Supply chain digitization: everything you need to know to get ahead

by | Sep 4, 2024 | Order Fulfillment, Order Management, Suppliers

Many of today’s customers run lean operations to boost operational and cost efficiency. Though the priorities may look different depending on the industry, one way your customers are achieving leaner operations is by adopting automation in every corner of their supply chain process and leveraging this technology to improve their bottom line.

From upgrading their systems to automating manual processes, your customers are digitizing their supply chain. Why not join them and start optimizing yours as well?

What is supply chain digitization?

Supply chain digitization is the process of implementing technologies into different aspects of the supply chain. This could be via automation, data analysis, AI or other implemented technology, and it can serve varying purposes in boosting supply chain efficiency. Ultimately, the goal of supply chain digitization is to create a more agile and customer-centric supply chain that enhances accuracy and minimizes the need for human intervention.

For suppliers, supply chain digitization could start with adopting an EDI solution that simplifies the invoice process and ensures data accuracy and timeliness.

Why should I care about supply chain digitization?

In a 2024 survey conducted by SPS Commerce, suppliers identified significant difficulty in responding to market changes and emerging opportunities. In the same survey, 73% of the respondents noted integrating and adopting new technology as a challenge that was at least moderately impactful to their organizations’ resilience. Adopting new technology (i.e., supply chain digitization) could be the solution to easily overcome many supply chain disruptions.

Another factor to consider is one that’s a little less obvious: talent retention. Supply chain digitization automates previously menial tasks, enabling employees to do fewer time-consuming tasks and instead focus on more valuable work. When employees have the time to do more meaningful work, they’re more likely to stay happy in their positions longer.

What are the benefits of supply chain digitization?

We won’t mince words: If you’re a supplier focused on growth and want to get more done while spending less money, you should care about supply chain digitization. These are just a few of the benefits:

  1. Improved efficiency: With streamlined operations, newly automated tasks and fewer errors, your business can move faster and more accurately, leading to increased sales and happier customers.
  2. Cost savings: An automated supply chain can help optimize inventory, reduce inaccuracies and result in significant cost savings.
  3. Enhanced visibility: Better visibility into processes and analytics allows suppliers to monitor every stage of the process, helping build trust with partners and customers.
  4. Better disruption preparedness: When supply chain disruptions happen, a digitized business can be better prepared with faster tools to bounce back quickly.
  5. Scalability: A digital solution can scale with your business, automatically meeting new business needs as your company grows.

3 ways to (easily) digitize your supply chain

While supply chain digitization sounds like a big process, it’s actually pretty simple! If you’re not ready to adopt a totally new solution, your business can make small but meaningful enhancements to your existing processes to boost efficiency and accuracy. The first changes don’t have to be huge, but you can remain on the lookout for innovations in your process and stay up to date on the benefits that automation technology can bring to your company.

Upgrade your existing system or invest in a new one

We get it—adopting and integrating new technology can be complicated, time-consuming and scary. But little changes can make a massive difference!

You may not be ready for an entirely new system yet, but that doesn’t mean you can’t optimize your existing ERP, CRM or OMS. Newer, updated versions of your existing systems likely include more recent technology like AI or automation, easily alleviating your employees’ heavy lift of daily manual tasks.

Another benefit you may not expect is having your systems connected. Supply chain digitization can be as simple as a fully integrated and connected system. Instead of doing duplicate work, you can sit back and watch your technology stack do the work for you as your OMS, shipping partner, accounting solution and others are all in one place.

However, if you’re currently evaluating your existing ERP system and in the market for a new back-end system or looking for a better, more cost-effective document exchange process, it’s a great opportunity to adopt something totally new.

Automate manual processes

Do you know how much time you and your employees spend each day entering data from invoices and shipping notifications into your system, sometimes doing double the work due to isolated solutions working separately?

One process you can easily digitize is your document exchange. An EDI solution, like SPS Commerce Fulfillment, will enable you to send and receive all documents and data fully electronically, eliminating many manual errors and saving you time.

Suppliers who automate their manual processes not only gain back time in their day but also see increased data accuracy. Customers are happier with more visibility into the supply chain, and employees can focus more on growth-building tasks that benefit the daily operations of your business.

Adopt AI capabilities

AI can feel overwhelming, but it doesn’t have to be. When you integrate AI capabilities into your supply chain, you’re eliminating hours of manual work. Plus, AI can analyze valuable data that enables you to discover new focus areas and processes that could be optimized.

With the help of predictive analytics and demand forecasting, you’ll see valuable returns in no time. Processes that previously took days to complete can now be checked off much faster, leaving plenty of time for tasks that really matter.

Your partner in supply chain digitization

Digitized supply chains enable more insight and visibility for both you and your customers, who will be happy to see that you’re up to date on the latest technology. With technology from SPS Commerce that integrates completely into your ERP systems, suppliers have the opportunity to introduce digitization into your supply chain.

Supply chain digitization doesn’t have to be complicated. To learn more about SPS Commerce Fulfillment, reach out to our team of experts today.

Morgan Asplund
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