To define the digital supply chain, we must first define the supply chain. The supply chain describes the chain of processes, events and information sharing that occurs from the point at which a raw product or ingredient is supplied, all the way to when it is sold to the waiting consumer at the end of the line. Now, a digital supply chain refers to the digitalisation of the supply chain, where the series of processes are integrated in a digital way to enhance efficiency.
Organisations with a digital supply chain can quickly move assets, people and resources to anywhere they are needed. Companies that integrate digital technologies into their supply chain can improve service levels while cutting costs.
World Vision is a global Christian humanitarian organization. They operate in 100 different countries and as a result believe that having connectivity to all of their stakeholders, donors, carriers and customers is critical.
Their stakeholders and program leaders from around the world are serving in various communities, and they needed to have a digital tool that they could all pull from. As a result, they introduced an Enterprise Resource Planning (ERP) system for both managing donations as well as ministry executions for serving their communities. The system automates and integrates core business processes such as taking orders, scheduling operations, and keeping inventory records and financial data.
In 2019 they introduced a Transport Management System (TMS) which links back to the ERP system. The TMS system tracks their inbound and outbound transportation, offering the most cost-effective solutions.
Digital supply chains mark a significant shift away from traditional, linear supply chain models into a collection of dynamic networks. They can plan and alleviate transportation and manufacturing risks resulting in time-saving and cost efficiencies in multiple areas.
References:
Wilson G (2020). Digitising operations to help the vulnerable. 1-16. https://issuu.com/businessreviewusa/docs/bro_worldvision_july2020
Chan M (2018) What is a digital supply chain and digital supply chain explained
https://www.unleashedsoftware.com/blog/digital-supply-chain
https://www.unleashedsoftware.com/blog/digital-supply-chain-explained
Syspro simplifying your success / what is ERP?
https://za.syspro.com/product/what-is-erp/