Digital Supply Chains have become a popular way to augment traditional supply chains. On a base level, there are very few differences between a traditional supply chain and a Digital Supply Chain (DSC). Both involve sourcing materials, turning the material into a product, distributing the product, then selling the product. However, Digital Supply Chains can track and complete these tasks through automated, digital processes that enable greater efficiency.
An effective Digital Supply Chain helps organizations keep up with increasing business demands – but many are having trouble creating and optimizing their Digital Supply Chain. According to McKinsey, only 43 percent of supply chains are digitized, which creates a host of missed opportunities. The same study found that companies who digitize a majority of their supply chain can boost their earnings by 3.2 percent, and their annual revenue growth by 2.3 percent on average.
With a Digital Supply Chain, your organization is supposed to enjoy increased revenue, improved decision making, and more agile processes. Unfortunately, organizations are often met with an assortment of challenges once they begin digitizing their supply chain. Let’s take a closer look at a few common roadblocks, and determine how to best prevent them.