Six Ways Digital Transformation can Enhance Performance of Supply Chains

By admin_user In Digital Transformation On July 1, 2021

industrial supply chain

Digital transformation solutions drive a new era in supply chain management. Unlike a traditional supply chain, the advanced industrial supply chain can blur the lines between the digital and physical worlds while bringing suppliers and customers nearer. With advancements in big data analytics, artificial intelligence, AR, and machine-to-machine interaction,  the digitization of the industrial supply chain can reduce inefficiencies and operational costs. 

In recent times, the pandemic has disrupted global supply chains and as a result, all industry sectors bear the brunt of delayed production and missing deadlines. Here, digital transformation solutions can lend a helping hand and assist companies to mitigate risks and increase resiliency against the pandemic by strengthening the supply chain. With the help of the digital supply chain, companies can stay ahead of the curve. 

Let’s go through the top ways digital transformation reshapes the traditional supply chain model and offers the advantage of business intelligence. 

Six ways digital transformation solutions impact supply chain

1. Smart Supply Chain

Automated warehousing, remote fleet management, and real-time cargo tracking have paved the way for smart logistics & transportation. GPS technology based on cloud and BLE (Bluetooth Low Energy) concept can provide the real-time asset status and location to strengthen the supply chain. Digital transformation solution providers integrate Industrial IoT technology to enable companies to leverage supply chain 4.0 and grow their business.

Business Intelligence and BI can make the supply chain ready to meet the variable customer demand. As a result, the smart supply chain can increase visibility, resilience, and responsiveness. It also reduces human intervention to increase productivity. 

2. Digital Thread

We can define the digital thread as a communication framework for sharing information with all consumers in upstream and downstream manners. The digital thread can create a constant feedback loop by integrating workflows and people. It also improves data communication to make the supply chain more responsive in different aspects including design, volume, reworking, and manufacturing.

The digital thread can act as a cornerstone between suppliers, customers, and your company, and you can get more efficiency at reduced costs. Better business intelligence and insights into customer behavior are some benefits of the digital thread in the industrial supply chain. 

Also Read- Impact of Digital Transformation in Logistics & Transportation

3. Value Co-Creation

Think of a new level of transparency and sharing of information in the supply chain. Digital transformation solutions ensure continuous and real-time communication with higher visibility into everything from the inventory viewpoint. It is possible to share best practices with internal and external stakeholders with the assistance of a reputed digital transformation company.

End-to-end visibility while accessing data across different business networks and improved interoperability can enhance value co-creation. In this synergistic co-creation, both opportunity and savings are shared between different business partners.  

4. Demand-driven Supply Chain

These days, every industry gets the sheer amount of data daily, and drawing actionable insights from it can change the game. Traditional methods for predicting the demand are based on historical trends and levels, but, they are not as accurate as of the digital method. It is simply because digital methods can predict the current demand environment.

With embedded sensor technologies, it is easy to monitor, collect, and share information as and when necessary. Smart data analysis can improve the accuracy of demand forecasting and predictive technology also assists companies to make insightful decisions on time. 

5. Cyber Risks

Digital transformation has broken the geographical barriers and traditional ways of doing business. However, it opens the doors for hackers and bad actors. This can increase the risk for the supply chain as well. Any security gaps in the supplier’s networks can give a chance to hackers. Third-party vulnerabilities can lead to a major cyberattack and therefore, it is necessary for the companies to remain vigilant.

The digital transformation solution company can assist enterprises to address these risks effectively and follow the best practices. In a way, enterprises can secure their supply chains effectively while leveraging the benefit of transformation. 

6. Customer Expectations

In this technology-driven age, customer’s shopping habits and expectations have been changed. Today’s tech-savvy customers have little tolerance for any incorrect orders, and they are not willing to accept any delays in delivery. Therefore, the logistics and distribution network needs to be digitized. During this pandemic age, most customer transactions and shopping shifted online, and companies have started establishing their eCommerce capabilities.

Some B2B organizations may even opt for DTC (Direct-to-Consumer) selling. Digital order forms and invoices can provide better experiences to the customers. Thanks to digital transformation solutions in the industrial supply chain, businesses can leverage advancements in IoT, AI, and data analytics technologies. 

Concluding Lines

In a nutshell, digital transformation solutions enable modern enterprises to improve their supply chains in a cost-effective way. You can start leveraging the benefits of advancing technologies and Supply Chain 4.0. A comprehensive vision with digital transformation can make the supply chain of your business ready for the future. 

Rejig Digital is a leading digital transformation company. We build customized digital transformation solutions for core industry sectors including manufacturing, automotive, chemical, BFSi, pharma, and transportation.

Do you want to make your enterprise ready for supply chain 4.0? We can assist you at every step of digital transformation. Just drop us a line at and we will get back to you soon with a proper strategy. 

Industrial Supply Chain