All industries have entered the digital era in some way, shape or form and some have harnessed its potential more than others. Supply chains today rely heavily on digital technologies to ensure accuracy, delivery and optimization, but, are they using these technologies to their full potential?
A recent study conducted by McKinsey revealed that the supply chain industry had the lowest level of digitalization out of five sectors, standing at just 43%. This, however, is set to change with technologies such as the Internet of Things and machine learning transforming the industry.
Big data and the supply chain
The massive growth of big data has had a profound effect on the supply chain and logistics industry. The correct use and analysis of the vast amount of data available to a business has the potential to transform supply chains as we know them, but also the power to disrupt. Without the appropriate tools and expertise to manage large amounts of data, organizations can become overwhelmed and unable to gain valuable insights, causing issues across the supply chain and wider business functions.
By using big data solutions to properly manage an influx of data, supply chains can be rapidly enhanced by improving efficiency, cost optimization, responsiveness and greater integration. Using digital technologies to drive transformation in supply chains is becoming increasingly popular – although with 94% of organizations stating digital technology will transform supply chains, only 44% have a digital strategy in place to get there.
The digital risk
Many businesses are racing to join the ‘big data movement’, but this move doesn’t come without risk. Cybercriminals are always searching for different ways to hack into a business’s data, potentially causing millions of dollars’ worth of damage.
“Supply chain leaders must assess their company’s risk culture to determine their readiness to explore and adopt emerging offerings”
Research Director, Gartner
The more digitalized a supply chain becomes, the more at risk they become to a cyberattack. It is essential for a business of any scale to have a proper cybersecurity policy in place to effectively manage and mitigate risk throughout their supply chain network.
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