Disadvantages Of Digital Supply Chain
“Supply chain digitization means moving all aspects of a supply chain online, including procurement, invoicing, approval cycles and payment procedures.”
Companies benefit from anytime access, additional time and saving money. E-invoices allow companies to save an average of US$505 per invoice while eliminating inefficient and redundant approval systems.
By having …show more content…
Many Manufactures have started using different technologies such as Telemetry because they are able to show manufacturers when the machines need service as well as help with inventory. Connectivity, intelligence, scalability and rapid, are the advantages that manufacturers can benefit from Digital supply chains. By using Digital supply chain, manufacturers can monitor fulfillment and transport of their products. It also helps with planning for demand and supply. Blanchard, D. (2014).
Even though digital technologies have connected the world together, there is still difficulty with some businesses in using them properly. Virtual invoicing is not properly utilized and there are still late payments. By using digital technologies, communication and collaboration are improved. “Gartner predicts that by 2018, half of chief supply chain officers in global companies worth in excess $1 billion, will design and manage supply chains that provide support to digital businesses. They may well have to if they are to maintain any kind of competitive …show more content…
DHL which is one of the major logistics service providers has announced that they will rely increasingly on big data to minimize risk. Trials done on using data glasses for picking processes, showed increased productivity by 25 percent. (https://www.atkearney.com/paper/-/asset_publisher/dVxv4Hz2h8bS/content/id/6501019, 2015).
A recent research by Accenture shows that the Internet of Things (IoT) could drive $6.1 trillion of economic gains for the U.S by 2030, which is equivalent to an additional 2.3% of GDP. Axson, D., & Hanifan, G. (2015). In order for companies to survive and continue to keep their customers, it is important for them to have a digital supply chain. Sustaining the environment is a daily issue that we need to address; hence digital supply chain is one solution that can address the problem of sustainability. Other benefits include, saving time, money, improving supplier relationships and increasing security. It is therefore critical that companies to turn to digital supply chain to avoid going out of business as consumers are now in need of efficient and reliable systems.