SUPPLY CHAIN
The time S Barry Bradley takes a look at how digital transformation can ease supply chain pressures 6
scw-mag.com
is now
eismic shifts in consumer behavior driven by the pandemic and its lingering after-effects, political and social unrest, labor and equipment shortages, the bullwhip effect on inventory, the highest inflation in a generation and a looming recession continue to wreak havoc on supply chains. Digital transformation across the entire supply chain of CPG brands and retailers, from planning consumer demand through sourcing, production, and transportation, is now mission-critical to building the resilience, flexibility and agility necessary to compete today and in the future. Digital transformation is the practice of leveraging technology to improve and/or redesign business processes across a company. It includes automating manual processes, using data to make fact- vs. intuition-based decisions, and leveraging cloud technologies to integrate data, analytic applications, and access to all business operations, suppliers,
and customers. Done well, it will save time, give everyone the information they need to make smarter, more timely decisions, drive collaboration and streamline operations. While not a new concept, the urgency around digital transformation has skyrocketed. The firefighting mode that defined the last two and a half years is now being replaced by strategic, holistic and rigorous transformation roadmaps with aggressive implementation timelines. Globally, businesses are set to spend an estimated $4.4 trillion on digital transformation initiatives. In 2021, venturebacked supply chain management companies received $11.3 billion in funding, twice that of 2020 and 24 percent above the previous alltime high in 2019. Supply chains are now being recognized as essential drivers of competitive advantage and differentiation. The National Center for the Middle Market reports that middle-market companies with a digital vision that is clear,