Companies have begun to understand the benefits of Digital Supply Chain (DSC) and progressively implement it to lower cost and increase revenue. Algorithms are the core of DSC and companies have cracked the code for success which is developing algorithms that forecast and manage the business.
The blockchain is a powerful technology and can solve multiple DSC problems, but companies don’t focus on assessing the value that blockchain provides and instead concentrate on proving that this technology works. The Digital Supply Chain Institute (DSCI) has created a blockchain fitness index for supply chain managers to find out where blockchain will be useful and the expected returns from the technology.
The progress toward a Digital Supply Chain is slower than expected, and companies would like faster adoption of the technology. The reason behind slow adoption is the inadequate skills of the workforce in the digital environment. Moreover, organizational silos prevent gathering data, generating algorithms and decision-making. The biggest issue for companies that are willing to implement Digital Supply Chain is finding that right talent. Data scientists are needed, but companies are not confident in employing and retaining them. Existing training programs are not dynamic enough to teach new skills to the employees. DSCI has developed a five-week training program to solve the talent shortage problem. The online training program is customized to accommodate specific company goals.
Digital Supply Chain can also benefit from big data and advanced analytics. Predictive analytics with demand planning which analyzes hundreds to thousands of internal as well as external demand influencing variables can also impact the Digital Supply Chain. These new technologies substantially improve demand forecast accuracy reducing error by 30 to 50 percent. Last year, companies made progress in implementing the Digital Supply Chain. However, the pace was slow, and companies want to move faster in this direction.