November 19, 2024

Time is money: increase supply chain speed and agility with digital transformation

The connected supply chain woman at desk

In today’s fast-paced and unpredictable markets, supply chain speed and agility are competitive advantages. This is particularly true in the fashion, apparel, footwear, accessories and lifestyle goods industries. Numerous variables can disrupt your ability to source, manufacture, and deliver finished goods to your end customers. This includes things like labor shortages, geopolitical tensions, natural disasters, and trade restrictions. As we look ahead to 2025 and the new U.S. administration, for examples, many companies are contemplating the impact of proposed tariffs on their supply chains.

As fashion brands face mounting challenges from unexpected disruptions, rising costs, and rapid shifts in consumer demand, digital transformation has emerged as a critical strategy for supply chain agility and efficiency.

“Supply chain performance will always be put to the test. There are always unexpected interruptions – including ongoing geopolitical challenges – along with growth opportunities too good to pass up,” says Paul Magel, President of Application Solutions Division at CGS in the new BlueCherry® eBook, The Connected Supply Chain. His insight captures a key reality: adapting quickly is no longer optional.

In this post, we’ll overview how to embark upon the digital transformation of your supply chain with pragmatic considerations and action steps.

Where would speed make you more successful? As a practical first step, think about where could your company’s supply chain benefit from faster processes and decision-making. Pinpointing these areas of inefficiency or gaps in data flow can unlock your untapped potential, helping you meet demand with greater precision. Also consider if there are silos within your supply chain that, if connected, would streamline communication, reduce delays, and ultimately strengthen your business decisions.

Think about the consequences for your business if your speed of decision-making and the responsiveness of your supply chain is too slow. Outcomes could be dire, like missing timelines for planned product launches, production inefficiencies, inability to meet contractual obligations, and worst of all... decreasing customer satisfaction.

Beyond buzzwords... turn digital transformation into action

Digital transformation is no longer just an industry buzzword. It’s a strategy you can, and should, implement as a key part of your approach to supply chain management. But where should you begin? After first identifying where your supply chain should be faster and more agile, consider these key steps to get started on this vital work:

  1. Start with evaluating your enterprise software and solutions options for supply chain management. Focus on centralized, cloud-based platforms that can unify your entire operation, offering end-to-end visibility, real-time analytics, and seamless integration capabilities. Ensure the solution aligns with your business size, industry requirements, and growth projections while providing robust security and compliance measures. Look for features that cover all aspects of your supply chain, from procurement to customer fulfillment. By choosing a comprehensive cloud-based platform, you'll streamline operations, improve efficiency, and gain a competitive edge in today's dynamic market. Prioritize solutions that can adapt to your evolving needs and offer scalability as your business grows.
     
  2. Next, create a seamless digital thread. Look at your supply chain holistically from raw materials and sourcing through to delivery of finished goods to your end customer. Think about how the platforms you’re considering allow for the establishment of a continuous, accurate, digital data connection throughout your supply chain. It’s crucial that data be at-the-ready to improve your collaboration at every stage of your supply chain, and it’s also increasingly essential to empower transparency and traceability.
     
  3. Democratize the data and in turn boost visibility and efficiency. Empower both customers and supply chain partners by providing greater visibility and seamless interactions across your supply chain. Importantly, the data, reporting and predictive analytics that a fully connected and digitally empowered supply chain can help decision makers in your C-suite to make informed, decisive moves that will enhance your resiliency and competitiveness.

Real world case studies: before & after digitalization

A digitally connected supply chain is a proven way to deliver real, measurable results, versus inefficient legacy approaches. Let’s look at some examples of the benefits you can anticipate:

  • Before: Style and purchase order (PO) data had to be manually entered multiple times across departments and supplier networks, creating risk for errors and significant delays 
  • After: With a centralized cloud-based ERP-PLM solution, all style and PO information is securely accessible, streamlining communication and minimizing mistakes.
     
  • Before: Monitoring efficiency and quality control often relied on outdated methods such as gum sheets, clipboards, and spreadsheets, slowing down progress.
  • After: Advanced Shop Floor Control (SFC) technology leverages wireless tablets to track real-time data on order status, manufacturing efficiency, operator performance, and quality metrics.

Connecting and digitizing your supply chain is not as scary as you might think

By identifying bottlenecks and adopting digital solutions, your business can reduce labor costs, save time, and ensure smoother operations. A digital-first approach also unlocks critical data insights that were previously unattainable, providing a strategic advantage in a competitive market.

In your due diligence evaluating supply chain software partners, make sure to consider the supporting services that are offered to make your implementation and ongoing use of the platform effective, efficient, and reliable. The best software in the world is not the right solution for you if your team doesn’t know how to make it work for them. Industry expertise can be invaluable in this area. Do the vendors you’re considering know your industry vertically and can they bring expertise and specialization to the unique problems you face? The right fit between software and support is everything!

Forward-thinking retailers, brands, manufacturers, and suppliers are already reaping the benefits of a connected, digital supply chain. They’re predicting consumer demand, responding with agility, and staying ahead of the curve.

To explore how to transform your supply chain for speed, flexibility, and profitability, DOWNLOAD our new BlueCherry® eBook, The Connected Supply Chain: Fast, Flexible, Profitable.

 

Topics

ERP