The Digital Transformation Imperative in a Post-COVID 19 World

https://morailogistics.com/digital-transformation-imperative-post-covid-19-world/

The world has changed and the supply chain has changed with it—here’s why digital transformation has been central to that change in a year dominated by a pandemic. 

Supply chains have had to adapt in number ways in response to COVID-19. However, no change in supply chains has been more prominent than the speed at which they’ve conducted digital transformation. Digital efforts which might’ve otherwise taken years to come to fruition, have taken a small fraction of that time. What this highlights is just how important digitization has been for supply chains and their survival during this time.

With that in mind, an obvious question arises. That question being: what about digital transformation makes it so critical to supply chain health? Even more specifically, what about it allows supply chains to combat the most disruptive effects of the pandemic? While there might be too many byproducts of digitization to name, it’s worthwhile outlining the most significant benefits it brings in regards to overcoming the pandemic in order to answer those questions.

This ebook covers the main ways in which digital transformation is helping supply chains deal with COVID-19 and remain resilient going forward.

Why has Digital Transformation Become Undeniable with the Onset of COVID-19?

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

The Top 6 Supply Chain Trends in the Year of COVID-19

https://morailogistics.com/top-6-supply-chain-trends-year-covid-19/

After a year dominated by a pandemic, many of the anticipated trends heading into 2020 have been reconsidered—here are 6 to be mindful of going forward.

The supply chain has experienced more disruption and subsequent evolution than any time in recent history. As a result of COVID-19, companies have had to reevaluate the state of their supply chains and make the necessary adjustments to make them thrive in a time of great uncertainty. What that means is that many expectations as to the state of supply chains this year have had to have been thrown out and replaced. And, while certain shifts in the supply chain have been long anticipated, they nonetheless require reexamining for how they’ve unfolded.

This article by Morai Logistics presents 6 of the most prominent trends in supply chain today.

Agility is More Important Than Ever

As important as forecasting is, it’s agility that’s gained greater attention over the course of this year. If this pandemic has demonstrated anything, it’s that supply chains can’t always anticipate the market. With that being the case, it’s critical that supply chains be agile (and flexible) enough to respond quickly to fluctuating demands.

Blockchain Gains Traction

Blockchain has been a technology that for years has gained attention and displayed promise. Yet, despite that being the case, reservations around its viability have remained and adoption rates have remained low. While the pandemic hasn’t radically changed that, it has once again highlighted the value (specifically, transparency and security) of the technology. As such, it has garnered renewed interest.

Sustainability is a Must

The demand for sustainability has been building for many years. COVID-19 has done little to dampen that demand. Simply put, sustainability within the supply chain is quickly becoming something that is no longer optional.

An article from Manufacturing.net expounds,

For example, 66 percent of millennials are more likely to patronize a company with sustainable and eco-friendly culture. Furthermore, brands that advocate for sustainability grow 5.6 times faster than brands that don’t.

Big Data Remains Critical

Supply chains need to be intelligent to succeed. As self evident as that is, the route to intelligence is multifaceted. One key facet is data. Data is the lifeblood of intelligence. Thus, the more data a supply chain has to work with (given the right tools), the more precise it can be with its intelligence. That precise intelligence, in turn, helps combat the many disruptions that supply chains might face.

AI Continues its Ascent

Tied closely to big data is artificial intelligence and its subsets (such as machine learning). Another critical component of an intelligent supply chain is having the right tools in place to utilize data. No tool is quite as robust and varied as AI. From forecasting to automation, its uses are as wide as they are advantageous.

The previously mentioned Manufacturing.net post explains,

By 2019 end, 37 percent of organizations had implemented AI, and in 2020 the numbers are poised to grow. Businesses that make use of AI technology in their supply chain have seen improvements. Such improvements include inventory management, staff productivity, supplier selection process, and customer experience.

Omnichannel is the new Standard

Finally, given the impact the pandemic has had on physical patronage, the need for omnichannel fulfillment has only increased.  What’s more, at this point, quality customer experience is nearly synonymous with omnichannel service. Customers desire seamless service, where what’s physical and digital no longer need to be clearly distinguished. This is even more so the case with the onset COVID-19. It’ driving an unprecedented number of customers online, with physical interactions having been reduced to a minimum.

