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Are we jumping into digital transformation of supply chains too soon?
Supply Chain teams of leading companies try to deploy the latest tools and technologies available in the market. They want to do it to stay ahead of the pack.
Digital transformation of supply chains is the buzzword these days. I see many companies rushing into it in an attempt to solve many of their persistent problems. The question is… Is it a well thought out decision?
Leaders of such a major initiative must answer the basic question… Why are we doing it?
When faced with this fundamental question, the answers are often not convincing enough. Visibility is cited as a reason, but visibility is only a means, not the end objective. Transparency is another reason, but that is also a means.
If we need to answer this basic question, we must first look at the current design of the supply chain to check if it meets the customer service objectives or not. In most cases that I have seen, the answer to better service lies in sharpening the design, before deciding where digital enablement will enhance the value further.
My suggestion is not to jump into digital transformation before having a thorough relook at the current supply chain design.
Would love to hear your thoughts and experience in this regard…