SUPPLY CHAIN DIGITIZATION: KEY CONSIDERATIONS FOR 2021 AND BEYOND - A TruckNet Digital Whitepaper - Trucknet ...
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Whitepaper | Supply Chain Digitization: Key Considerations in 2021
A TruckNet Digital Whitepaper
SUPPLY CHAIN DIGITIZATION:
KEY CONSIDERATIONS FOR
Su 2021 AND BEYOND
TruckNet Digital | 2021 1
Whitepaper | Supply Chain Digitization: Key Considerations in 2021
complexity of the supply chain and logistics
requirements. Companies need to develop
capabilities to manage varied requirements
across these multiple channels without
MODERN SUPPLY CHAIN: increasing cost or creating conflicts among the
channel partners
o Traditional channel partners require
NEW OPPORTUNITIES accurate inventory control to ensure the
availability of the products
BRING NEW CHALLENGES o E-Commerce marketplaces require
speed, last-mile capabilities, and the
ability to comply with the terms and
conditions of the marketplaces
o Direct to Customer(D2C) requires a deep
understanding of the demand patterns
and the ability to integrate channels to
M anufacturing and retail industries across the
globe are undergoing massive change, owing to both
ensure timely fulfillment
• Risk Management - Supply chain managers have
internal drives for higher efficiency and productivity the responsibility to manage multiple supply
and increasing external pressure from economic, chains within the same organization, third
geopolitical, and other competitive forces. This parties, vendors, and other organizations while
means companies need to brace for disruptions from ensuring a good customer experience across all
the existing competition, or unexpected alternative the distribution channels. In a lean supply chain,
sources, and new lateral sources at a higher a failure can snowball into larger operational
frequency than that of the earlier times. In this hyper- risks. The difference in survival and extinction can
competitive world, success is highly contingent upon be whether an organization is ‘Risk blind’ or ‘Risk
the ability to drive transformation across functions to Resilient’
achieve previously unreachable efficiencies. o Redundancy in vendor pool to ensure
As businesses evolve, the modern supply chain must smooth supply of raw materials and
evolve to support the ever-changing demand services
patterns, emerging distribution channels, and o Ability to continuously evaluate and
internal complexities. The challenges faced by the identify vulnerabilities on an ongoing
supply chain and logistics professionals are basis
multidimensional: o Ability to efficiently manage inventory
risks in the distribution channel by closely
• Multi-Channel Complexities – Consumers and linking it to the demand drivers and
customers buy products across multiple demand cycles
combinations of online, offline channels and with o Creating the necessary data framework
each channel having different expectations on to bring transparency and enable data-
pricing, availability & delivery lead times. As the driven decisions
number of routes to market increases so is the
TruckNet Digital | 2021 2
Whitepaper | Supply Chain Digitization: Key Considerations in 2021
• Rising Cost Elements – Profit margins are under
continual pressure as costs across the supply
chain continue to rise. The cost variations are
happening across the board in disparate
proportions, and it needs granular visibility to KEY CONSIDERATIONS:
drive cost efficiency. Some of the major
contributors include:
o Increase in transportation cost owing to REIMAGINING
fuel price increase
o Increase in cost of raw material and labor THE SUPPLY CHAIN
o Higher cost of storage, transfer, and
management owing to increased
complexity
As businesses evolve further in the digital era, the
supply chains need to evolve simultaneously to
keep pace with the realities of the new Within this continuously changing business
economies and manage costs, complexities, and environment, the traditional supply chain functions
risks to ensure survival and growth in the long continue to transform through innovation in
term. technology, processes, and business practices. While
the transformation approach can vary across the
organizations, three common attributes are
prevalent across the supply chain leaders:
Reimagining the Supply Chain: Optimization & Collaborative Execution
TruckNet Digital | 2021 3Whitepaper | Supply Chain Digitization: Key Considerations in 2021
• Reliability and Resilience – The logistics and
supply chain function is driven by an intricate mix
of a large number of stakeholders responsible for
driving a set of tasks efficiently. The ability to A SOLUTION FRAMEWORK:
build enough redundancy throughout the
network will ensure the continuous
uninterrupted operation of the network. OPTIMISED
Successful networks have built-in mechanisms to
continuously monitor impending risks in planning ORDER EXECUTION IN
and execution along with the necessary risk
mitigation plans. LOGISTICS OPERATIONS
• Responsiveness and Agility – Expanding demand
and route to market creates complexity in the
supply chain but the successful organization will
be able to navigate through these complexities by The supply chain function across most
developing processes and tools to reduce cycle- organizations is a people-driven endeavor. The
time for response and sense these trends in resources deployed in the supply chain are not
advance and align their network to their limited to the internal stakeholders, as it also includes
advantage. As uncertainties increase and the partners from planning, transportation,
business cycles continue to get shorter, the ability warehousing, suppliers, and other third parties.
