In recent times, technology has impacted the way people communicate, work and live in the world. Apart from digitally enabled sectors such as IT and BFSI, agriculture, CPG, and food processing, Distribution and supply chain operations are also on the road to digital transformation. Further, complete digital disruption has led to changes in the way businesses are functioning.
Using data with superior intelligence is the measure for running Distribution exceptionally well today. It is only with digital enablement, that copious amounts of data generated from customers, partners, and business can help with streamlining of business operations. Complexities in Distribution is now ascertaining the need for digitization, as the efficiency of distribution today affects top-line growth as well.
To postulate this, a study by Deloitte showed that around 80% of organizations with excellent Distribution capabilities rank above average in growth per se, as compared with 8% of those with lower Distribution competence that are reflecting below average revenue growth.
The benefits of digitization for Distribution include shorter lead times, reduced complexity and faster functionality of overall operations. These add to the effectiveness of Distribution operations and consequently to the organization’s performance, drawing a clear result between output and outcome.
The following trends are a clear indication as to the criticality of digitization for Distribution networks:
- Supply networks that are global – While operations are increasingly being spread worldwide, data and information requirements are bound to be on the rise too. Each city, or each country have their own indigenous systems and domestic quirks as to the quick pace of paperwork being conducted, and how for instance, loading and unloading is done. Real-time data on port traffic or weather conditions play a significant role in planning. Further, insights based on this data are crucial for optimum planning, which can lead to an efficient global Distribution network.
- Dynamic milieu and automation - Real-time decision making requires voluminous data, and automation in such circs becomes more important. Since we are living in an age where we are hyper-connected, meaning we can have access to different kinds of info, this can help in planning a more responsive and robust distribution. While goods are increasingly getting commoditized, there is a parallel increase in service quality and delivery. Similarly, real-time info on stock availability, status in shipping, updates in pricing, regulations, etc., can boost service quality.
As the whole world becomes more connected and intelligent, order visibility and views of inventory, etc., becomes super important for different parties involved, be it, customers, suppliers or distributors. - Smart goods – With superior intelligence built-in, all components of Distribution are connected today. All products or even individual boxes can have smart tags that permit us to track their location as well as storage conditions (such as, humidity, temperature, pressure, etc). Collecting such data points will ensure the product is in prime condition but will also help settle disputes, in case of spoilage.
An un-fragmented approach, where participants are collectively looked at is the best way for superior Distribution. An able platform that ropes in customers, and suppliers bringing that onto the same page is the only solution for achieving this.
Take a peek at our Modern Distribution and view the case studies on how some of our customers nailed digitization with our help: https://www.sonata-software.com/ip/industry-platforms/modern-distribution