Digitization of Processes + Advanced Digital Strategies = Transforming the Supply Chain for Better Business
Do you have challenges similar to these:
- Backlog of material bookings – materials that were installed and consumed but not booked on time
- Misplaced inventory (inventory lacks) – materials that we see in our financials as stock in a certain location, but they are physically not present there
- Excess ordering, excess inventory – ordered but not consumed inventory, due to lack of inventory data for consumption, inventory levels etc.
In today’s dynamic business environment, rapid adaptation and efficient process management are crucial for gaining a competitive advantage. However, if you ask me what is worse than a poor and inefficient process, the answer is a digitized poor and inefficient process!
A Step Towards the Future: Digitization of Processes
“Through projects “Track & Trace” and “Digital Strategy,” we focused on implementing the digitization of processes and developing advanced digital strategies to optimize operations in the supply chain.“
– LOGIKO TEAM
Track & Trace Project
Here are several key aspects of how the implementation of Track & Trace systems can contribute to lowering costs:
- Increased Transparency: Implementing Track & Trace systems allows real-time tracking of every stage of production and the distribution chain. Increased transparency reduces the risk of product loss and damage, facilitating quicker responses to exceptional situations. Through accurate tracking, companies can identify and address issues before they become serious, reducing operational costs.
- Loss and Theft Reduction: Tracking products from source to destination prevents losses and thefts in the supply chain. If a product is lost or stolen, the Track & Trace system enables quick localization and recovery of lost or stolen goods. Reduced losses directly impact the overall costs of production and distribution.
- Inventory Optimization: Precise inventory tracking enables companies to better manage their inventory. Track & Trace systems provide real-time information on inventory status, helping avoid excess stock or shortages. Inventory optimization reduces the need for storing large quantities of products and related storage costs.
- Rapid Response to Issues: Real-time tracking allows for a quick response to irregularities in the supply chain, such as delivery delays or quality issues. Rapid response to such problems can prevent further losses and avoid additional costs that might arise from issues in the processes.
- Handling Cost Reduction: Track & Trace systems often include automated processes that reduce the need for manual handling of products. Automation decreases the risk of human errors, increases efficiency, and lowers handling and manipulation costs within the supply chain.
CASE STUDY of the project Track & Trace Project: In the scope of this project, we focused on recording and analyzing processes in the supply chain. The goal was to create a digital platform for tracking equipment from source to destination. Digitalization enables real-time tracking, reduces losses, and optimizes material flow. Track & Trace systems in the supply chain have a significant impact on cost reduction in several ways. In order to define the critical points of the logistics processes that are causing these challenges to happen, an initial phase 1 of this project, a consultancy phase, has been agreed on and executed. There was a need to analyze current warehousing and distribution network setup, inventory management and inventory visibility processes, with suggestion of new and improved logistics design. The consultancy phase of the project included the following activities: 1. Analysis of current warehouse layout (inventory management and inventory visibility processes) and distribution network setup with processes 2. Determination and design of new processes (visibility, traceability, cost) 3. Identifying the technology of real-time tracking warehouse and distribution network setup 4. Proposal for implementation of adequate technology and processes through all locations and distribution networks with a focus on reverse logistics for CPE materials and E2E management 5. Proposal for integration with existing A1 systems and applications All the activities were executed with the goal of increasing efficiency in warehouse processes, inventory stock accuracy, shipment tracking, and tracking of field assets and providing reporting. The processes that were analyzed during the consultancy phase were: 1. Assets entry 2. Labeling 3. Assets exit 4. Assets transfer 5. Acknowledgment of entry of assets at the place of destination 6. Alarms for the movement of physical assets 7. Return of assets to the warehouse by technicians and couriers 8. Labelling of existing (inherited) assets on the site/location 9. Inventory status and inventory-related processes with warehouse location detection The project has resulted in the following: 1. AS-IS analysis of the current processes 2. TO-BE design of the new digitized processes 3. Supporting technology recommendation 4. Systems enhancements recommendation
Digital Strategies for Production and Development
Digitalization of processes and the development of digital strategies are crucial for optimizing the supply chain in modern business. Through my projects, I have seen a direct impact on operational efficiency and the ability of the company to respond quickly to changes.
Digital transformation is not just technological progress but also a key factor in achieving long-term sustainability and success in the market.
CASE STUDY of the "Digital Strategy Project": This project focused on recording production and development processes to identify key elements that can be digitized. The goal was to create a digital strategy that supports innovation, increases efficiency, and facilitates adaptation to changes. Production Optimization: Digitalizing production processes enables better planning, performance tracking, and faster adjustments to changes in demand or production conditions. Development Management: Integrating digital tools into development processes speeds up the flow of information, encourages team collaboration, and reduces the time to launch new products to the market. Benefits of Digitalization in the Supply Chain: - Efficiency and Cost Reduction: Digitalizing processes in the supply chain reduces time spent on processes, decreases errors, and optimizes resource utilization, resulting in reduced operational costs. - Increased Flexibility: Digital strategies provide flexibility in adapting to changes in the market or business requirements, enabling companies to respond faster to a dynamic environment. - Improved Quality and Transparency: Real-time tracking and control improve product quality, while digital transparency contributes to the trust of clients and partners