What is supply chain digitalisation?

Supply chain management has evolved significantly from a focus simply on distribution. Now, to remain competitive, businesses need to proactively improve performance and give outstanding value to customers and partners at every stage of production and provision.  

Digitisation is the latest move to support better integration, optimisation, collaboration, quality control and transparency within today’s complex supply chains – from the point of gathering and converting raw materials to finished products to the point of sale to consumers.

Below, we examine in more detail what it entails and why it matters. 

What is supply chain digitisation? 

Digitisation of the supply chain – also referred to as digitalisation or digital transformation – means harnessing the power of technology to enhance supply chain performance and, in turn, improve the efficiency, productivity and profitability of the company.  

There are three main approaches to digitisation of the supply chain:

• Data management: Supply chain management tools can help businesses collect and analyse data about everything from travel and load times to fuel costs, planned and actual capacity provides the business intelligence required to guide strategy and inform evidence-based decision making. 

• Process integration: Ensuring your systems are connected and cohesive leads to more transparency and better coordination between different performers in the supply chain, ultimately facilitating more efficient and effective end-to-end supply chain solutions. 

• Use of digital equipment and tools: From robots which can pick and pack items in a warehouse, to geolocation tools to monitor the progress of deliveries, or warehouse administration systems to increase automation, technological advancements are improving all manner of systems and processes. Inventory management software, for example, is used to automatically receive orders placed on an online store, process them, updates stock levels and make available concurrent inventory computations. 

Thinking about studying Supply Chain Management at master's level? Find out why you should choose a CILT-accredited course:

Why is supply chain digitalisation important? 

The digitalisation of general business operations and technological advancements, such as Industry 4.0, Digital Twins, Machine Learning (ML), and Artificial Intelligence (AI), are accelerating the digitisation and optimisation of supply chains.

Using analytics to enhance supply chain automation and management creates the visibility needed to identify competitive edge and strengths, as well as weaknesses and risks, accelerating future decision making and boosting supply chain resilience by optimising pricing and operation costs. 

Why is supply chain digitalisation important? 

The digitalisation of general business operations and technological advancements, such as Industry 4.0, Digital Twins, Machine Learning (ML), and Artificial Intelligence (AI), is accelerating the digitisation and optimisation of supply chains.  

When the global pandemic hit, much of the ‘new normal’ relied on digital solutions and automation, not least when employees were forced to work remotely or isolate from colleagues and customers.

Businesses which were forced to embrace these new technologies have changed the way they do business. Like their customers, they expect an on-demand service within their supply chain and other aspects of their business operations. 

Using analytics to enhance supply chain automation and management can give you and them the visibility needed to identify competitive edge and strengths, as well as weaknesses and risks.

In turn, this can help to accelerate future decision making, add value to business relationships and boost supply chain resilience by optimising pricing and operation costs. 

What are the benefits from digitally transforming the supply chain? 

Ultimately, supply chain digitalisation can positively affect your bottom line. You’ll be able to gather and analyse massive amounts of data with far less effort and much more quickly than with analog systems.  

Better traceability and real-time data insights across the entire supply chain enable companies to act fast when faced with potential disruption to their logistics, something which caused significant problems during the recent pandemic.

Equally important, it can identify opportunities for automation, reducing pressure on manual resources and the human error that often accompanies it. 

By switching to digital approaches for standard administrative tasks, such as accepting deliveries, stock inventory or controlling the flow of materials, parts or products, for example, you can move away from traditional paper-based and face-to-face interaction, saving both time and money, while also reducing the risk of human error. 

Why study our online MSc in Supply Chain Management? 

On our MSc in Supply Chain Management, you’ll study a 40-credit module dedicated to Strategic Supply Chain Management and Digitalisation.

Looking at the effectiveness of strategic tools for supply chain management, it will familiarise you with digitalisation techniques in the real world that aim to address the changing nature of operations in response to supply and demand. 

Our course is accredited by the Chartered Institute of Logistics and Transport (CILT), the leading professional body for more than 33,000 members worldwide who work in supply chain, logistics and transport. This means that the curriculum is relevant and up-to-date, with high-quality teaching guaranteed.

On successful completion, you’ll also meet the educational requirements for CILT Chartered Membership (subject to fees), enabling you to potentially go on to become a Chartered Fellow (FCILT) – the highest membership grade available. 

Are you ready to learn more about the fast-paced, dynamic world of logistics, transport and supply chain management? Discover UCLan’s online MSc in Supply Chain Management: 

MSc Supply Chain Management

Fill an industry talent gap with sought-after skills.