A Case Study of Digitalisation
in Supply Chain
How Does Technology Play a Role in the Supply Chain…
Digital development grows together with the spur of Industry 4.0, which focuses on the merging of physical industrial operation with the digital world. Reduction of computer costs therefore becomes the main development in the future. Although technological cost is lowered, the power of technological intelligence escalates tremendously in recent years. According to a report from Deloitte, computing power has inclined at an average of 52% per year. Real-time access to data sources and powerful analytics tools such as predictive learning algorithms are the new blacks to the supply chain. So how exactly does computing power contribute to the supply chain?
We can picture digitalisation in supply chains works like a loop, in which offline data is brought online, analyzed to generate business insights and then being applied offline.
First step: Physical to digital
Digital record is created from capturing physical data in real life
Second step: Digital to digital
Share information and uncover meaningful insights using advanced analytics, scenario analysis, and artificial intelligence
Third Step: Digital to physical
Apply algorithms to translate digital-world decisions to effective data, to spur action and change in the physical world
What are the Advantages…
In a connected community, multiple stakeholders within one production line share information and communicate directly to each other. This process is cost effective, time efficient and error avoidant. Intelligent optimization refers to a stage at which machines and humans work together to share data for better decision making. End-to-end transparency greatly improves visibility across all levels of the supply chain. It allows businesses to synchronize schedules of different departments. tracks material flow and balances supply and demand. Holistic decision making is made thanks to transparency of information from all stakeholders that are involved in the supply chain.
A Case Study of Digital Supply Chain…
A freight company which had a fleet of 1500 vehicles in 30 different operating locations in Australia wanted to build up a safer driving culture within individual drivers to reduce risk. Also, the company wanted to better track its vehicles to improve efficiencies in operations.
To solve the problems, an in-vehicle monitoring system (IVMS) was developed to include security features and tracking systems. The system allowed driving behaviour reports and even featured coaching tools to empower leadership.
The results were imminent — there was a 90% drop in safety issues and breaches and a maximum of 17% reduction in idling, fuel economy and purchasing habit cost.
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