In recent years, digitization has become a buzzword across industries, and the supply chain sector is no exception. With the rise of digital technologies, supply chain operations in India are undergoing a significant transformation. From procurement to delivery, digitization is making supply chains more efficient, transparent, and responsive.
Guest author: Ramkumar Subramanian, COO – Avaan Intellect (Alumni of IIT & IIM-A, Veteran with 4 decades of Experience in Supply Chain Management with expertise in supply chain optimization, network planning, inventory planning & digitization of supply chain operations)
In this article, we will explore how digitization is changing the face of supply chain operations in India in optimizing process efficiency.
The impact of digitization on supply chain operations in India
Supply chain operations in India are increasingly leveraging digitization to optimize their operations. Digitization tools such as Automated Data Capture with Sensors and RFID tags, Blockchain for tracking, Warehouse and Transportation Management Systems, Electronic Data Interchange (EDI), Enterprise Resource Planning (ERP) tools, and electronic trade and commerce platforms are revolutionizing supply chain operations in India.
- Automated data capture through sensors and RFID tags eliminates manual effort in large operations.
- Blockchain provides complete visibility and traceability across the supply chain for very large operations.
- Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) improve efficiency and visibility for medium-sized operations.
- WMS optimizes inventory levels and stock movement while TMS optimizes transportation routes and delivery times.
- Integrating advanced digital technologies with WMS and TMS can create a streamlined and agile supply chain operation that delivers value to customers and enhances the bottom line.
By leveraging these advanced digital technologies, businesses can optimize inventory levels, reduce waste, improve delivery times, and enhance customer trust, creating a competitive advantage in an increasingly digital marketplace.
Advantages of digitization in supply chain operations in India
Digitization has several advantages in supply chain operations in India, including:
- Improved process efficiency
- Enhanced visibility
- Reduced costs
- Better decision-making
- Improved customer satisfaction
- Speed, agility and performance
- Easy-to-use interfaces
- Access to real-time data analytics and visualizations
Overall, digitization can help supply chain operations to become more efficient, faster, and more effective, while also providing easy access to critical information and insights. Digitization of the supply chain also helps in obtaining real-time data that can be used for resource allocation and planning, improving overall efficiencies and tracking performance with dashboards. It greatly helps in analytics and also evolving decision support systems.
Importance of digital skills in supply chain operations
The benefits of digitization can only be realized if there is a sufficient level of digital literacy in the workforce, especially for those who work on the shop floor. The shop floor workforce needs to be well-equipped with the necessary digital skills such as the ability to read digital information and knowledge to operate digital devices like scanners and others.
While advanced digital skills are essential for developing and implementing digital technologies, basic digital skills are necessary for performing basic operations. For instance, data entry, record-keeping, and data analysis require basic digital skills. Therefore, companies need to invest in training their employees to ensure that they have the necessary digital skills to perform their roles effectively.
In today’s digitized supply chain operations in India, there are several basic digital skills that are necessary to perform basic operations efficiently. Some of these skills include:
- Basic Computer Skills
- Data Entry and Analysis
- Email and Online Communication
- Basic Inventory Management Software
- Online Research
- Online Security
- Basic knowledge of Digital Tools and Technology
Along with basic digital skills, it is essential for the workforce to possess advanced digital skills. Here are a few advanced digital skills for the supply chain sector in India
- Data Analytics
- Artificial Intelligence (AI)
- Machine Learning (ML)
- Internet of Things (IoT)
- Robotic Process Automation (RPA)
These skills will enable employees to interpret data, develop predictive models, and automate decision-making processes.
In the context of supply chain operations in India, these advanced digital skills can be used to further improve the technologies and processes already in place. By investing in advanced digital skills, companies can unlock new insights, streamline processes, and gain a competitive advantage in the market.
Investing in training and upskilling for successful digitization
Digitization is transforming supply chain operations in India, making them more efficient, transparent, and customer-centric. However, to fully leverage the benefits of digitization, companies need to ensure that their workforce has the necessary digital skills. By investing in training and upskilling, companies can ensure that their employees are equipped to perform basic operations as well as develop and implement advanced digital technologies.
Avaan Intellect’s Academic Outsourcing & Knowledge Partnering provides strategic partnerships with Universities/Colleges as knowledge partners, with a focus on providing education and skill-based training in the areas of Logistics, Supply Chain, and Leadership management. The unique programme aims to offer colleges and universities access to the extensive experience of AVAAN’s industry veterans. If you wish to know more about the programme, please visit – Academic Outsourcing (gatiintellect.com)
With the right investments and strategies, digitization can become a game-changer for supply chain operations in India, enabling companies to stay competitive, agile, and sustainable in a rapidly evolving business landscape!