Building a Strong Supplier Relationship: The 5 Essentials

https://morailogistics.com/building-strong-supplier-relationship-5-essentials/

There’s never been a more important time to have strong supplier relationships—here are the 5 key indicators showing that they are on the right track.

With the onset of the COVID-19 pandemic, the supply chain landscape has changed. Companies have seen their supply chains disrupted at a scale unlike anything witnessed in a long time. With that said, there are a number of steps companies should be trying to take for the sake of overcoming the impediments that comes with a global pandemic.

One of the most significant among them being strengthening their supplier relationships. Whether these relationships are new or old, what matters is that they display mutual value. In this trying time, it’s as critical as it’s ever been that companies build something with their suppliers that lays a foundation for a resilient supply chain. For now and the future.

This article by Morai Logistics highlights the 5 most significant markers of a strong supplier relationship.

Mutual Respect

No relationship can be long lasting in its success without a feeling of respect going both ways. Part of this respect will come from a company’s and a supplier’s reputation. If they’re both in good standing, a degree of underlying respect will emanate from that. However, respect is also a mindset. If supply chain leaders don’t go into talks with their suppliers with integrity, even a healthy reputation might not be enough to keep the respect from diminishing in the relationship.

Collaboration

Collaboration plays an integral role in supply chain success. As such, it’s no surprise that that extends to suppliers as well. It doesn’t matter how strong a supply chain is independent of its suppliers. Nor does it matter how reliable a supplier is if they aren’t aligned with their customers. Companies and their suppliers have to have a shared vision.

It is only through that collective vision that each party can get the most out of their relationship. What’s more, by not allowing the relationship to devolve into a back and forth struggle, a company’s supply chain efficiency goes up considerably.

Transparency

Communication is central to a healthy relationship. As obvious as that might be, what’s a little less so is how to go about communicating effectively. Perhaps the most vital component for doing so is transparency. In no small part it’s important because it shows respect, which, as mentioned earlier, plays a huge role in a healthy relationship. It also shows trust, good faith, and a great deal more.

The following from an article by Supply Chain Dive explains,

Transparency means full disclosure of any obstacles, intentions, limitations and issues you’ve discovered — in-house or anywhere in the supply chain — as soon as possible. It’s also productive to offer, in good faith, to work together to fix them.

Technological Investment

Supply chains always need to be innovating. Now as much as ever before. Moreover, that innovation has to be holistic. That means including suppliers in any advancements that are being engineered. Investing in the latest and greatest in technology together is not only mutually beneficial from the standpoint of what the technology brings. An added positive that arises from it is that it creates a sense of shared prosperity.

Attend to Yourself First

Finally, perhaps the most straightforward mark of a strong supplier relationship comes with internal competency and success. After all, if a company is profitable to work with and gives a supplier a competitive edge, then that’s as strong a reason as any as to why a supplier will want to continue working with them. The same is true the other way around, in the case of a highly successful supplier. In success, a stronger relationship is formed organically.

Reverse Logistics: The 5 Keys to a Successful Strategy

https://morailogistics.com/reverse-logistics-5-keys-success/

Reverse logistics isn’t something most companies relish and as a result is often overlooked, but if handled with the right care, it’s what gives a modern supply chain the competitive edge.

Of the many areas of a supply chain that get attention, reverse logistics is certainly an area amongst those that gets the least. It’s entirely understandable. Most companies focus on getting their goods to the consumer as opposed to getting those goods back. Nonetheless, it’s become critical for modern supply chains. Quality reverse logistics isn’t just about adding anther element of value to a supply chain, it’s it’s making sure it stays competitive in the future.

This article by Morai Logistics covers 5 steps companies should be taking in order to make their reverse logistics process more successful.

Figure out the why Behind Returns

Returns shouldn’t be a mindless process. They’re costly, and it’s up to supply chain managers to figure out why they’re happening. With the right approach, they can be turned from a cost to a benefit—an opportunity to improve. That improvement can come from a number of areas as the reason for the returns can stem from different places. Predominantly, they’ll be a consequence of an issue in the return policy or a product. As such, addressing this root issue is not only a cost-saving measure but a way to better understand the customer.

