7 Benefits of Supply Chain Digital Transformation

January 4, 2023 - Lou Farrell

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Supply chains have had a rough start to the 2020s, with shortages and backlogs plaguing every industry on a global scale. Adding some new technology to the mix will help solve the crisis and get the economy back on track. Here are seven major benefits of the supply chain digital transformation that will remain relevant for years to come.

1. Increased Visibility

High-volume supply chains are prone to many errors, especially when they go overseas. Having complete visibility of our products from start to finish is crucial to maintaining their quality. 

Tracking devices with built-in AI and IoT can send status alerts across the world in real time to notify companies of any damage or disruptions. Identifying issues as they happen prevents bigger problems from arising farther down the chain.

2. Automated Processes

Processing shipments and deliveries can get messy with humans involved. Digital tools like order management software (OMS) make our transactions more accurate and time-efficient. Rather than manually sending out POs and invoices, the software takes care of these tasks for us. Shipments can go out and deliveries can come in more quickly.

3. Advanced Analytics

Gathering insights about a supply chain’s strengths and weaknesses has never been easier with advanced analytics tools and software solutions. Armed with these tools, managers can identify the specific parts of the chain that are costing them time and money. Supply chain management is all about informed decision making. More available data leads to better decisions and improved workflows.

4. Optimized Workflows

Speaking of workflows, a key part of the supply chain’s digital transformation has been wearable digital tools for the average employee. These devices track activity levels, vital signs and other indicators that an employee is/isn’t being productive. Warehouses, retail stores, construction sites and other jobs with many full-time employees especially benefit from these devices.

5. Reduced Costs

Cutting costs in the supply chain is more important than ever with ongoing inflation issues plaguing the economy. All of the aforementioned factors – visibility, automation, analytics and workflow optimization – help businesses save money and invest in other projects to grow their brands.

Some projections even estimate that digitizing the supply chain can save up to 50% and increase revenue by 10%. Every dollar counts in this economy, so even a one-percent decrease in costs is worth the investment.

6. Bolstered Security

With greater visibility and more data available, we have a stronger grasp on the security threats facing our supply chains. Data encryptions, ransomware attacks and other cyber threats will become more dangerous as the world becomes more tech-dependent, so we need to fight fire with fire. Combating cybersecurity threats with advanced digital security tools is the only way to keep up with supply chain digital transformation.

7. Faster Innovation

Lastly but perhaps most importantly, a digital supply chain leads to faster innovation. Integrating the latest technology forces us to adapt. We have to rethink the supply chain as a whole and find new practices to adjust to the fast-paced modern world. Abandoning traditional management tactics is always a challenge, but it’s an obstacle we must overcome to use these digital tools to their full potential.

Embrace the Digital Transformation

Don’t hold onto your old supply chain management guides and wait for the current economic struggles to blow over. The quickest way out of the storm is by embracing the supply chain’s digital transformation and adopting the latest technology. There’s always a learning curve, but making mistakes and learning from them has always been part of building a profitable business.

Revolutionized is reader-supported. When you buy through links on our site, we may earn an affiliate commision. Learn more here.


Lou Farrell

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