to respond to change and respond faster than the Considering the dynamic nature of digital
competition is what separates the best from the technologies and varying levels of technology
rest. Responsive supply chains bring flexibility in savviness among the stakeholders, an iterative
planning and execution to effectively manage the transformation approach that works with people,
variation in demand across business cycles. rather than around people or against them can
deliver greater impact with an easier implementation
• Level of Collaboration – To achieve high path.
reliability, resilience, responsiveness, and agility,
Historically, the lack of accessible and
greater collaboration among the stakeholders
affordable technology solutions has shaped the
including suppliers, partners, and third parties is
manual resource-intensive planning and execution
crucial. A technology-led collaboration
paradigm of supply chain networks. In recent times
framework will bring transparency, drive
with the onset of cloud and mobile computing,
standardization of processes, and enable data
technology has become more and more accessible
integrity to aid faster decision-making ability.
and affordable. This has resulted in a massive
opportunity for digital technology-led transformation
in the industry.
This framework advocate for an iterative
process of continuous Optimization and
Collaborative Execution through the integration of
TruckNet Digital | 2021 4Whitepaper | Supply Chain Digitization: Key Considerations in 2021
technology with people, processes, and management Collaborative Execution – The bulk of the supply
infrastructure of organizations. chain risks can be attributed to the lack of
transparency, standardization, and data integrity
Optimization – Optimization at all levels is business-
across the different legs of supply chain networks.
critical to ensure cost efficiency in managing the
The participants of the network operating in silos
complexity of the modern supply chains. An
have their independent systems and processes which
organization’s ability to drive optimization at the
results in inefficiency and slows down the pace of
planning stage can result in a significant reduction in
information exchange among the stakeholders.
cycle time and inventory levels across the distribution
network. This has the dual benefit of reducing Through cloud and mobile computing, organizations
inventory costs and enhancing revenue through a can manage a larger pool of suppliers, transporters,
better customer experience. customers, and other third-party partners effectively
to build redundancy and resiliency in the network.
Advanced algorithms and programmatic optimization
Shared data architecture and storge framework will
solutions can enable exception-driven automation
help to maintain transparency and data integrity.
systems that will not only reduce cycle times but also
Reduced need for data cleaning and data availability
help in the reduction of manual planning. This will
issues will drive a faster data-driven decision-making
empower the resources to focus on other critical
process.
aspects of the business and provide scalability to the
operation. To summarize, creating an accessible
technology platform to facilitate real-time planning
An integrated system that enables the automatic flow
and optimization, and collaboration will help unlock
of information between planning and execution will
scalability, cost efficiency while building reliability,
provide multifold benefits in cost efficiency,
resiliency, responsiveness, and agility to the supply
scalability, and additional revenues.
chain network.
TruckNet Digital | 2021 5Whitepaper | Supply Chain Digitization: Key Considerations in 2021
TruckNet Digital
Website : www.trucknet.digital | Email : sales@trucknet.digital | Contact : 8068224810
Head Office: Koramangala, Bangalore, India
TruckNet helps enterprises realize the benefits of execution, improved customer service which helps
digitizing the logistics operations through its you with business expansion - as well as improved
technology-driven Supply chain & Logistics Solutions. vendor collaboration for preferential treatment.
The platform solution delivers Load Planning &
Optimization, Transportation Management, and We help our Customers meet the new expectation of
associated services to enable a lean, resilient, and the digital future - improved responsiveness to
collaborative Supply Chain Ecosystem for the changing customer demands and resilience in the
customers. face of disruptions.
TruckNet solution delivers a critical competitive
advantage through optimized shipping costs, reduced
inventory levels, reduced cycle-time for order
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