Have a Simple Return Policy

Make the process of returning as easy as buying. Customers are typically able to buy something online in the space of seconds. As a result, they expect the process of returning to be equally quick and simple. Not meeting this expectation leads to dissatisfied customers. Thus, it’s important to have a return policy that is both easy to understand but also straightforward to follow. Not only does this help your customers, it also helps your customer service team.

Make Sure Return Labels Come with the Packaging

Little things go a long way. In line with making returning easy, is the incredible value in ensuring return labels come with packaging. The benefits of this match that of having a simple return policy (happier customers and customer service team). However, they don’t stop there. A return label improves overall supply chain efficiency, as it allows for products to be returned quickly.

As this Supply Chain Brain article on reverse logistics, and return labels in particular, explains,

It can then be placed on a sticker that the customer can simply peel off and pop onto the product for a hassle-free return. Not only does this help the customer, but it also gets the product back to the seller much more quickly, improving the efficiency of the entire process.

Track Returns

At this point in time, it’s become apparent that having a high degree of visibility throughout a supply chain is vital to its success. That visibility should extend to reverse logistics. With that in mind, it’s critical that, in the same way monitoring systems are used for product deliveries, they should equally be implemented for returns. By doing this, companies can evaluate the treatment of their goods. Moreover, they can use this evaluation to see if any of their goods need fixing and if the handling of their product on returns is adequate.

Don’t Neglect the Right Technology

Finally, there’s the technological component of returns. As previously stated, reverse logistics is a key part of the supply chain. It can be seen as its final step. Hence, the same way in which the modern supply chain requires digitization, it then follows that so does reverse logistics.

The previously mentioned Supply Chain Brain article elabourates,

A transportation-management system (TMS) and warehouse-management system (WMS) allow for greater efficiency over the course of a reverse logistics operation. These applications combine to keep you in the know about where a product is, while always maintaining the correct documentation.

Ensuring Supply Chain Success During and After COVID-19

https://morailogistics.com/ensuring-supply-chain-success-covid-19/

Companies are facing significant hurdles since the onset of COVID-19, especially in their supply chains—here are the steps they should be taking to ensure supply chain success.

COVID-19 took everyone by surprise. In its wake business operations of all kinds have been disrupted. The supply chain in particular has shown its vulnerabilities and its need to change. With that said, it critical for supply chain managers not to be reactionary. Supply chains must change to adapt to the reality they currently face, however, they should also be ready for what’s to come down the line.

As such, it’s up to managers to take the kinds of action that will not only help their supply chains survive and thrive during this pandemic but also prepare them for whatever other disruptions or challenges that may yet come. After all, in a landscape that is broad and often unpredictable, myopic decision making can be catastrophic

This ebook presents the measures companies should be implementing in order to make sure they’re successful during the pandemic and for years to come.

What Should Supply Chain Managers be Doing to Beat the Pandemic?

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Top Technology Trends: Supply Chain 2020 – Part 2

https://morailogistics.com/top-technology-trends-supply-chain-2020-part-2/

In the year of the pandemic, technology is more important than ever for supply chains—here are four more technological trends to pay attention to in 2020.

Supply chain technology comes in many forms. Last week’s article covered four of the most prominent technology trends this year as outlined by Gartner. It showed just how diverse and varied the technological landscape is for supply chains. As more and more is asked of them—these demands having only been exacerbated by the onset of the COVID-19 crisis—the more sophisticated they have to be. As such, previously overlooked components of supply chains success, such as virtual reality, are now coming to the fore.

An article from earlier this year by Supply Chain 24/7 highlights the multifaceted demands placed upon supply chains in 2020,

The supply chain technology trends for 2020 reflect the growing demands for more service, more value, faster shipping, cheaper shipping, and an unrelenting pace to predict what’s going to happen next.

This article by Morai Logistics covers four more technology trends outlined by Gartner, what they are, and why they’re important.

