What is a digital supply chain?


digital supply chain means that all links in the supply chain are completed on the Internet platform, and the efficiency is improved depending on the timeliness and two-way nature of the Internet.


For example, if you originally need to go to a milk tea shop to buy a cup of milk tea, but you choose to use a mini program to place an order first, and then go to the shop to pick up the food, without queuing, and without spending time explaining to the staff whether you want a small cup, medium cup or large cup, this is the digitization of order.


The same is true for digital supply chains, but it is the application of Internet technology to digital management of supply chains, so that product flow, information flow, and capital flow can all realize digital operation.


Why build a digital supply chain?


We can look at this issue from two aspects: one is the traditional dilemma, and the other is the trend.


Traditional dilemma


Although the supply chain may seem to have only a few simple links there are many links involved in the basic work of the supply chain, such as customer management, forecasting, orders, calculating material requirements, procurement, inventory preparation, production planning, order arrangement, logistics arrangement, supplier management, payment management, collection management, and so on.


If traditional supply chain management methods are adopted, with each department working independently and spending a lot of time making phone calls, transmitting documents, modifying documents, and then making phone calls, in addition to low office efficiency, it is also easy to lead to poor information communication between both parties and a disconnect in business activities between enterprises.


It can be seen that the drawbacks of traditional distribution models include long chains, slow reactions, and high inventory. By utilizing advanced technologies such as the Internet of Things, artificial intelligence, and big data, innovative solutions can enable coffee machines to collect customer consumption data, push feedback forms, collect experience information, and establish a more convenient and efficient supply chain.


The general trend


In today’s market, the delivery time of enterprises is constantly being compressed, the variables in the product design process are constantly increasing, and customer needs may change at any time. These market conditions have brought enormous operational pressure to the full lifecycle management of enterprise products.


The only way to address these challenges is to build an end-to-end digital supply chain, including all aspects from design, planning, manufacturing, and logistics to operation and maintenance. By establishing a brand new ecosystem spanning different regions and industries, the system network can generate data and integrate this data with internal enterprise and product data across organizational structures, establishing a brand new digital supply chain.