Mar 23

An Easy to Execute Supply Chain Digitalization Framework for Manufacturing Companies

Supply Chain Digilaization

To succeed and compete in the new digital age, manufacturing companies need to stay competitive on price and bring value to customers beyond their product offerings. Companies with highly digitalized supply chains and operations expect efficiency gains of 4.1 percent annually, boosting revenue by 2.9 percent a year, as per a recent PWC study.

Successful digital transformation requires manufacturing organizations adapt to a structured approach to achieving goals of the digitalization. There is a lot of buzz on the internet about digitalization, however, we would like to outline a very simple model for the manufacturing companies to embrace digitalization.Consider all the business activities of supply chain operations or manufacturing – Plan, Source, Make, Sell and Return

  1. Consider all the business activities of supply chain operations or manufacturing – Plan, Source, Make, Sell and Return
  2. Measure current performance of each of these process elements from 1-5
    • Vendor Management: Vendor evaluation, Supplier collaboration and visibility of materials at the supplier end
    • Inventory Management: Receiving, inventory management and visibility
    • Demand Management: Demand forecasting, finished goods inventory, inventory turns, on-time delivery, order fulfillment and capacity utilization
    • Manufacturing: Changeover, total productive maintenance, WIP, stoppages and safety
    • Warehouse and Logistics: Routing and scheduling, Inbound and outbound logistics, warehouse capacity optimization and manual Vs automation
    • Returns: Traceability, warranty management
  3. A typical digitalization journey starts with a process area and the lowest performance score or an area that can drive greater efficiency to the business. For example, digitalizing the vendor management of a business to save significant money that is being spent on unproductive supplier collaboration could save time and money
  4. Design KPI framework for calculating ROI for the digitalization effort
  5. Identify a simple digitalization platform that can support the organization’s strategic objectives, easy to implement, facilitates quicker ROI, and more importantly variabilizes the cost so that the investments follow the business rhythm
  6. Continue with the digitalization of other programs after stabilization of the first project

The above approach maintains a constant ROI throughout the implementation lifecycle while taking care of change management adaption.

Our eSeal, Supply Chain Visualization platform is a modular, cloud-based platform, which is tightly integrated with all major ERP suites and enables an integrated digital supply chain.

Get more insights on how our solution is helping leading manufacturing companies in their digital supply chain transformation journey from this on-demand webcast.

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