Most global supply chains are ill-equipped to cope with disruptions. According to a report by Forbes, while ~90% of CEOs believe that a transformation that is digital and automated in nature can have a positive impact on not just their business, but the industry as a whole, only 25% have a digitization plan in place. Consequences became more evident with the advent of COVID 19 wherein three in four businesses reported a major disruption of some sort. (Institute for Supply Management survey, 2020). It is these reasons that therefore make it critical for CEOs, Stakeholders and even Supply Chain Managers to shift their attention from cutting costs to enabling new processes that increase connectivity and agility, both of which are crucial in an era where product cycles need to be shorter and fluid owing to a customer demand for reduced response times.

While this resilience is not achieved overnight, there are things that can be done to put businesses on the path. It is therefore key to look at what digitization strategies have worked in favour of such resilience. The below-mentioned practices stand out in such a scrutiny:

• Use of integrated cloud-based supply chain planning applications
• Interconnectivity across varying functions and stakeholders
• Comprehensive visibility into supply and demand risk
• Emphasis on AI, data science and analytics

These businesses leverage such digital practices to overcome threats in two distinct ways:

• Gaining a better understanding of what the customer wants to enhance customer experience
• Transform supply chain processes to respond to the increasing number of global uncertainties and business complexities

For instance, Proctor & Gamble (P&G) recently deployed a cloud-based platform reinforced by AI and IoT to automate their supply chain planning. The ensuing result was that they were able to predict which suppliers, and distribution centers would be impacted by hurricanes, enabling speedy and correct decision making to avoid the disruption and financial loss that competition would suffer. Additionally, this intelligence now also helps P&G develop a more accurate plan for demand, improving productivity and operational efficiency. The result? Having rapidly mobilized their manufacturing resource and supply chain for an improved production, P&G has reported its biggest sales increase in the U.S. in many years.

Furthermore, this gets reflected in a research by Supply & Demand Chain Executive. According to this research, businesses that underwent a digital transformation witnessed the following benefits:

• 50% – 75% reduction in lost sales
• 30% reduced logistics costs
• ~30% lower supply chain administrative costs
• 3%-5% increment in annual earning
• Faster management for faster strategies.

Digital transformation of supply chains enables resilience through faster management. Instead of relying on an assumptions, increased visibility and transparency into operations, along with automated processes, allows leaders and managers to make real-time decisions that affect order status and help to prevent disruption.

• Quicker identification of vulnerabilities & more.

Even when the economy looks bright, a single unprecedented event is all it takes to shake industries to the core and disrupt entire value chains. How businesses endure and bounce back depends on a combination of agile systems and processes that help achieve a certain level of efficiency and profitability. Clearly, the opportunities to build a resilient supply chain exists within the paradigm of digital transformation. Now more than ever, it is key to take this path of transformation and gain the ability to intervene before a disruption materialises – creating a precognition-effect that can guarantee long-term supply chain resilience and stability.