7 lessons learned from successful supply chain digitalisation
If an organisation wants to remain competitive, supply chain digitalisation has become a pressing need in the modern and rapidly changing business environment. This article crystallises key insights and best practices from our successful implementations across various industries.
1. Defining clear scope and goals
Setting clear, measurable goals is the foundation for a successful digital transformation. This mean attempting to achieve some concrete outcomes, such as “improving forecast accuracy”, “reducing lead times”, or “enhancing supply chain visibility”. Clear objectives help align all stakeholders and provide benchmarks for evaluating the impact of the digital initiatives.
2. Holistic process redesign
Probably the most important lesson learned about successful digitalization is that it does not consist of laying new technologies on top of existing processes. It must start with processes, not technology. It is here where many organizations fall into the trap of adopting the latest tools without knowing what their business objectives are. Indeed, best practices underline a radical rethinking of supply chain operations:
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The full assessment of current supply chain processes and their alignment with the overall business strategy.
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Redesigning the processes by trying to tend towards the best practices, but also by relying on and having this challenged by internal teams to build a concrete and realistic model.
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Identification of the best tools capable of achieving the designed processes.
3. Assembling a cross-functional team
Forming a cross-functional team is essential for successful implementation. Depending on the context and objective, you should include representatives from all relevant departments, such as production planning, supply chain, IT, and finance, to ensure all perspectives are considered. This team approach facilitates better planning, smoother implementation, and more comprehensive solutions.
4. Ensuring data integrity and quality
Data quality and governance are typically the most significant challenges in any digital transformation. This may include:
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Building a strong data strategy around the collection, storage, and analysis.
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Strong data governance to give integrity and security to data.
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Investment in data cleansing and enrichment for better quality of the existing data.
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Narrowing down on the creation of a single source of truth for the supply chain data.
5. Phased implementation with quick wins
Although the vision may be ambitious, in most cases, successful digitalization could be achieved via some well-planned incremental steps:
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Start with pilot projects that show tangible value quickly.
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From the early successes, build up the momentum to secure ongoing support.
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Scale the pilots across the organisation, adapting it as needed.
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Continuously measure and communicate the impact of digital initiatives.
6. Investing in training and change management
Effective change management is crucial for user adoption. This is clearly one of the elements to which you must pay the greatest attention. Even with the best processes and tools, if the Change Management aspect is not carried out in the right way, the transformation is doomed to failure. Here are some advice to tackle it:
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Build an operational model with the support of operational staff by including them in the first phases of the project. This will, on the one hand, guarantee the feasibility of the model built and avoid any risk of resistance to change.
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Implement robust change management strategies to support the transition to new processes. This includes tools to identify and track key changes, but also comprehensive training programmes to equip employees with the necessary skills and knowledge.
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Strong sponsorship from senior leadership throughout the project is crucial to drive commitment and support for the process redesign.
7. Continuous improvement
Digital transformation is never "complete." The most successful organizations view it as a journey, building mechanisms to continuously monitor and improve their digital initiatives while remaining attuned to the shifting technological, customer, and market contexts and cultivating cultures of adaptability and resilience to keep riding the change.
Conclusion
Digitalizing the supply chain is an ongoing journey that requires flexibility and a willingness to change. As supply chains get more complex, the companies that keep adapting and innovating will succeed the most. While the path can be challenging, having a clear strategy and focusing on constant improvement can lead to great efficiency and competitive advantage.
By staying open to new ideas and changes, businesses can not only keep up with the times but also use these changes to move ahead in the market.
