What are the biggest challenges in Supply Chain that can be addressed by digitalization?
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Extension of the question can be with Standardization-Optimization-Digitization-Automation.
In my humble opinion, VUCA can summarize the biggest challenges in Supply Chain.
Volatility, Uncertainty, Complexity, and Ambiguity are the biggest challenges bringing lack of visibility, transparency, control, resilience, hence risks for an organization. However, they can be respectively answered with Vision, Understanding, Clarity and Agility.
Standardization-Optimization-Digitization-Automation is accelerating processes' rates and enhancing processes' quality, making them less human-dependent. It enables better data control and governance, and leveraging insights as well as resiliency thanks to agility relatively to external disruptions.
Hence, one gains better:
- Vision on the past with history, and the present with better monitoring, and the future with more accurate forecast resilient to potential disruptions,
- Understanding with leveraged insights and decisions,
- Clarity as a consequence, and
- Agility (and resilience) relatively to internal and external potential disruptions.
To make a long story short:
- demand planning
- network design
- capacity modelling