Digital Supply Chain Management

Digital Supply Chain Management
A digital supply chain is similar to a typical supply chain, but the foundation is built on web-enabled
abilities. Many supply chains use a combination of digital technologies.
In other word, Digital supply chain management is really just supply chain management with an added
layer of digital technologies. These technologies include:
 Predictive analytics to optimize inventory allocation and forecast demand
 Automated replenishment solutions
 Robotics to speed up assembly or picking
 IoT sensors to gather real-time feedback from manufacturing equipment and vehicles
Advantages of Digital SCM:
Collaboration:
Digital supply chains enable collaboration among multiple internal and external systems and people.
This is one of the characteristics of what many refer to as a control tower. Collaboration creates
opportunities to reduce or eliminate the “data silo effect,” where information is housed in separate,
siloed information systems—or worse, individual spreadsheets. A unified, shared view of the supply
chain through a single portal—versus a web of forty-plus integration points—accelerates cross-
department and cross-trading partner visibility and collaboration, making agility and responsiveness an
integral part of the digital supply chain.
Automation:
An end-to-end digital platform creates efficiency, eliminates manual re-keying errors, improves data
accuracy and increases supply chain speed by automating many labor-intensive, manual processes and
facilitating decision-making at multiple stages in the lifecycle. For example, side-by-side initial costing is
automated, and alerts are automatically generated when purchase orders (POs) are in danger of delays
or complications. Similarly, the task of identifying and qualifying products eligible for free trade
programs is automated. Automation also determines the most appropriate shipping mode, carrier and
schedule while taking into consideration time, speed, priority and other elements. As a general rule,
digital supply chain workflows rely heavily on automated processes.
Data Analytics:
Global supply chains generate enormous amounts of data. By creating a digital version of the end-to-end
supply chain, including historical records, supplier performance records and total landed cost scenarios,
today’s analytics can now spot problem patterns, identify bottlenecks and pinpoint savings and cost-
reduction opportunities. Analytics can also watch for imminent and future risks and recommend
proactive solutions. Analytics enable real-time transactional reporting and performance evaluations for
continuous improvement across the supply chain.
Holistic Approach
Companies that are still juggling massive spreadsheets, making phone calls and sending emails to try to
get to the data they need are missing the boat. When you add the sourcing and logistics data gap to the
equation, the situation becomes even more complicated. More effective collaboration within internal
teams—and among brands, their suppliers and logistics providers—is critical to get products to market
faster and respond quickly to consumer demand and economic shifts while keeping costs down.
When sourcing and logistics both have access to real-time data from credible sources accessed via a
digital model of the supply chain, supply chain leaders can effectively deal with exceptions and spend
their time working on more important things than searching through spreadsheets for information. A
digital twin of the physical world makes it possible to manipulate, process and analyze the digital version
with computer software. This unlocks tremendous value and creates a flexible and adaptable operating
platform. Once in place, the digitized global supply chain requires fewer human resources and less labor
due to the omission of numerous manual tasks. This in turn reduces the overall time and cost involved in
running the supply chain. Another benefit is a more predictable and reliable supply chain that allows
shippers to reduce inventory levels and safety stock—a cost-saving move that simply can’t be
overlooked in today’s competitive global business environment.
To do it right, companies are taking a holistic, integrated approach. This wide-ranging approach to
establishing a digital supply chain encompasses product development, sourcing optimization, foreign
supplier management, product and factory risk, quality assurance, and the management of export,
global transportation, duty, import and logistics processes.
With the recent acquisition of Amber Road, E2open has bridged the gap between two typically disparate
teams: sourcing and logistics. The results is a more connected, intelligent supply chain that helps
companies increase efficiency, reduces risk and enables supply chain agility. Try E2open’s Supply Chain
Application today! E2open is changing everything. Demand. Supply. Delivered.

Digital Supply Chain Management

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Digital Supply Chain Management

 Predictive analytics to optimize inventory allocation and forecast demand

 Automated replenishment solutions

 Robotics to speed up assembly or picking

Advantages of Digital SCM:

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