Edge Computing and Analytics

Some technological trends mark a paradigm shift. That is very much the case with edge computing. Edge computing is a form of computing where the data that is processed is close to where the data comes from. Essentially, it comes down to proximity. Companies are currently operating in the era of the cloud. Where the data that is computed is data coming from one of only a handful of major cloud providers.

Edge computing changes that, allowing the data to travel a much shorter distance. Consequently, a whole host of benefits correspond with this change. These include greater data processing speed, higher online security, cost cutting, and more.

Artificial Intelligence (AI)

Artificial intelligence. The technology that has seemingly been a trend for many years and will continue to be for many years to come. AI and its many subsets (such as machine learning) offer a wide spectrum of possibilities for companies. An example of one of its many uses is that it empowers companies to more easily decipher the vast amount of data they gather.

With the primacy of big data in the supply chain, it’s easy to see how just this single use is so important. The same is true for many others. As such, many of these technologies have already become an integral part of supply chains. Yet, their many applications and progressive iterations means they’ll remain significant for a long time still.

5G Networks

The long-hyped 5G technology is closer to a reality than ever. 5G marks the next step in internet speed, significantly improving upon the data speed currently experienced. Thus, it has obvious advantages for the supply chain. Some of these advantages being reduced latency and greater real-time visibility. However, it’s worth noting that 5G implementation is still a little ways away and has only been further delayed by the pandemic. Hence, whether it remains a viable technology trend this year is in question.

Immersive Experience

Supply chain professionals are always looking for new ways to improve upon their supply chains. Immersive experience technology presents such an opportunity. It’s a broad term under which augmented, virtual, and mixed reality fall. In short, it refers to any technology that attempts to present the physical world digitally. This type of technology can go a long way for workers within the supply chain. This is because it allows them to learn or train their onsite skills in the safety of a virtual world.

Top Technology Trends: Supply Chain 2020 – Part 1

https://morailogistics.com/top-technology-trends-supply-chain-2020-part-1/

Supply chain technology is in a state of constant advancement, especially this year, given the circumstances—here are four of the biggest tech trends in 2020.

Gartner recently identified 8 technology trends for supply chains in 2020. Given the pandemic currently taking place and what an impact its having on supply chains, it’s more important than ever for companies to stay abreast of the latest and greatest in tech. However, it’s not enough for new technologies to simply be promising or have considerable potential to elevate supply chains. For a technology trend to be worth paying attention to the technology has to be in a place to make an impact now.

The Gartner article in question said as much when addressing its findings,

Gartner analysts have selected strategic supply chain technology trends that have a high potential for positive impact on people, performance and industries. Some are now reaching critical tipping points in capability and maturity.

This article by Morai Logistics covers four of the eight technology trends outlined by Gartner, what they are and why they’re important.

Hyperautomation

Automation has long been an undeniable force in the world of supply chains. Yet, there’ve been understandable concerns with its wholesale adoption. One such concern lies in the displacement of human workers. Another is the discarding of older legacy systems, leading to a lack of continuity between the new and the old. Hyperautomation is a way to bridge that gap and address those concerns.

It’s the process of connecting older technologies with the new. Think of older legacy platforms versus technologies like artificial intelligence and machine learning. Hyperautomation is an approach to getting the best of both worlds, resulting in a truly integrated system that is minimally disruptive. Moreover, it allows for the preservation of a human workforce as they can be augmented by newer technology rather than replaced by it.

Digital Supply Chain Twin

As supply chains get larger and more complex, it’s as critical as it’s ever been to keep track of them. A huge part of getting greater oversight of a supply chain is through digitizing it. That way, it can be followed in real-time and a have a trail of data running through it.

With that said, there’s a way to go even further. That next step is being able to visualize the supply chain from end to end. That’s what digital twin brings to the table. It is a digital replication of the physical supply chain. Consequently, it marks the next step for intelligent decision-making.

Continuous Intelligence

Being able to access quality information in real-time within a supply chain means faster decision-making. Not only that, but decision-making that doesn’t suffer the usual pitfalls that come with speed. In the fast paced world of supply chain, where response time is the difference between a satisfied customer and an angry one, that is crucial.

