Supply chain management: trends in the digital age

In 2020, many companies experienced the fragility of their supply chain, leaving them vulnerable to radical changes in business activities due to the pandemic.. Today, in the midst of digital transformation and the possibility of conducting business regardless of geographical location, many operations have been expanded to global levels. Because of this, analyze the efficiency of supply chain management has increasingly become a priority.

Faced with this scenario, there is a need to realign the different areas within a company, driving the development of new supply chain management strategies and providing even greater value to consumers.

In fact, a Gartner research Identified that develop supply chain management resilient and agile is a priority for nearly all organizations, with around 90% planning investments to make their supply chain more efficient in the coming years.

It is then necessary to ask: What can you do to make your supply chain management more profitable and ready for the future?

But first: what is a supply chain?

“Supply chain” is a term used to describe the path that a product takes from its initial production stage to reaching the hands of the final consumer.

Think of it as a series of interconnected steps involving different agents, such as suppliers, manufacturers, distributors, and retailers. Each step plays an important role in moving the product along the chain.

For example, imagine a sneaker being manufactured and sold in a store. In short, the supply chain would begin with the suppliers of raw materials, then it would go to the manufacturer, then it would be sent to a distribution center and, finally, to the retailers, who would receive the product and place it for sale to consumers.

Along this chain, there is also the flow of information, such as orders, inventories, and sales data, which allows all parties involved to coordinate their activities and make decisions based on market needs.

In the digital world, on the other hand, this process can be more agile and faster. When considering the supply chain of a software, for example, we have its creation and development, quality control, online distribution, and customer support. In addition, software updates, which can be released incrementally over time and bring improvements and new features to users.

How is supply chain management carried out?

Supply chain management, or supply chain management, refers to the coordination and administration of all activities involved in the flow of products, information, and services along the supply chain.

Supply chain management plays a fundamental role in the competitiveness of companies, allowing for better coordination, collaboration, and optimization of resources along the entire chain.

This is important to ensure the proper flow of processes and to ensure that all those involved work collaboratively, seeking continuous improvement and achieving competitive advantages in the market.

Some steps that encompass good supply chain management are:

• planning and data flow;
• logistical routines;
• production of goods;
• costs;
• corporate asset management;
• distribution channels;
• delivery time;
• product lifecycle management.

With the acceleration of industry 5.0 and market competitiveness, supply chain management brings with it new challenges and risks. With that, more than 50% of leaders expect the complexity of supply chain management to increase over the next five years, in most aspects of the operating model.

In this context, continuous optimization, strategic planning, and the implementation of intelligent digital practices become essential to ensure the success of this management.

What are the advantages of good supply chain management?

Good supply chain management can bring several significant advantages to companies. They are:

Operational efficiency

Effective supply chain management optimizes the flow of materials, information, and resources along the entire chain. This results in faster processes, reduced waste, shorter cycle time, and lower total operating cost.

Cost reduction

Optimizing the supply chain can lead to a significant reduction in operating costs. By improving efficiency, reducing waste, minimizing unnecessary inventories, and optimizing logistics, companies can achieve economies of scale and benefits from negotiating with suppliers, resulting in lower production and distribution costs.

Better customer service

Effective supply chain management can help improve customer service. By having better visibility and control over supply and distribution processes, companies can ensure adequate product availability, timely delivery, order tracking, and quick response to customer demands and requests.

Improvement in quality

A well-managed supply chain allows for better quality control throughout the entire process, from selecting reliable suppliers to adopting quality control practices at every stage. This helps ensure that products meet established quality standards, reducing the occurrence of defective or non-compliant products.

Greater innovation and agility

Effective management allows for closer collaboration between suppliers, partners, and customers. This can stimulate joint innovation, the sharing of information, and the exchange of ideas, resulting in more creative and adaptable solutions. In addition, an agile supply chain allows companies to respond quickly to changes in the market, such as fluctuations in demand or interruptions in supply.

Competitive advantage

By optimizing processes, reducing costs, improving quality, and better serving customers, companies can stand out in the market and gain a stronger position compared to competitors.

