The Impact of Supply Chain Digitization

Supply chain digitization will remain an important investment area for the foreseeable future. In order to succeed, firms must conduct thorough research on digital solutions best suited for their specific business needs and then negotiate with their selected vendor to achieve the best value for the organization. 

While there are multiple challenges to digitizing your supply chain, many organizations have started this journey, increasing their system capacity and building on this base to continue growing in the new year. It is crucial therefor to understand how supply chain digitization impacts businesses across different verticals and supports an automated shipping environment to better serve customers. 

How Will Digitization Impact Supply Chains?

In today’s changing business climate, digital will no longer be a one-of-a-kind, stand-alone endeavor. Rather, digital is becoming embedded in businesses as an integral fabric of their operations. 

A well-connected digital supply chain keeps a firm up to date on all current operations and aids in the early detection of delays and productivity issues. The ability to respond promptly to disruptive actions is made simpler by visibility and contemporaneous monitoring, to assist in reducing supply chain disruptions. 

Increased supply chain complexity is driving the need for more complex and integrated data absorption. While increased connectivity brings a plethora of control challenges; when combined with well-designed automation, this symbiotic relationship can provide the highest level of supply chain visibility.

By utilizing sophisticated supply chain digitization tools, businesses are able to uncover previously hidden supply chain patterns and trends. The simplest way to acquire real end-to-end supply chain visibility is to invest in a robust visibility platform. 

All these things sound promising, but how is the situation in reality? In a recent survey conducted by Forbes Insights and Cognizant, more than 100 supply chain executives from leading North American companies were asked to describe their supply chain digitization activities.

  • 49% are actively investing in digital supply chain overhauls
  • 33% are selectively using digital tools to supplement existing supply chains
  • 18% are actively researching and developing a digital supply chain strategy for the future. 

In fact, not a single respondent answered “doing nothing” in terms of upgrading their supply network. Recent global supply chain disruptions will be making supply chain digitization a central focus for the upcoming years.

The respondents, however, were discouraged by the pace of digitization. Only 26% were completely satisfied with their supply chain transformation efforts, whereas the other 74% were either somewhat transformed or minimally transformed.

What Are the Main Benefits of Supply Chain Digitization?

Cost Efficiency

The goal of supply chain digitization is to automate and reduce wasteful resource utilization so that the team and executives can spend less time on transportation management and more time on strategic planning.

Every firm’s supply chain management process has a modern challenge in creating a digital supply chain ecosystem with outstanding visibility and communication. Companies can increase profits, while increasing customer satisfaction, by deploying a system that effectively organizes and optimizes supply chain productivity.

For example, it is feasible to save up to 75% on expediting expenses in transportation with increased automation controls. 

Better Decisions

To build and optimize your supply chain strategy, you’ll need access to a lot of historical data. Supply chain digitization can support end-to-end supply chain visibility, including not just shipment tracking, but also customer order data to enable streamlined company operations. Using a data-driven strategy, you can add clarity to your plan and rest assured that you have access to the best possible data prior to making a strategic decision. 

One of the most significant benefits of supply chain control digitization is that it frees you from multiple tedious and manual tasks, enabling you to focus on the big picture. These systems can swiftly analyze millions of data points and determine the roots of demand changes using automated forecasting models underpinned by machine learning.

Risk Management

Risk management will be one of the most important challenges for organizations in 2023, particularly in supply chain management and logistics. Supply chain digitization enables a more proactive approach to identifying dangers and vulnerabilities in globally dispersed supply chains.

With real-time data and simplified processes, it’s now manageable to get a large picture view and spot operations weaknesses more quickly. Erroneous transactions, invalid operations, delivery delays, and even cyber-threats may all be tracked, and managed, using digital supply chain technologies.


Even if you have a limited group of very reliable vendors, maintaining transparent and trusting relationships with them is critical to a successful supply chain risk management approach. Blind spots in transportation vendor management can frequently contribute to an unnecessary amount of hidden expenditures. Inbound freight, for example, can raise transportation costs up to 40% if not managed. 

As a result, supply chain digitization can provide added visibility into your supplier connections, which is critical for effective business and long-term partnerships. 

Visibility Through Digitization

A well-connected supply chain can keep you informed about all current processes and helps you to proactively spot potential problems. Visibility and system generated warnings on possible supply chain disruptions, concurrent monitoring make it easier to manage disruptive activities, reducing the chance for extended supply chain damages.

As companies work to make their supply chains more agile and robust, the need for more complex and integrated data is critical. Increased data connection raises a host of control issues; but, when paired with well-designed automation, this symbiotic relationship may deliver the best supply chain visibility available. Arming businesses with the ability to identify new patterns and tendencies by seamlessly collating and standardizing multiple data sources into a single version of supply chain truth. 

Investing in supply chain digitization is the most effective approach to gain end-to-end supply chain visibility. A solid supply chain visibility solution creates a clear and integrated environment for all supply chain stakeholders, allowing insight into orders, transactions, and customer shipments. Additionally, it allows businesses to grow profits while sustaining quality to maximize supply chain efficiency.

Supply Chain Digitization with Agistix

Agistix can help you overcome all of your supply chain challenges with our high-end visibility software. Our key advantage is a quick l, non-disruptive integration that requires no change to your regular business flow; however, after implementation, you will see results in as soon as four weeks.
Our extensive business expertise lets us offer a multifunctional, easy-to-use visibility solution to have your supply chain in the palm of your hand. Learn more about our supply chain platform solutions today.


kateryna ponomarenko