In the real world, customer demands change and supply disruptions happen. Consumers and collaborative business partners have new expectations. Is your supply chain agile enough to respond?
As technology expands and the Internet of Things becomes increasingly prevalent, a digitized supply chain strategy is moving into the core of business operations. Today’s high-tech companies must adapt – speed and accuracy are crucial, and collaboration is more important than ever. The right digital tools are the key to developing an extended, fast supply chain process. The evolution of the extended supply chain can be seen with McCormack and Kasper’s study on statistical extended supply chains.
Ultimately, however, everything comes down to the efficient use of data in decision making and communication, improving overall business performance, and opening a whole new world of opportunities and competitive differentiation.
The changing horizon of supply chains in technology
Supply chain management now extends further than ever before. Until recently, the task for supply chains was simple: Companies developed ideas, produced goods, and shipped them to distribution points, with cost efficiency as one of the most prevalent factors. As the supply chain evolves into extended supply chain management, however, companies must plan beyond these simple steps.
The Digitalist summarizes these new market conditions as collaborative, customer-centric, and individualized. New products need to hit markets much faster, and customers expect premium service and collaboration. Increasingly, the supply chain must meet rapidly changing consumer demands and respond accordingly. Management can now be conducted by analysis of incoming data or by exception, as discussed in a presentation by Petra Diessner. Resilience and responsiveness have clearly become differentiators in the cutthroat high-tech market. To keep up, high-tech companies must change their method of conducting business.
What is the extended supply chain?
The extended supply chain refers to widening the scope of supply chain planning and execution, not only across internal organizations, but beyond a company’s boundaries. High-tech companies must involve several tiers of suppliers, manufacturers, distributors, and customers. Some businesses also study the popularity and dynamics of a product directly, such as through mining social media data. To lead the competition, modern businesses must orchestrate the extended supply chain to keep up with consumer demands, as consumers now look for fully integrated service experiences.
What makes the supply chain work in extended form?
There are several key factors to consider when updating your supply chain model. The first, access to information, is essential to managing digitized extended supply chains and unleashes benefits that can help your company grow beyond traditional models. All companies gather information, but companies that use this information effectively will excel where others do not.
World Market Forum discusses this in its report on extended supply chains. Digitizing the supply chain process can help manage even an extended, complex network and provide key access to critical information. The success of digitization relies on gathering accurate, pertinent information in a format that can be readily applied and used. While speed is important, it is not enough. The information itself must be applicable to the company’s needs and it must provide data that allows companies to make more informed decisions about product growth, marketing, and supply chain distribution.
Real-time information access is a primary benefit of digitized supply chains. Market trends become instantly visible with real-time data and cloud-based analytics, as Marcus Schunter notes in this analysis. This insight allows companies to plan for new products and platform development as the market shifts. Eliminating the need to wait months to access and analyze data is critical for the high-speed technology market and also allows for assessment of critical situations. Resolving problems as they occur is more efficient than post-mortem analysis and allows companies to act rather than react. In extending your supply chain, look for technological advancements that allow you to gather data and analyze it in real time.
Consolidation of digital information is another major benefit to the digitized supply chain. Localized digital information can be gathered and analyzed to form executable action plans. Data becomes part of the planning and problem-solving cycle, improving overall communication and allowing for fuller, more meaningful problem-solving and planning. With digitization, speed is a factor, but the relevancy and application of information separates successful companies from the pack. For companies looking to extend their supply chain, this is a key element when searching analysis tools and platforms.
Is your high-tech organization ready to meet the challenges of a complex market and navigate the digital economy?
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