Industry Trends

What Is Supply Chain Digitization, and Why Does It Matter?

Digitalization, or digitization, is a hot  topic that’s been actively discussed during recent years across almost every industry vertical. With the rapid development of technology, globalization, and the impact of pandemics, every industry has faced the challenge of going digital, either partially or completely. 

Essentially, global supply chains are  a primary target for digitization. While some companies have implemented digital supply chain solutions faster, or more successfully than others, there’s no doubt that these  changes will be adopted by the slower adopters of new technology. So, what is supply chain digitization, and what are the benefits of it?

What Is Supply Chain Digitization?

Supply chain digitization is the process of converting analog supply chain processes to digital ones with the intelligent management of  validated master data. This aggregated data, from throughout your entire global  supply chain, must be effective consolidated with  data from approved  external sources.

Supply chain digitization is generally accomplished through software, which can be off-the-shelf, custom-made, or a combination of the two.  This software should focus on  the automation and integration of  business information.

Digital technologies enable intelligent supply chain management, transforming a linear process  into one in which data flows in a variety of directions to a centralized platform or control tower.

The digital supply chain enables real-time data collection and simultaneous communication throughout the entire chain. It increases the company’s flexibility and agility, improves forecasting capacities, automates processes, lowers costs, and improves the customer experience.

Where Does the Digital Supply Chain Drive Value?

A connected digital supply chain provides many benefits to businesses, from timely and actionable data to an enhanced decision-making process and improved relationships with stakeholders, partners, and customers. 


The most recent digital supply chain model not only collects data from a wider range of sources and devices, but also analyses and communicates it in a timely and efficient manner. 

Supply chain executives access to information from every sector and portion of the supply chain through integrated and networked data interchange, boosting accuracy, traceability, and operational efficiency.

Companies can identify new patterns and tendencies by analyzing the additional  data now visible through connected devices, allowing them to make more holistic business choices. 

Enhanced Forecasting

According to the Boston Consulting Group, digital supply chain management enables a 25% faster response to market demand changes. The number of planning cycles and frozen periods are  minimized, and planning becomes a continuous process that more easily adapt  to changing requirements or constraints.

It is easier to plan and anticipate the future, when a firm employs  one digital ecosystem controls to control the operations’ execution management, supply and demand planning, cash flow, and other underlying supply chain processes. The benefit is that the use of  algorithms and predictive analytics can minimize forecasting mistakes by 10% to 20% in a digital supply chain.

Operational Efficiency

There is a significant opportunity for optimization at every level of the supply chain, whether it is storage, procurement, order fulfillment, tracking, or transportation, as all aspects of the digital supply chain can be enhanced  with  modern technology.

Everything from synthesized top-level KPIs to very detailed process data, like the precise position of cars in a network,  can be included in the data set. This supply chain digitization enables a consistent information foundation and flow for all levels of seniority and functions in the supply chain.

Information from suppliers, service providers, and other stakeholders are integrated, allowing all parties to move in the same direction and make choices based on the same data.

Supply Chain Digitization: Investing in Digital Infrastructure

As technology continues to evolve,  basic technology tools  will cease to be a unique venture in the corporate environment. As digitization becomes more common, firms must keep expanding their digitization efforts to maintain a competitive advantage in their respective industries. 

A well-connected digitized supply chain keeps a company informed about all current processes and helps you to identify potential problems quicker and more effectively.  Visibility and concurrent monitoring make it easier to respond quickly to disruptive activities, reducing supply chain disruptions and lost customers.  

As companies work  to make their supply chains digital and connected, increasingly, more sophisticated and integrated data is required. Increased connection raises a slew of control issues; but, when paired with well-designed automation, this symbiotic relationship may deliver the best supply chain visibility

Businesses can  identify new patterns and tendencies by collecting more data from connected devices. Investing in a visibility platform is the most effective  approach to gain end-to-end supply chain visibility.

 A robust digital supply chain platform allows all supply chain stakeholders to view authorized  activities, transactions, and shipments in a clear and integrated environment.

Supply chain digitization with Agistix

Agistix is a global supply chain visibility platform provider that enables businesses to keep a finger on the pulse of their supply chains, reaching true visibility through data centralization. 

Agistix’s solutions support the requirements of today’s quickly evolving data interfaces and formats, enabling a non-disruptive and efficient change for businesses.

Learn more about Agistix’s sophisticated and practical solutions here.


kateryna ponomarenko