Why Digital Supply Chains are Gaining Popularity Amid COVID-19

A well-architected supply chain model is supported by agility, sustainability, predictability and traceability.

Ipopba Robotics Controls

Technology has penetrated all aspects of every industry, thus introducing the new era of Industry 4.0. Digital transformation, on the other hand, is at the heart of forming the fourth industrial revolution. The technologies have altered various traditional ways of working including the process of manufacturing and supply chain management.

With almost everything entering a digital phase, innovations and developments have even involved the supply chain. This means the transfer of digital media that includes electronic documents, audio, video, and other such information, from one side to another through electronic ways and numerous stages of transmission. The digital supply chain works in the same manner as the physical supply chain in the delivery of physical properties. The digital media progress from numerous stages of processing to assist the customer with the best experience.

A well-architected supply chain model is supported by agility, sustainability, predictability and traceability. These four pillars are known as terrifying enablers for which the companies are strivings to renovate infrastructure. These factors can enhance data visibility, which can lead to improving transparency across the complete supply and value chain of the company. Moreover, transparency brings numerous benefits including the capacity to attain intermediate and long term sustainability goals.

Increased penetration of the internet provides the availability of more information results in increased efficiency and lower costs for the digital supply chain. Digitalization, therefore, completely eradicated manual interventions and unnecessary processes with enhanced accuracy. This helps in increasing the improvement in performance by offering the employees more time for other strategic duties. Moreover, the digital supply chain also offers a platform for direct collaboration between supplier and buyer.

Digitalization in the supply chain enhanced the procedure as it has fastened the decision making based on accurate depiction of prices, usage and past performance. Furthermore, it eliminates extra efforts such as duplication which leads to submit similar data by several departments for various purposes. It also minimizes downtime as machine learning and predictive maintenance help with part failure. And last but not least, better use of employee time with less inventory cost.

Owing to the advantages and rise in penetration of technologies, several companies have been investing in the digital supply chain. However, the unsolicited arrival of the pandemic has interrupted the track for a limited period. The novel coronavirus outbreak has wreaked havoc in almost every industry, causing significant changes to the companies.

Digital supply chain market in the era of COVID-19

Followed by lockdown, several industries have remained closed during the initial phases of the coronavirus outbreak. However, inevitably, with a constant state of flux, all industries have started operations by adapting different strategies to evolve and manage the rapidly changing behavior of their customers. 

Digital supply chains are getting widely adopted amid the Coronavirus disease (COVID-19) pandemic, as global commerce and businesses have prioritized the safety of their employee. Awareness and management regarding social distancing have increased the popularity of online tools and services. The companies are also offering free assistance in order to highlight their services amid the pandemic. 

Due to the crisis, the need to digitize the supply chain has also been increased. As every business has been through a certain digital upgrade. On the other hand, the pandemic has adversely affected the physical supply chain, which surged the switch towards the digital supply chain. Moreover, owing to the precautionary measure and contactless procedures, it is anticipated to witness a significant rise in the adoption of the digital supply chain amid COVID-19.

The demand for the digital supply chain is anticipated to rise during and post-pandemic. Though, the market players are still working to advance and strengthen security on the digital supply chain. However, the factor that the digital supply chain offers time and cost-effectiveness would enhance its demand. On the other hand, the increasing penetration of digital media devices is expected to increase the investments for the digital supply chain. Moreover, the digitalization in the supply chain would also lead to enhance service quality over the years. The global digital supply chain market is projected to grow significantly, according to a report by Allied Market Research.

The key market players are focusing to advance planning processes and ensure integrated operations between customers and suppliers. Industry 4.0 has insisted the players change the traditional ways of working. On the other hand, the massive disruptions amid the crisis have urged the companies to rethink the strategy of the supply chain they provide. Moreover, the Internet of Things (IoT) is highly increasing, and the e-commerce market would also witness elevated growth in the coming years. These factors would assuredly encourage to escalate the growth of digitalizing the global chain in the near future.