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Supply Chain Management with Digital Transformation

Our topic of discussion today is Supply Chain Management with Digital transformation. The new revolution of the industry is known as industry 4.0, referring to the use of modern technologies. In this sample essay, we will be looking at different aspects of Supply chain management affected by digital transformation.

The 21st century is the age of technology. Every industry is witnessing a technological revolution, be it big industries like logistics, automobile industries or small convince stores. These changes have triggered rapid growth in every industry with a mostly positive impact.

Moreover, we will be looking at what is Digital Transformation in Supply Chain Management? The types of digital transformation in supply chain management and the Impact of digital transformation in supply chain management.

What is Digital Transformation in Supply Chain Management?

In this paragraph, we are going to discuss what digital transformation of supply chain management or also know as digitalization & digitization of supply chain management stands for.

Nevertheless, The digital transformation or digitalization & digitization of supply chain management means replacing manual processes with digital technology, the technology can be anything from computer software, AI & ML to Robotics and automated transportations.

The types of digital transformation in supply chain management

Digital transformation looks different in each company. When someone mentions it they could mean adding new software for handling documents or they could mean replacing the whole workforce with robots.

In order to gain a competitive advantage, companies must know the difference between digitization and digitalization. These are two types of digital transformations.


Digitization means the process of converting physical documents into computer files. These physical documents can be ledgers, records, bills, and so on.

As a result of that, important documents can be viewed from anywhere. This gives access to every document across all the different branches without actually requiring physical documents. It also helps in faster processes that spread across multiple departments. Plus it is an easier and safer process as there is no risk of documents being lost or getting mixed up.

Moreover, companies also save a lot of money and decrease the risk of human error through this process. Digitization also provides improved Transparency, better Communication, Collaboration, Flexibility, and Responsiveness.

Moving on, The benefits of Applying digitization in supply chain management are:

  • Smart warehouses
  • Efficient management of spare parts
  • Autonomous & business to customer logistics
  • Prescriptive supply chain analytics
  • A complete view  of supply chain Information simultaneously available to all  members of the supply chain
  • Real-time response to customer demands and quick problem solving


On other hand, Digitalization refers to integrating physical work with digital data to create a fully optimized supply chain. It helps in creating new revenue streams and higher profit for the companies. This process includes using new Techniques like machine learning, big data analysis, artificial intelligence, and so on.

Moreover, these processes help companies analyze data better and look at it from a different perspective. With this magnified view into data, brands get a new understanding of the market with help of technology. Adding to that, by applying this insight and their knowledge, companies can explore new and better options and choose what’s best for them.

As a result, it acts as a catalyst to digitization and a path to a better profit stream.

Moving on, the benefits of digitalization are as mentioned below:

  • Improvement in data collection
  • Better resource management
  • Customer insights are Data-driven hence more accurate
  • An overall better customer experience
  • Digital culture is encouraged
  • Increased profit streams
  • Improvement in agility
  • The better overall productivity of the company

Impact of digital transformation in supply chain management

It is a known fact that the main goal is to reduce the time and cost of the process and hence, making it profitable for the company. The topics we read above do just that they save time by optimizing the processes and reduce the cost of manual labor. Also, they provide a better look into the market and open up new opportunities by reading data in a better way and from a different perspective.

Moreover, the impact as mentioned below:

  • It will Connect multiple data sources together
  • There will be a demand-driven supply chain
  • Greater visibility of processes
  • Improved customer value
  • Improvement cash flow
  • There will be an influx in diverse talent and the ability

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