The world is in an ever-evolving state of digital transformation which has improved the performance of businesses and global supply chains. What is “digital transformation”? It can be described as the “application of technology to view, digitize, and analyze data in an accurate and quick manner to improve supply chain performance”. Companies are now using their technology to create a low risk, efficient, and resilient supply chain. It now may become clear to leaders during COVID-19 that digital transformation is more important than ever, and adoption must become priority.

The ability to access and process data as fast as possible has never been so sought after. As reported by MIT “Transforming digitally the supply chain can lead to a 50% reduction in process costs and increase revenue by 20%. Our work explores how inter-organization collaboration challenges change during digital transformations.”

If you have not adopted these improvements, here are some benefits that show how a digital transformation can build a great supply chain.

Make decisions faster

With digital transformation, new tools have become available that offer increased visibility, more transparency, and the ability to make real-time decisions and prevent future disruption. As reported by ARC Advisory Group “customers have become more demanding. They have full visibility across the supply chain, and now they are demanding sustainability too. Customers want to buy products from companies which manufacture ethically sourced and delivered products. Meeting these customer demands in a global supply chain, where you’re dealing with multiple suppliers, partners, and contract manufacturers, increases the complexity.” Be sure to research the RIGHT kind of visibility tool for your operations that gives you immediate access to information required which in return, can massively increase the performance  of your supply chain.

Communicate more effectively

Having the ability for your team to communicate flawlessly from any location at any time is not just something nice to have but rather is essential, especially during the COVID-19 crisis. With everyone working there needs to be a better way to communicate so the business can continue to function while having limited face to face interaction. Automation, messaging platforms, and project management tools allow for easier collaboration between employees and customers.

Be more efficient, save time and money

Real-time visibility and transparency will help improve collaboration by decreasing the chance of errors when sharing data. As reported by Freight Waves “physical document management is responsible for 15% of total logistics costs, so any improvement that eliminates the costs of managing physical documents will effectively pay for itself.” In addition, having visibility can streamline physical processes to create less dead time. For example: a warehouse expects an incoming shipment at 10am. It is 9:45am and the forklift is at the back of the warehouse and it takes 15 minutes to get to front to pick up the delivery. The forklift operator checks his visibility tool and sees the status has been updated, and the shipment is still an hour out, so now the forklift does not need to start making his way to the front for another 45 minutes and can continue with other work. End to end visibility and transparency for everyone involved will provide for the best results.

Manage by exception

A fully digitized supply chain allows leaders to manage on a case to case basis rather than using generalizations and making assumptions. Automation technology is creating a less interactive human environment, and therefore leaders rely on accurate data more than ever. The key is to quickly gather insights and devise solutions. More and more businesses are focusing their efforts on total supply chain visibility when attempting to increase the strength and resilience of their supply chain.


MVP Logistics is your 3PL logistics partner for supply chain project management, logistics, warehousing and fulfillment, LTL, and other supply chain needs. Our Minneapolis, Houston, and Los Angeles area warehouses provides local, national, and international shipping services. Find your solution today.

Leave a Reply

Your email address will not be published. Required fields are marked *