This is what continuous intelligence is able to do. It enables supply chain leaders to see data that has already been processed in as close to real-time as possible. As such, supply chain leaders can utilize it for responsivity that was hitherto impossible.

Supply Chain Governance and Security

Finally, there’s supply chain governance and security. Unlike some of the previous trends mentioned, this doesn’t refer to a specific technology. Instead, it’s a general trend that has found solutions in technology. It’s a response to the growing concerns around cybersecurity and privacy.

As Christian Titze, vice president analyst with the Gartner Supply Chain Practice explains in the Gartner article,

Gartner anticipates a wave of new solutions to emerge for supply chain security and governance, especially in the fields of privacy as well as cyber and data security … Think advanced track-and-trace solutions, smart packaging and next-gen RFID and NFC capabilities.

The New Normal: 5 Ways Supply Chains are Reshaping Themselves

https://morailogistics.com/new-normal-5-ways-supply-chains-reshaping/

Supply chains have undergone extreme change in response to the pandemic these past few months—here’s what they’re set to look like going forward.

It’s hard to overstate the impact COVID-19 has had on supply chains. It has brought risk to numerous processes within them, particularly in warehousing. Moreover, it has made certain areas of sourcing as well as supplies inaccessible or unreliable. Equally, it’s called into question the very shape of the modern supply chain. It’s demanded acceleration in some aspects of the chain and a step backwards in others.

This article by Morai Logistics highlights several ways in which supply chains are transforming in response to the pandemic.

Regional Supply Chains

With global supply chains breaking down due to the impediments that come with COVID, supply chain leaders are looking to adapt to a regional model. This is because many of these impediments are coming by way of companies’ reliance on China. As such, companies are now looking for regional independence in their supply chains.

A CNBC article from earlier this year, covering a EIU report explains,

“By building quasi-independent regional supply chains in the Americas and Europe, a global company will provide a hedge against future shocks to their network,” the EIU said. “For those companies that have this luxury already, they have been able to shift production of key components from one region to another as lockdowns and factory closures resulting from coronavirus have unfolded.”

Sourcing Diversification

While most companies aren’t going to outright abandon China, the sensible ones will look to not have sole sourcing dependency on them. It comes down companies wanting to have options in case of future emergencies such as this one. They don’t want to be once again stuck and scrambling for a path ahead. Thus, the “China + 1” approach has gained a great deal of traction. It gives companies the ability to still benefit from Chinese sourcing while having the flexibility to pivot.

Increased Storage

Although this won’t necessarily be a long-term trend, for now at least, shippers will require more storage. With many carriers having cancelled their shipments, leading to a much higher proportion of blank sailings than before. Put more simply: wherever demand has been negatively impacted, inventory needs to be stored.

As Supply Chain Dive’s post with Georgia Ports Authority Executive Director Griffith Lynch emphasizes,

Shippers will, in the short term, need ports and carrier partners that are able to provide extra storage, he said. Much of the warehouse space available throughout the U.S. is being absorbed by e-commerce customers that have seen a significant increase in business since the pandemic, he continued.

Focus on Collaboration

The value of strong supplier relationships has never been more apparent than it is now. More than ever before, there needs to be mutual trust and understanding between supply chain leaders and their suppliers. In an uncertain supply chain landscape where demand can rapidly change and hindrances can spring up in any section of a chain, it’s critical for those running them to be working in unison with their suppliers so they are able to anticipate and address any possible risks. What’s more, this additional consolidation of information will only make the supply chain as a whole run more smoothly and efficiently.

Digitization

There’s been a considerable focus on resilience following this pandemic. Rightfully so. Supply chains need to be robust enough to weather whatever comes their way. Central to achieving this for many companies has been digital transformation. Through going digital, companies have been able to address many of the factors necessary for resilience.

Via digitization, companies have been able to make their supply chains more transparent, integrated, collaborative, proactive, agile, visible, and so on. By giving themselves access to the best technologies available, companies are putting themselves in the best position to handle uncertainty.

