilitating collaboration and trust between trading partners. What’s more, interoperable, secure supply chains reduce bottlenecks and provide data that stakeholders or security partners need to respond to issues in real time. This is achieved through standardizing data security practices, minimizing vulnerabilities caused by isolated or incompatible systems, and enhancing security measures for trade as it moves along its journey.
Visualizing a data-led future
Once the systems are in place, an extra layer of strategic thinking is required, including diversifying sourcing locations, maintaining safety stock levels, and establishing alternative transportation routes. So then if any delays hit, there are clear processes and actions in place to resolve issues in a few clicks.
Of course, we all know there isn’t a silver bullet to fix the supply chain and free it of ongoing cyber threats, global shock events, and trade disruptions. However, better digitization of supply chains will more effectively inform decisions made by supply chain managers, helping to further protect against disruptions and streamline safe, effective operations.
By Alexander Style
As the General Manager, Americas at Vinturas, a global supply chain collaboration network helping multinational organizations run end-to-end supply chains faster and more efficiently. In his current role, Alexander manages the company’s operations across the Americas with a focus on strategic planning and sales leadership.