12/04/2024

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A digital transformation approach to supply chain resilience

A digital transformation approach to supply chain resilience

A supply chain manager’s ability to anticipate disruptions is invaluable. The economy, geopolitics, climate change and public health continue to change global supply chains in unpredictable ways. The ability to predict the future is one of the job requirements for supply chain managers today.

In light of these challenges, supply chain managers must be proactive about preparing for the future and ensure they have the right technology to support their company’s operations. As a result of digital transformation, businesses could optimize existing processes to gain agility and flexibility.

Suzano de Papel e Celulose (Suzano), based in Sao Paulo, relied on a digital transformation to improve its supply chain resilience, said Jefferson Mansano Ticianelli, a digital transformation executive at the company, during the “Build a Sustainable Future for Your Supply Chain and Your Business” panel at Oracle CloudWorld 2022 in Las Vegas.

Traditionally, business units worked in a siloed way to conduct business, Ticianelli said. To create better supply chain visibility, Suzano used its digital transformation efforts to create a global project that would enable the company to address compliance, customer experience, employee experience and productivity.

Scenario planning as part of digital transformation

As part of a significant digital transformation, supply chain managers can look for tools to help boost scenario planning capabilities.

“Today’s supply chains are impacted by larger events,” said Moshin Lee, vice president of supply chain planning product management at Oracle, during the “Key Best Practices to Advance Your Supply Chain Planning Strategy” panel at Oracle CloudWorld 2022. “As a consequence, our supply chains are less stable, much less predictable than they were even a few years [ago].”

Scenario planning is critical to proactive supply chain management in a time of ongoing disruptions and enables supply chain managers to make better predictions.

Examining scenarios can help identify potential disruptions and growth areas quickly, Lee said. And the most effective scenario planning involves considering multiple options at the same time.

“Alternative future scenarios … might be negative scenarios such as supply disruptions, [or] positive scenarios like competitive opportunities that lead to greater market or revenue share,” Lee said.

In a world where disruption is the rule — not the exception — planning for both makes sense.

Guilliean Pacheco is an associate site editor covering CIO strategy, digital transformation and sustainability. Before joining TechTarget, she was a freelance writer and copy editor.