Help, our value chain is not digital!
"Supply Chain 4.0," "Internet of Things," "Blockchain," "Advanced Robotics"… The buzzwords and trends related to logistics are seemingly increasing every day. The reason these trends have emerged is essentially the same: the world is changing at an ever-increasing pace, and because of this value chains must become faster, more efficient, more agile, and more accurate. Digitalization in various forms is often seen as a way to meet these demands. Large companies spend millions to stay ahead of their competitors and appear innovative. Every day, we see headlines in newspapers like "Company X invests millions in digital tool Y to create the world’s most efficient logistics."
For many companies out there, this may seem like an unattainable dream. How can they free up time and money so they too can take advantage of the digital opportunities available? How can they avoid becoming irrelevant in the eyes of their customers?
The answer to this question is not easy, but the starting point is simple. Begin with processes and data.
Regardless of the demands tomorrow will place on companies, we must first be absolutely certain not only about WHAT we do but also HOW we do it. By clearly defining and documenting processes, we can identify areas that can be simplified or improved with the help of digital tools.
The next step is data. Now you might be thinking, "Yeah, yeah, but everyone’s talking about data." And you’re absolutely right. Almost everyone talks about data today. The analogy "garbage in, garbage out" is a classic for a reason. A company can invest in the world’s most amazing systems or tools, but if we don’t have a solid grip on our data, the systems themselves are worth absolutely nothing.
What we mean when we say a company should review its data involves several things:
- What type of data should we collect?
- How should we collect the data?
- How do we handle the data we've collected?
The first step is to design a strategy for what kind of data should be collected. In theory, we can collect data on almost anything. But the more data we collect, the harder it becomes to control it. Therefore, it’s important to constantly evaluate what data should be collected, both in terms of current needs and potential future needs.
The next step is to consider how the collected data will be managed, stored, and cleaned. Without a clear process for this, there’s a significant risk that the effort put into collecting data will result in zero value for the company.
Finally, decisions need to be made regarding how data should be collected. Without clear guidelines, there’s a risk that two data points can't be compared because the circumstances at the time of collection could affect the actual data.
All of this may seem overwhelming to some. But keep in mind that for every small step you take, you are one step closer to all those cool new trends such as "Supply Chain 4.0," "AI," or "Advanced Robotics"!
Are you interested in learning more? Get in touch with us at DB Schenker Consulting!
