Pros of Digital Supply Chain in Manufacturing

Pros of Digital Supply Chain in Manufacturing

Manufacturing Technology Insights | Monday, March 29, 2021

Manufacturers are adopting digital supply chain strategies to increase productivity and create a customer-centric environment. 

FREMONT, CA: Using data analytics from existing data sets, the digital supply chain in manufacturing can assist manufacturers in achieving supply chain efficiency. They can collect data from sensors and connected assets and use AI to extract insights from the machine data to perform prescriptive analysis. As a result, operational industrial leaders may have access to highly critical real-time data that they can use to improve performance.

One of the best characteristics of the digital supply chain in manufacturing is the capability to be on-demand because a company can quickly move from design to manufacturing in just a few easy and rapid steps.

Finding a contract manufacturer who can integrate on-demand capabilities into a company's smart supply chain can build a supply chain driven by customer demand rather than relying on the supplier's lead time. It has the potential to improve manufacturing operational efficiencies drastically.

How do Digital Suppliers Work?

When selecting contract manufacturers and suppliers, it is critical to choose those who can provide a digitally agile response through a fully digitized process. Speed is a crucial factor as it can be maintained by using digital technology to automate several planning steps required for manufacturing specific parts.

The Drivers of a Digital Supply Chain in Manufacturing 

Optimize the Core Supply Chain Process

Planning, procurement, manufacturing, logistics, and return are the five primary processes of most supply chains. The first and most crucial step is to understand the value of data and establish governance processes to ensure its integrity. They must improve data capture, particularly where having that data can make a difference. Advanced supply chain optimization software can then be used to boost productivity in this area. It allows manufacturers to make the most of what they already have to maintain their legacy business while also laying the groundwork.

Ensure Adequate Supply Chain Business Process Orientation

The next significant driver helps manufacturers in moving beyond functional optimization. It requires them to emphasize supply chain management as an end-to-end business process as they give on new product development. A transformation in the entire organizational structure is necessary to overlay a business process perspective across the classic functional business structures.

Explore New Business Models

As most manufacturers are at a crossroads in the industrial revolution, the economic benefits of consumption-driven growth fall behind compared to environmental and social costs. This requires restructuring the existing business models and a significant transformation from product provision towards service provision, supported by a design of the supply chain.

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