In a world that increasingly relies on technology, businesses risk falling behind if they don’t embrace the opportunities that this brings. From new ways of building relationships with customers, to fully-integrated supply chain management, businesses should be looking at how they digitise processes throughout the organisation in order to reap the benefits.
I’ve previously written about the extensive benefits of digitising the supply chain, so I thought it would be useful to also cover what the top three mistakes are that companies make when doing this, and how to avoid them.
So, in no particular order, here they are:
1. Not ensuring tie-in with the wider business strategy
When you have one department pushing for a piece of technology that will benefit their function, it’s important to consider how it fits with the wider business strategy. It may make your supply chain more effective, but what impact will it have on e.g. customer relations? Will it affect your brand in a way that supports your corporate strategy? Will it help create new, or enhance existing, competitive advantages? The considerations will be unique to each organisation so you’ll need to ask your own questions, but if you don’t get the right answers to them, that particular piece of technology may not be the right fit for your business. Essentially, having a vision for what the supply chain is supposed to do to support overall corporate strategy needs to be the starting point. There is an interesting section of this article that I shared on LinkedIn that discusses, in more detail, the importance of strategy in this context.
2. Failing to focus on the areas that matter the most and leveraging the new data created
The supply chain is often one of the least digitised areas of the business. Trying to digitise too much too quickly comes with a high risk of failure. Instead companies need to focus on areas where supply chain digitisation will have the highest positive impact overall. For example, concentrate on technologies that enhance areas that already differentiate you vis-à-vis the competition. In addition to being selective in this way, it is also important to be willing to make the organisational improvements necessary to take fully advantage of all the new data and insights created by a digitised supply chain. For example, is the business flexible enough to respond to real-time data? If not, culture and process changes may be needed.
3. Going for gold plated solutions, rather than practical fit-for-purpose ones
Many companies fall into the trap of being blinded by the amazing new technology that’s available, instead of buying something that fits their actual needs and goals. Also, the falling costs of technology relevant to digitising the supply chain, has led to some companies making rash and unwise decisions.
If you’d like to ensure you get the digitalisation of your supply chain right first time, we can help you develop a winning strategy and make the correct purchasing decisions. Get in touch today to find out more.