Digital Transformation, Cross-Company Collaboration, and Supply Chain Growth

https://morailogistics.com/digital-transformation-cross-company-collaboration-supply-chain-growth/

Digital transformation has facilitated many changes within the modern supply chain but none more so than cross-company collaboration.

The modern supply chain looks very different to the tradition. In the past, supply chains worked in a linear, step-by-step manner, which was highly segmented. Conversely, modern supply chains are aiming for much the opposite. Therefore, modern supply chains have to be fast, agile, highly responsive, transparent, have visibility throughout their operations, and perhaps most of all, be integrated and collaborative.

There are many ways through which supply chains enacted these changes. Critically, digital transformation provided companies with the infrastructure to reach for these new standards. However, it’s crucial not to forget one of the key approaches to supply chain that allowed companies to make the most of digital transformation. That key approach being cross-company collaboration.

This ebook highlights how and why supply chain has changed over the years and why cross-company collaboration driven by digital transformation has been central the much of that change.

How has the Supply Chain Changed and why are Cross-Company Collaboration and Digital Transformation Essential to That Change?

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Disruption: COVID-19 vs. Regular Supply Chain Disturbances

https://morailogistics.com/disruption-covid-19-vs-regular-supply-chain-disturbances/

Supply chains are experiencing significant disruption as a result of COVID-19, but how does this disruption compare with others? 

If these last few months have shown anything, it’s that COVID-19 has not been a regular disruption for supply chains. Supply chains, even very well prepared ones, are going to face impediments every once in a while. They are something to anticipate and quickly overcome. This pandemic hasn’t simply been a singular obstacles to address.

It’s something supply chains have had to contend with for months and continue to wrestle with now. However, the supply chain fallout from COVID-19 shares many factors from more common disturbances supply chains face. Thus, it’s worth looking at the issues organizations have had these last few months and to compare and contrast them to what issues they’d otherwise face.

This article by Morai Logistics covers several ways in which this pandemic differs in how it impacts supply chains from usual disruptions.

Location Specific vs. Global

An important way in which COVID diverges from more common disruption is that it’s not limited by region. Typically, a single area is impacted by some sort of event. For example, if a supply chain is temporarily stymied by some extreme weather event. Managers of that supply chain can reliably know how great the area being disrupted is. Whether it’s a flooding or a hurricane or an ice storm, the reach of weather events tend to be contained to a city or country or region.

That is not so for COVID-19. Being a pandemic, its harmful effects extend all across the globe. There isn’t a single event or issue for an organization to wait out, address, or work around. COVID-19 is affecting everyone and, as a result, its an ongoing struggle for supply chains to deal with.

Supply and Demand

The next point of difference between this pandemic and other supply chain impediments is how it hits supply and demand. Commonly, when a supply chain breaks down due to whatever reason, it leads to their supply not being able to meet their demand. Their customers want something, but due to some disruption, their supply is damaged and is unable to meet that want. This pandemic has flipped that outcome as it has changed (both increased and decreased) demand.

On one hand, consumers, many of their livelihoods affected, are willing to spend less than before, obviously decreasing demand. On the other, with so much having been closed during various lockdowns around the world, demand for goods online has shot up. Of course, these differences don’t universally hold true, they are simply common enough to be noticeable. Regular disruptions can impact demand and COVID-19 has also hurt supply.

Timeline

Finally, one more considerable distinction between disruption via COVID-19 vs. others is the the timeline around it. Normally, a organization can get a sense of how long the obstacle they’re facing will persist. Or, how long it will take them to work around it. There is no such sense of time with this pandemic. It’s been at play for months and will continue to be for months (if not longer) to come.

As this Supply Chain 24/7 article articulates,

For most disruptions, the term is limited – or is at least quantifiable. For example, most disasters see short-term demand for rescues or emergency services immediately after an event. However, the term for COVID-19 is relatively unknown. We have seen a significant spike in the demand for hospital beds and ventilators, and social distancing is working in some areas to keep the number of infections below the system capacity. While most large disruptions have a defined short- or medium-term that can be fairly accurately predicted, the term for a global pandemic is long and uncertain.