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Transportation Review | Thursday, March 31, 2022
The value of digital supply chain procurement is its capacity to outpace and outperform businesses that do not leverage technology.
FREMONT, CA: The critical issue is technology when identifying which procurement firms are the most effective. While technology has always played a significant part in procurement, it will be the digital transformation that separates the wheat from the chaff in terms of world-class performance and operations.
The value of digital supply chain procurement is its capacity to outpace and outperform businesses that do not leverage technology. Digital procurement trends have also aided businesses in becoming more responsive to their customers' needs.
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Real-time data access enables the development of predictive or "what-if" models that can be invaluable for risk mitigation and management. For instance, what if a supply chain bottleneck results in a significant delay, placing delivery times behind schedule? Knowing what might happen can make a significant difference in the actions taken if it happens. Predictive modelling is just one of the several benefits of timely access to additional data.
For a long time, the freight business has been relatively static, even to the point of stagnation. That is evolving as a result of digital procurement and industry-wide digitalization. Indeed, it is the digital transition that accelerates change. As businesses access more efficient processes, information, and actionable data, the pace of technological change and the rate of acceptance and adaptation to new technologies is rising. What took years to adopt and integrate can now be accomplished in months, if not weeks or even days.
Return on Investment is critical for most businesses deploying new technologies. The shorter the ROI, the sooner businesses benefit from the new improvements. A company's ability to adapt to technological advancements will determine success in this fast-changing market. It is no longer sufficient to obtain a freight cargo rate from points A to B. Customers are clamouring for more actionable data to feed their processes, necessitating a more linked supply chain than ever before.
Whether for procurement purposes or to increase the efficiency of a company's supply chain, digitization is now and will continue to be the key to the future. Every bit of meaningful information must be recorded, filed, and processed into something usable from beginning to end. Understanding and applying this will provide a benchmark for success, while failing to do so will expose businesses to the risk of becoming obsolete.
Technology, artificial intelligence, machine learning, and other novel technologies will not independently manage logistics and supply chains. Human engagement will need quality control and other unexpected acts at different phases. Yet, as usual, logistics personnel must consider the training needed to make this a fact. The aim is not to reallocate workers but to train them to think differently regarding how digital purchasing processes enhance and better daily work duties.
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