Supply Chain: Trends in Digital Transformation for 2022

9 March 2022

Discover the changes in the supply chain driven by digital transformation and understand why they will be a trend in 2021

The Covid-19 pandemic has accelerated the digital transformation of the supply chain. What was expected to happen over years has been realized in months. E-commerce has grown well beyond expectations, and omnichannel is strengthening every day. At the same time, we have a demanding consumer who wants complete visibility of their order and desires flexibility in purchasing and agility in delivery.

This scenario has pushed companies to streamline their sales structure and, consequently, their logistics, dealing with much greater complexity. While many are in this race to adapt to the new reality, a good portion has not yet realized the importance of digitizing their processes, ignoring the fact that we are in a different moment with new challenges and demands.

To give you an idea, a survey conducted by the Capgemini Research Institute showed that only 35% of companies monitor their operations in real-time, 29% are modifying their operational processes to quickly adapt to external changes, and only 38% are providing employees with the tools they need to collaborate digitally with each other. (Source: Supply Chain 247).

Failing to keep up with digital transformation can come at a high cost. Companies with disconnected and outdated manual processes cannot keep up with increasingly global and complex supply chains. On the other hand, those who prioritize innovations already have solid financial results and are closer to their customers.

Digital supply chain and customer centricity

With the arguments presented above, it is now clear how important it is to prioritize digital transformation in logistics. Knowing and implementing the ideal technologies to bring speed, efficiency, and accuracy to operational processes is essential for a company to become competitive.

First of all, companies must pursue a customer-centric supply chain, fully integrated and collaborative, prioritizing end-to-end visibility, data analysis, and delivery excellence. In this transformation process, they must reinvent their operations, prioritizing a scalable implementation plan, fully focused on consumer satisfaction and capable of increasing financial results.

Trends for 2021

Discover the main trends in the digital transformation of the supply chain for the coming year:

1 – Contactless customer service solutions

The Covid-19 pandemic has had a significant influence on the development of strategies and solutions that avoid physical contact. This has also impacted retail, with many companies closing their physical stores, transforming them into mini distribution hubs. Grocery and clothing sales have also followed this direction.

With new formats, such as dark stores or micro fulfillment centers, companies seek to be close to their customers, providing quick deliveries and offering a better shopping experience, even if there is no face-to-face contact between seller and consumer. Such models have proven viable not only in terms of improving demand satisfaction but also in terms of reducing logistics costs.

Additionally, contactless solutions have led to an increase in automatic pickup points and home deliveries. These trends will continue to expand as consumers prefer to avoid crowded places and appreciate the convenience of these options.

2 – Use of big data

Big data plays an increasingly important role in logistics and the supply chain. Data analysis helps companies predict demand, optimize inventory, and improve supply chain planning.

With the advent of technologies such as artificial intelligence and machine learning, companies can now more accurately predict future demand patterns, detect hidden patterns, and even anticipate problems before they occur, allowing for proactive interventions.

Data analysis can also reduce costs and improve efficiency, for example, by helping companies identify inefficiencies in their transportation and distribution processes. Data can also be used to enhance the customer experience, such as by monitoring customer preferences and tailoring product offerings accordingly.

3 – Automation and robotics

Automation is becoming increasingly common in warehouses, thanks to improvements in robotic technology and computer vision. Robots can now handle a variety of tasks that were previously performed by humans, such as picking, packing, and storing products.

This not only improves efficiency and reduces costs but can also increase safety in warehouses by reducing the number of workplace accidents. With the pandemic, companies are also using robots to perform tasks that require close human contact, such as cleaning and sanitizing.

Automation can also extend beyond the warehouse. For example, some companies are experimenting with the use of autonomous vehicles for deliveries, which could reduce costs and increase the speed and efficiency of deliveries.

Finally, robotics and automation can help offset labor shortages in some areas of the supply chain, especially in times of crisis like a pandemic, when companies need to be more agile and responsive to rapid changes in consumer demand.

4 – Internet of Things (IoT)

The IoT is revolutionizing the supply chain by offering greater visibility and improving product traceability from start to finish. IoT devices, such as sensors, can monitor product conditions in real-time during transport, ensuring they remain in optimal conditions.

This is particularly important for temperature-sensitive products, such as food and pharmaceuticals. Additionally, IoT can help prevent losses and fraud by monitoring products at every stage of the supply chain and alerting companies in case of anomalies.