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4 supply chain 2.0 characteristics to watch out for

Posted by CeMAT Team on 01-Nov-2016 11:27:42

Many supply chain professionals are on the cusp of an existential crisis; automate or become extinct. However, looking for the right technologies and building a fully automated and intelligent supply chain is a colossal task to say the least.

Although integration of various business systems is a big pain point for many organisations, supply chain 2.0 is said to be so transformational it is compared to the dot-com revolution. And further, supply chain professionals today are already using efficient tools, but many businesses report that their supply chains are not yet fully evolved

So how can businesses transition from inefficient supply chains to supply chain 2.0? In this post, we look at supply chain 2.0 and it’s four main characteristics to look out for in the hope that you can create a smarter and more efficient supply chain. 


What is supply chain 2.0?

Managing supply chains in a turbulent landscape of eCommerce and innovative new start-ups has presented many businesses with the challenge of becoming more competitive.

One of the most efficient ways of reducing costs while also speeding up delivery and improving the customer experience is achieving a fully automated and digital supply chain. Otherwise known as supply chain 2.0.

The digital supply chain evolution of today’s supply chains has been dubbed a state where organisations are able to establish control of their end-to-end processes in order to create a seamless flow of goods. 

Take a look at the four main characteristics below to look for if you’re looking to digitally boost your supply chain.

1. Intelligent

Intelligent supply chains are able to provide logistics managers actionable insights and automated execution. You’ll find intelligent supply chains often are the most innovative and will more often than not include bespoke solutions.

It may seem obvious that supply chains needs to be intelligent, but it is vital for businesses to integrate internal processes and technologies so that there is a flow of true demand information available in real-time. Failing to do this might mean you can’t react to challenges on the fly, costing your business precious dollars and possibly impacting the customer experience.

2. Integrated

If you find that logistics automation has helped you generate a lot of data, it’s important that each business system is able to understand changes in other areas of the business.

End-to-end supply chain collaboration is paramount to achieving smart and efficient supply chain. Breaking down silos and being able to see changes in real-time are two major aspects of a connected supply chain.

Intelligent and integrated systems really go hand in hand, and having the right application architectures to tie in all your business systems is critical to automation.

3. Responsive

Enhanced responsiveness is a key goal to any supply chain. Demand sensing and automated KPI reporting make it possible for businesses to rapidly respond to consumer buying cycles.

Having a responsive supply chains means you should be getting the right reporting and analytics to compare planned results with actually performance. Logistics statistical process control is another relatively new term that to the manufacturing environments that are fed supply chain operations information to reduce performance variability.

Metrics are critical to measuring the performance of your supply chain, but being able to see changes in real-time will be the future for many supply chain professionals.

4. Scalable

Getting all the right systems in place means you also need to be able to prepare for growth. You may be fully automated, and your customer experience is so attractive that you keep generating new business. Failing to scale your supply chain means you run the risk of losing customers to rapid business growth.

So how can you avoid this? Actively prepare your business for big opportunities ahead. This means you need to consider things like warehouse space, preparing your staff for growth, research into the potential of new technologies or even third party logistics providers. 


Topics: Supply Chain Management, Intralogistics, Logistics Automation