5 digital practices to optimize supply chain management

Currently, companies are focusing less efforts solely on cost reduction and are prioritizing adaptability, to velocity And the risk mitigation within the supply chain. This is due to the fact that they are adopting more flexible supply and distribution strategies and learning to engage employees and customers in innovative ways, often through digital means.

In this scenario, a Six Degrees survey identified the use of artificial intelligence, data science management, and automation as the three main technological changes envisaged for supply chain management.

Here, we will explore these and other digital practices that can bring numerous benefits to supply chain management, from improved operational efficiency to improved customer satisfaction.

However, when considering the adoption of these technologies, it is important to also look at the specific needs of the company and the available technological infrastructure, in addition to ensuring the adequate capacity of the team to implement and use these practices effectively.

Data and documents in one place

Information scattered across multiple spreadsheets, documents, emails, or even on paper can lead to compliance risks and a lot of rework. Therefore, an efficient alternative is to use a platform that centralizes all team materials, communications, and transactions.

Clicksign's solutions are a good example of how an electronic signature and document management platform can help. Clicksign allows you to send documents to multiple signers simultaneously, track the status of the signatures in real time, and Store documents in the cloud in a secure manner.

With this, it is possible to optimize supply chain management, ensuring efficiency, reducing dependence on paper and delays in the workflow.

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Data analysis and use of big data

By collecting and analyzing large volumes of data, the company can identify patterns, trends, and opportunities for improvement. This includes analyzing demand, supply chain performance, customer, and supplier data.

The information obtained may provide insights valuable for supply chain management, optimizing demand forecasting, improving planning accuracy, and identifying areas of inefficiency.

In this scenario, it's also worth monitoring key performance metrics, such as cycle time, order fulfillment rate, inventory levels, and operating costs. Based on this information, the company can identify bottlenecks and opportunities for improvement, increasing the efficiency and competitiveness of the supply chain.

Review and update of processes

Based on performance data analysis, you'll find that staying with the same processes for too long is rarely a viable option. After all, costs fluctuate, business objectives change, new suppliers appear, and the market changes.

In this sense, having a platform that facilitates the reformulation of flows is of great value for supply chain management. This includes the ability to update prices and payment terms, establish new partnerships and suppliers, and other necessary adjustments to keep processes aligned.

Agile processes with automation and technology integration

Warehouse Management Systems (WMS), enterprise resource planning (ERP) systems, tracking and monitoring systems, and other digital tools can improve the visibility, efficiency, and accuracy of operations along the supply chain. The use of these technologies allows a continuous flow of information and the automation of processes, reducing time-consuming and error-prone manual tasks.

Technologies such as Integration APIs, for example, allow companies to obtain a more complete and updated view of supply chain operations, connecting individuals from different stages of the chain. They facilitate inventory tracking, demand forecasting, logistics coordination, shipment monitoring, and other crucial activities to ensure the efficiency and agility of supply chain management.

Emerging technologies

The use of emerging technologies, such as the Internet of Things (IoT), artificial intelligence (AI) and blockchain, can also bring significant benefits to supply chain management.

IoT can be used to track and monitor assets in real time, AI can help forecast demand and optimize delivery routes, and blockchain can provide greater transparency and security in transactions between supply chain partners.

How can Clicksign optimize supply chain management?

As we have seen, knowing how to efficiently implement supply chain management brings a series of benefits to the company, bringing more agility and competitiveness to the business, in addition to reducing the costs involved. These advantages can be greatly enhanced with the adoption of technological solutions that optimize the management of the organization's flow of receipts and deliveries.

A Electronic signature API by Clicksign, for example, allows companies to easily incorporate electronic signature features into their existing systems and workflows. Thus, it is possible to accelerate the document signing cycle, reducing the time spent by physical transportation and dependence on paper. This results in a more agile supply chain, with more efficient processes and greater capacity to respond to market demands.

In addition, it is worth remembering that the platform offers features for manage documents in one place, making it easier to store, organize, send, subscribe, and monitor.

Count on Clicksign solutions to make your business even more dynamic and help your company face the challenges of supply chain management in the digital age!

Try for free our electronic signature solutions and change your supply chain management process.