Ways in Which Digital Supply Networks Can Assist Chief Operating Officers in Broadening Their Supply Chain?

The flaw of the classic linear supply chain was revealed during the COVID-19 crisis: the entire chain halts if one of its parts fails. To establish a more resistant supply chain, dynamically optimized digital supply networks (DSN) that can merge multiple suppliers into the supply chain become crucial. A DSN enables various partners to exchange and scrutinize information through active communication. Consequently, when an irregularity arises, businesses can promptly adapt their material supply, production, and logistics to continue manufacturing operations. Due to their significant adaptability, DSNs enhance supply chains through decentralization and heightened agility, albeit necessitating current data from every supply chain participant in the network. To this end, organizations with real-time capabilities have an advantage in integrating into a DSN.

The core of a DSN’s success hinges on its ability to amalgamate a range of data using the IoT. To evade data silos, details such as production requests and order fulfillment need to be blended with R&D/production/procurement procedures. This merging of internal and external data, functional processes, and systems can generate a transparent network among corporations, suppliers, and subcontracted manufacturers. When coupled with artificial intelligence (AI), a DSN can deliver superior demand projections and averts material scarcities by upholding inventory levels. For instance, a prominent global home appliances corporation fostered an interconnected factory by linking customers’ orders with production processes. This linkage established instantaneous connectivity among consumers, products, machinery, and assembly lines. By enhancing production adaptability, manufacturing can be organized in accordance with demand even during supply chain disruptions. Orders can be reliably met by transitioning production to alternate factories and suppliers while still accommodating the need for customized products across various regions or customer segments.

Nonetheless, to qualify as DSN suppliers, enterprises must earnestly strive to establish and enhance their IoT capabilities. The pivotal initial phase entails constructing real-time data links capable of facilitating data interchange among systems. An often-employed strategy for IoT pioneers is to digitize production machinery with the aid of seasoned OT edge connectivity solution providers who can assist in acquiring real-time data from OT devices via diverse protocols.

Upon acquiring real-time data, the subsequent task is to forge a secure and dependable network for consolidating information from distinct devices and systems. Production capacity can be estimated through real-time data scrutiny, and production lines can be adjusted in response to fluctuating market demands. Subsequently, it becomes feasible to incorporate insights about operations, supply chains, and product lifecycles from external suppliers or subcontracted manufacturers. At this juncture, the perks of a DSN and a more sturdy, diversified supply chain are within reach.

Through a gradual digitization process, a conventional mass-production and cost-focused supply chain can evolve into a mass-customization and demand-centric DSN, equipping your firm with the competitive edge to confront any forthcoming challenges.

For further details, please explore our dedicated page.