Supply chain and digitisation problem statement:
The graph below shows the leading supply chain and digitisation challenges based on the 2022 MHI Annual Industry Report data.
Industry Focus on digitisation:
In a world where localised, regional, and global disruptions seem ever more likely, taking proactive steps to improve supply chain resiliency is necessary. Short-term actions such as holding more safety stock can help a company significantly reduce the risks of exposure to disruption. Likewise, longer-term efforts like relationship building or increased geographic supply base diversification can help it recover and ultimately thrive post-disruption.
According to Cap Gemini Consulting and GT Nexus Study:
Over 75% of respondents said that it was important or very important for their respective organisations to undergo a Digital Transformation of their supply chains (over 50% stated that it was very important). This finding shows that Digital Transformation in the context of global supply chains is paramount, and its importance has already become widely accepted.
Another eye-opener was the executives’ comments on satisfaction levels relating to their organisations’ Digital Supply Chain Transformation efforts and progress. 33% of respondents were dissatisfied – in contrast, only 5% reported being very satisfied.
The Role of Mobility in Digital Supply Chain:
Wearable & Mobile to reach 75% in five years. 42% of organisations are implementing measures to manage and reduce costs among their strategies to protect from global disruptions.
The number of warehouse processes and teams working together to bring goods through the supply chain is monumental. As a result, things can easily go wrong. Hence, to avoid errors, efficient organisation and procedures are essential.
With warehouse mobility, logistics operations can be managed more effectively, allowing managers to stay on the move and keep things running smoothly without being tied to specific locations by plugged-in devices. In addition, warehouse mobility improves communication across the whole supply chain – enabling the streamlining of processes and improving worker productivity.
Detached from desks and monitors, managers can track the status of goods more efficiently. As they move around the warehouse, they can monitor the performance of employees, the warehouse or even the entire supply chain from their handheld devices.
These mobile systems are more than just incredibly affordable. Down the line, they can pay for themselves – due to the improved business processes they enable. This includes human error reduction (up to 99% accuracy). For instance, barcode scanning (vs manual stock-taking) improves accuracy by removing paper-based systems. In addition, the data stored in mobile devices can lead to better asset utilisation – extending asset lifecycle and reducing breakage and losses.
The same study reveals that 22% of respondents “are utilising wearables and mobile technologies” and that the adoption rate is expected to reach 45% in the next two to three years. Wearable and mobile technology, according to 44% of respondents, “has the potential to either disrupt the sector or generate competitive advantage.”
For past, present, and future usage, please take a look athe graph below.
- Compatibility with the existing ERP solution and available integration options – in this case, mobility is one of the most important considerations.
- Design framework – starting with a poor understanding of business outcomes will lead to an organisational design unfit for the organisation’s needs.
- Final design must be flexible enough to adapt to environmental changes.
- Well-equipped supplier base – selecting the right business partners with the right mix of capabilities is essential. If your ecosystem is not in step with your proposed strategy, re-evaluate your partners or invest in upgrading their capabilities.
- Not all available technologies suit all organisations – the emphasis should be placed on making the company leaner. A pilot phase, where possible, can help confirm the proposed technology’s compatibility and effectiveness.
- Overcoming resistance to change – focus on benefits to the organisation but always be candid about potential risks.
- Talent shortages – supply chain organisations on the verge of technological evolution often discover that talent scarcity significantly hinders success. Review the skill sets required for future needs and invest in building capabilities across the ecosystem.
- Readiness for external changes (raw material prices, regulations, the economy, etc.), which can disrupt even the best-laid plans. Adopt an agile approach to redesign by considering multiple deployment sprints.
- Investment optimisation – including human resources. All decisions must be based on return on investment, directly linked to business benefits and their ultimate impact on company performance and growth.
Finally, when innovating, organisations must accept that not every initiative will succeed. Therefore, each organisation must stay true to itself and stop wrong initiatives as soon as they are proven undeployable or not beneficial. When projects don’t go according to plan, the key is to learn from failures fast and not dwell on the past. Moving on quickly helps businesses reach their goals faster.
On Device Solution has successfully delivered the much-needed myWarehouse application to multiple clients – helping them meet their digitisation milestones. With our vast expertise in warehouse management and mobility solutions, we can assist your enterprise in reaching its digitisation targets cost-effectively.
Don’t hesitate to contact us at email@example.com to discuss your requirements and request a demo.