Using Digital Transformation to Prepare Your Supply Chain for Disruption

Reduced complexity and uncertainty are critical components of effective supply chain management. We show you how shippers can use digital transformation to plan for ongoing capacity issues and keep their plans up to date through appropriate analysis, constructive feedback, and targeted adjustments.

As we have all learned over the last two years, a disruption in the supply chain that occurs elsewhere in the world can have a significant impact on your consumers, your organization, and your supply chain. Natural disasters, global health pandemics, political volatility, economic upheaval, cyber and terrorist attacks, supplier threats, and rapid shifts in customer preferences and demand can all disrupt supply chains. Supply chain disruption is no longer a question of “if” it will happen, but rather of “when” it will happen, because it is both ubiquitous and unexpected.
You must respond to the following question: Will we be able to prevent the next disruption in the global supply chain?

Mapping your supply chain

When the supply chain is mapped and visualized, the organization can gain a better understanding of the critical upstream operations that contribute to the creation of value. At its core, it entails gathering all of the information readily available within the organization and preparing it for the materiality assessment that will follow. All of the steps in the supply chain, including those that aren’t direct suppliers, will be displayed sequentially and supplemented with information about the activities of those phases and the companies that supply them.

Identifying significant impacts on sustainability and deciding where to intervene

Based on the analysis and determination of sustainability elements and impacts, the company can analyze and prioritize the risks to the environment and people. The perspectives of stakeholders are critical for gathering data on negative outcomes and risk mitigation. Taking a risk-based approach emphasizes the importance of approaching sustainable supply chain management from a precautionary standpoint, and that the organization should strive to act preventatively.

Internal reorganization and process re-engineering

Materiality analysis and inventories are used within the corporation to establish or modify new and existing business processes. It is also necessary to lay the organizational foundations for long-term supply chain management, which includes providing the necessary financial, human, and technical resources.

Most important piece of advice: Create your company’s framework plan well in advance

Call it what you want: tactics, approach, blueprint, or strategic plan. To make a plan, forecast and simplify your operations as much as possible. Then, as you implement your plan, look for successful, repeatable parts that you can expand on to make changes. As a result, when your supply chain becomes out of whack again, you can continue to improve your adaptability and response time.

Forecasting, in particular, is critical to ensuring the success of shippers. You must devote time to developing a playbook for what will occur in your network in the event of a disruption or seasonal event. Before you do anything, make sure you understand your company’s and supply chain’s unique seasonality, surges, and holiday schedule. Examine these as frequently as possible, and make changes to your plan based on the data and predictive analytics that are appropriate for you.

ProConnect Integrated Logistics – Your Warehousing & Freight Forwarding Partner

A third-party logistics firm can help shippers mitigate a variety of risks throughout the supply chain by outsourcing certain logistics functions. By partnering with a 3PL, a shipper can free up time to concentrate on his or her core competencies without suffering from the ever-shifting logistics landscape.

If you are looking for a partner to take care of all your logistics hassles, talk to us.

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