It has become a tale of two eras – pre-pandemic and post-pandemic. While decades of horizontal and vertical evolution in supply chain have led to the maturity of systems and processes, the pandemic brought a new set of challenges to the forefront and exposed flaws in legacy ERP systems And now, the rapid proliferation of AI in today’s tools and technologies is adding to the complexity of an already crowded supply chain technology marketplace.
This is just the beginning of the ‘next gen’ for the supply chain industry. Status quo is no longer an option. Legacy systems won’t cut it. It’s time to look at new tools and technologies – or risk getting left behind in today’s increasingly competitive, ever-evolving business landscape.
Are you evaluating your existing technology? Is it future-proof – resilient and scalable? Do you rely on an inconsistent set of tools and technologies that mostly function in siloes? Does your supply chain lack an integrated approach and fail at the ecosystem level? How are you harnessing the power of AI, analytics and automation in your supply chain operations?
Selecting the right set of digital tools is crucial – but it’s even more important to not rush the process and to ensure you’re adopting a holistic approach for tool and technology selection.
When evaluating supply chain tools and technologies, consider the following:
- Supply chain parameters, such as inventory control, data management and visibility, legacy system replacement or integration requirements, and lead times
- Legal considerations, including contracting models, risk assessment and mitigation plans, intellectual property rights, and data protection
Beyond that, it’s important to keep in mind that, ultimately, it’s not about the tools and technologies, but rather what you’re trying to accomplish with them that really matters.
What are your objectives?
Streamlining Operations
New tools and technologies should streamline operations by automating and optimizing business processes, thereby reducing manual efforts, minimizing errors, and enhancing efficiency and productivity with cost optimization and faster cycle times.
Enhancing Communication and Collaboration
Select tools and technologies that leverage collaborative planning systems, communication platforms and data-sharing capabilities that drive seamless information exchange, real-time visibility and improved coordination among supply chain stakeholders.
Improving Decision-Making
The best tools and technologies available today provide advanced analytics, predictive modeling and real-time data insights that empower business leaders to make more informed, data-driven decisions. With accurate and timely information, organizations can optimize inventory levels, reduce lead times, mitigate risks and respond swiftly to market dynamics.
Enabling Visibility and Transparency
Technology should enable businesses to quickly identify supply chain bottlenecks, track shipments in transit, manage inventory levels and ensure compliance by delivering end-to-end visibility, traceability and performance monitoring.
Steps to Taking a Holistic Approach to New Tool and Technology Selection
1
Align Technologies with Business Objectives: Understanding your strategic business objectives and aligning them with new tools and technologies can improve operational efficiency, enhance customer satisfaction, drive cost savings and support sustainability initiatives.
2
Engage the Supply Chain Ecosystem: It is imperative to involve all key stakeholders, including suppliers, manufacturers, distributors, retailers, customers and employees, in your selection process. Assess the internal and external interdependencies, information flows and process interactions between various stakeholders.
3
Evaluate Functional and Technical Requirements: Analyze the technology’s key functionalities, process automation capabilities, and reporting and analytical features. Also consider things like system architecture, security features, data storage, user interface, and the ability to integrate the technology with existing systems.
4
Ensure Flexibility and Ease of Scalability: The new technology must be able to scale as the organization grows. Consider selecting a system that has the ability to handle increased transaction volumes, support multiple operations, and adapt to changing business models or market conditions.
5
Assess Vendor Reliability and Support: Influencing factors like training, vendor stability, customer support capabilities, implementation expertise, technical support, track record, and ability to accommodate future updates or customization requirements should play a key role in the selection of a partner who will help you implement the new tool or technology. Choose a vendor that is well-informed about the latest trends and technologies and able to advise you on their potential impact on your supply chain operations.
With the best-fit tools and technologies, organizations can optimize their supply chain operations, achieve efficiency and gain a competitive edge in today’s dynamic business environment. Not sure where to start? Bristlecone provides end-to-end consulting services, from technology evaluation and recommendation, to system design and implementation, to change management and support. Contact us to request an introductory meeting.
SUHAS ZUTSHI
Senior Consultant
Business Consulting
Bristlecone
