Creating Value – When Digital Meets Physical
Digitization has touched upon all aspects of businesses, including supply chains and operating models. Today, technologies such as RFID, GPS, and sensors have enabled organizations to transform their existing hybrid (combination of paper-based and IT-supported processes) supply chain structures into more flexible, open, agile, and collaborative digital models. Unlike hybrid supply chain models, which have resulted in rigid organizational structures, inaccessible data, and fragmented relationships with partners, digital supply chains enable business process automation, organizational flexibility, and digital management of corporate assets.
In order to reap maximum benefits from digital supply chain models, it is important that companies internalize it as an integral part of the overall business model and organizational structure. Localized disconnected initiatives, and silo based operations pose a serious threat to competitiveness in an increasingly digital world.